Adobe (ADBE) Is About to Report Q2 Earnings Tomorrow. Here Is What to Expect

Tech company Adobe (ADBE) is set to release its second-quarter Fiscal 2025 results on June 12. The stock has dropped over 10% in the past year, mainly due to cautious revenue guidance, slow AI-related gains, and rising competition. Wall Street analysts expect the company to report earnings of $4.97 per share, reflecting about 11% year-over-year growth.

Meanwhile, revenues are expected to grow by 9% from the year-ago quarter to $5.80 billion, according to data from the TipRanks Forecast page. The projected growth is largely driven by strong demand for Creative Cloud and Document Cloud services, ongoing strength in its Digital Experience segment, and early gains from AI-powered tools and tiered pricing strategies.

Analysts’ Views Ahead of Adobe’s Q2 Print

Ahead of the Q2 report, UBS analyst Karl Keirstead raised his price target on Adobe to $430 from $380 but kept a Neutral rating. The 5-star analyst highlighted that partner checks revealed only a slight pullback in April demand, with limited impact from broader macro conditions. He also believes Adobe is on track to meet its 11% annual recurring revenue (ARR) growth target for Fiscal 2025. However, ongoing concerns about disruption from AI tools keep his overall outlook cautious.

According to Main Street Data, Adobe’s Total Digital Media ARR rose to $17.63 billion in Q1 FY25, up 12.6% year-over-year, driven by strong demand for AI-powered tools like Firefly.

Meanwhile, RBC Capital analyst Matthew Swanson maintained a positive view on Adobe ahead of its Q2 results. He reaffirmed his Buy rating with a price target of $480. Swanson noted that while Adobe’s stock has lagged behind other big tech names, investor sentiment seems to be improving at current levels. As a result, the analyst expects solid performance in the second quarter.

Options Traders Anticipate a Large Move

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting a 7.64% move in either direction.

Is ADBE Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 21 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADBE price target of $519.88 per share implies 24.95% upside potential.

See More ADBE Analyst Ratings