Overview
- Adobe reported a record fiscal Q2 with $6.62 billion in revenue and EPS that beat expectations, but the results prompted more focus on strategy than on the beat.
- The company’s CFO, Dan Durn, announced his departure in mid-June and an interim CFO was named, heightening investor concerns about leadership and execution.
- Management has rolled out a freemium, AI-first push that expanded Firefly and a new creative agent across Photoshop, Premiere, Illustrator, InDesign and Frame.io and added integrations with ChatGPT, Claude, Copilot and Gemini.
- Investors reacted negatively after the quarter, driving the stock to a 52-week low, and several analysts cut ratings or price targets while debate grows over whether Adobe can quickly monetize the larger user base.
- The sell-off has slashed valuation multiples and reopened a value-versus-secular-risk debate for holders and creators who rely on Adobe’s tools as lower-cost AI-native rivals pressure pricing power.