Overview
- Adobe posted a fiscal Q2 revenue beat, reporting $6.62 billion and raising full‑year revenue and profit guidance after the quarter that ended May 29.
- Management said it will pursue a freemium growth model to accelerate user acquisition and lifetime value and warned the move could depress near‑term recurring revenue.
- CFO Dan Durn will depart effective June 15 to join Marvell Technology, adding to earlier plans for CEO Shantanu Narayen to step down once a successor is named.
- The stock fell sharply after the announcements, with a single‑day drop of about 6% and a steep year‑to‑date decline as multiple analysts cut price targets or downgraded the shares.
- Adobe reported AI‑first ARR more than tripled to over $500 million but analysts say competition from freemium rivals and a lag between AI usage and monetization leave the company in a 'show me' phase.