Hi everyone,
I wanted to share my personal notes on the latest earnings results this week from $ADBE (Adobe Systems Inc) . Before we have a look at it, let me know if you think I should add more Adobe shares to the portfolio?
To start with, the share price reacted positively after hours, as the company beat expectations and nudged its guidance higher. I think that it’s worth remembering that Adobe is still down more than 20% since the start of the year, far behind most of its large-cap tech peers that we have also in our portfolio.
For the third quarter, performance was quite good in my opinion. Adjusted earnings came in at $5.31 per share (above the $5.18 forecast), with revenue at $5.99B, up 11% year over year and slightly ahead of consensus. Net income rose to $1.77B ($4.18 per share), compared with $1.68B ($3.76) last year.
Looking forward, the company has provided a Q4 guidance of $5.35–$5.40 EPS (which is slightly above estimates) and $6.08–$6.13B in revenue, broadly in line with what analysts expected. While I was listening to the earnings call, CEO Shantanu Narayen highlighted that AI enhancements are becoming a bigger part of Adobe’s product suite, and customers are starting to pay for those tools.
To conclude, I think Adobe showed a reassuring quarter: beating expectations, above than expectation guidance, and showing that new product initiatives are gaining traction. The share price is still under pressure for the year, but I see a company that’s executing well and laying the foundation for long-term growth which is key in our portfolio. The question is whether investors will wait for more visible acceleration before turning more positive.
Have a nice weekend.
Guillaume Serdan... Show More
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Thu Nov 13 2025 21:07:26 GMT+0000 (Coordinated Universal Time)
