Why Adobe Stock Just Couldn't Light a Fire Under Investors Today

Key Points

• The veteran software slinger published its latest set of quarterly earnings.

• It managed to grow both revenue and net income, with the former notching a new all-time high.

• 10 stocks we like better than Adobe ›

On the last trading day of the week, the market couldn't seem to make up its mind about Adobe Systems' (NASDAQ: ADBE) latest set of quarterly results. The tech industry mainstay released its fiscal third-quarter results for 2025, and they didn't seem to meet the lofty expectations of some investors. The stock ended up closing marginally down in price, roughly mirroring the performance of the benchmark S&P 500 index on the day.

AI-enhanced growth insufficient?

For the period, Adobe posted record revenue of just under $6 billion. Although the company notched an all-time high, that figure was only 1% above that of the same quarter of 2024. Non-GAAP (adjusted) net income rose at a more precipitous 8%, landing at a bit under $2.3 billion ($5.31 per share).

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Image source: Getty Images.

Both figures came in above the consensus analyst estimates, although neither was a crushing beat. The average pundit projection for revenue was $5.91 billion, and that for adjusted profitability was $5.18 per share.

In its earnings release, Adobe implied that its dive into artificial intelligence (AI) was helping the company grow, pointing out in numerous instances that the technology is being used across a broad range of its products. Given the numerous mentions, it's likely that certain investors expected more robust growth given the promise and potential of AI.

Broadly in-line guidance

Adobe also proffered updated guidance for both its current quarter (the fourth) and the entirety of 2025. For the former period, it's expecting to earn between just under $6.08 billion and nearly $6.13 billion in revenue, netting an adjusted net income of $5.35-$5.40 per share. The consensus analyst estimate for the two metrics is $6.09 billion and $5.34 per share, respectively.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe. The Motley Fool has a disclosure policy.