Adobe (NASDAQ:ADBE) Releases Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Adobe reported quarterly earnings of $5.31 EPS, exceeding the consensus estimate of $5.18 by $0.13, with a revenue of $5.99 billion, also above expectations.
• The company updated its FY 2025 EPS guidance to a range of 20.800-20.850 and for Q4 2025 to 5.350-5.400 EPS.
• Adobe's stock experienced a slight decline of 0.3% to $349.53, amidst increasing institutional interest, with 81.79% of shares held by institutional investors.

Adobe (NASDAQ:ADBE - Get Free Report) issued its quarterly earnings data on Thursday. The software company reported $5.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.18 by $0.13, Briefing.com reports. Adobe had a return on equity of 53.68% and a net margin of 30.39%.The firm had revenue of $5.99 billion during the quarter, compared to the consensus estimate of $5.91 billion. During the same period in the previous year, the firm posted $4.65 EPS. The company's quarterly revenue was up 10.7% compared to the same quarter last year. Adobe updated its FY 2025 guidance to 20.800-20.850 EPS and its Q4 2025 guidance to 5.350-5.400 EPS.

Adobe Trading Down 0.3%

Shares of ADBE stock traded down $1.03 on Friday, reaching $349.53. 13,454,874 shares of the stock were exchanged, compared to its average volume of 3,875,430. The stock has a market cap of $148.27 billion, a P/E ratio of 22.36, a price-to-earnings-growth ratio of 1.66 and a beta of 1.48. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.54. The firm has a 50 day moving average of $357.92 and a two-hundred day moving average of $380.45. Adobe has a 1-year low of $330.04 and a 1-year high of $557.90.

Institutional Trading of Adobe

A number of institutional investors and hedge funds have recently made changes to their positions in ADBE. Osterweis Capital Management Inc. increased its holdings in shares of Adobe by 4,520.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 231 shares of the software company's stock worth $89,000 after buying an additional 226 shares during the last quarter. Front Street Capital Management Inc. increased its holdings in shares of Adobe by 8.2% during the 2nd quarter. Front Street Capital Management Inc. now owns 541 shares of the software company's stock worth $209,000 after buying an additional 41 shares during the last quarter. Stonebridge Capital Advisors LLC increased its holdings in shares of Adobe by 10.7% during the 2nd quarter. Stonebridge Capital Advisors LLC now owns 620 shares of the software company's stock worth $240,000 after buying an additional 60 shares during the last quarter. Vista Capital Partners Inc. increased its holdings in shares of Adobe by 5.8% during the 2nd quarter. Vista Capital Partners Inc. now owns 624 shares of the software company's stock worth $241,000 after buying an additional 34 shares during the last quarter. Finally, Redwood Financial Network Corp increased its holdings in shares of Adobe by 6.5% during the 2nd quarter. Redwood Financial Network Corp now owns 853 shares of the software company's stock worth $330,000 after buying an additional 52 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ADBE. DA Davidson restated a "buy" rating and set a $500.00 price objective on shares of Adobe in a research report on Friday. Oppenheimer cut their price objective on Adobe from $500.00 to $460.00 and set an "outperform" rating for the company in a research report on Tuesday. Citigroup cut their price target on Adobe from $450.00 to $400.00 and set a "neutral" rating for the company in a report on Thursday. Bank of America boosted their price target on Adobe from $424.00 to $475.00 and gave the company a "buy" rating in a report on Friday, June 13th. Finally, Rothschild & Co Redburn downgraded Adobe from a "neutral" rating to a "sell" rating and set a $280.00 price target for the company. in a report on Wednesday, July 2nd. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $435.63.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.

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