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Adobe Delivers Record Revenue, But Its Outlook Underwhelms

1. Adobe reported record revenue of $5.71 billion, surpassing expectations. 2. Adjusted earnings rose to $2.22 billion, exceeding analyst estimates. 3. Digital Media revenue, including Creative Cloud, increased by 11% year-over-year. 4. CEO noted Adobe is well-positioned to leverage AI in the creative economy. 5. Despite strong results, future revenue outlook fell below analyst predictions.

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FAQ

Why Bearish?

Despite record revenue, the disappointing future guidance led to a drop in shares. Historically, similar situations have resulted in stock price declines.

How important is it?

The strong quarter reflects operational strength but is dampened by weak guidance. Analysts may reassess growth expectations based on the outlook.

Why Short Term?

The immediate reaction to the outlook will likely affect stock performance. Previous earnings reports have shown short-term volatility following disappointing guidance.

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