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Adobe Second-Quarter Results Top Estimates; CFO Resigns

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Adobe Second-Quarter Results Top Estimates; CFO Resigns

Adobe's (ADBE) fiscal second-quarter results surpassed Wall Street's estimates amid strong artificial intelligence-driven demand, while the Photoshop maker said Chief Financial Officer Dan Durn resigned.

Adjusted earnings per share rose to $5.96 in the three months ended May 29 from $5.06 a year earlier, compared with the FactSet-polled consensus of $5.82. Revenue jumped 13% to $6.62 billion, higher than the Street's $6.45 billion view.

Adobe's record revenue in the second quarter reflected "strong AI-driven demand across our customer groups," Chief Executive Shantanu Narayen said in a statement.

Annualized recurring revenue exiting the quarter was $27.10 billion. Analysts expected $26.60 billion. AI-first ARR tripled year over year to more than $500 million, according to the company.

RBC Capital Markets expected Adobe to deliver "solid" results and ARR above consensus expectations.

Subscription revenue jumped 14% year-over-year to $6.42 billion.

Durn will leave the company on June 15, Adobe said. Its customer experience orchestration business unit CFO, Steve Day, will serve as interim CFO.

Adobe's shares were down 6% in after-hours trading. The stock declined nearly 38% so far this year through Thursday close.

Marvell Technology (MRVL) said late Thursday that it appointed Durn as CFO, effective June 15.

As announced in March, Narayen plans to step down as Adobe's CEO after a successor has been appointed.

Adobe raised its fiscal 2026 adjusted EPS outlook to between $24.35 and $24.45 from the prior guidance of $23.30 to $23.50. Revenue is pegged at $26.50 billion to $26.60 billion, up from $25.90 billion to $26.10 billion previously expected.

Analysts are modeling non-GAAP EPS of $23.54 and revenue of $26.06 billion.

For the third quarter, Adobe projected adjusted EPS of $6.05 to $6.10 on revenue between $6.67 billion and $6.72 billion. The market consensus indicates $5.77 and $6.52 billion, respectively.

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