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Adobe Raises Forecast After Q2 Beat as CFO Departs and Shares Slide

Management said AI-first annual recurring revenue topped $500 million, a sign of early AI monetization that will test the company’s ability to turn features into lasting subscription growth.

Adobe logo is seen on smartphone in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration
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Overview

  • On June 11, Adobe reported fiscal Q2 revenue of $6.62 billion and adjusted EPS of $5.96, both above Street estimates, and raised full-year revenue guidance to $26.5–$26.6 billion and adjusted EPS guidance to $24.35–$24.45.
  • The company disclosed that AI-first annual recurring revenue more than tripled to exceed $500 million, a metric management pointed to as evidence that generative-AI features are starting to generate recurring customer payments.
  • CFO Dan Durn will leave the company effective June 15 and Steve Day will serve as interim CFO, a leadership shift that adds to earlier CEO succession plans and has heightened investor concern about strategic continuity.
  • Shares fell into and past a 52-week low, trading sharply lower in after-hours and premarket sessions, with options pricing implying roughly an 8.7% expected move and the stock down about 36–37% year to date.
  • Analysts and investors remain focused on whether AI can drive durable ARR and pricing power for Creative and Experience products, with competition from Figma, Canva and AI labs and a recent pattern of post-earnings share declines shaping market skepticism and what to watch next.