1. Adobe reported record Q4 revenue of $6.19 billion, exceeding expectations. 2. Fiscal 2025 revenue reached $23.77 billion, indicating 11% growth year-over-year. 3. Projected FY 2026 revenue guidance of $25.9-$26.1 billion is above consensus. 4. Shares have fallen over 22% this year despite strong earnings growth. 5. Investors seek evidence of higher AI product adoption to improve sentiment.
FAQ
Why Neutral?
Although earnings exceeded estimates, negative sentiment persists due to broader market trends and competition in AI.
How important is it?
Positive earnings news might boost confidence, but continued concerns over AI readiness overshadow it.
Why Short Term?
Market reaction to quarterly results will likely influence stock in the near term, while long-term growth depends on AI adoption and monetization.