Overview
- Adobe reported third-quarter results Thursday, delivering $6.76 billion in revenue and $6.13 in adjusted EPS, modestly above Wall Street estimates.
- The company said AI-first annual recurring revenue has more than tripled year over year and topped $500 million, showing rapid adoption of AI features across its products.
- Shares remain under pressure after falling about 27% year to date and declining after 15 of the past 20 quarterly reports, reflecting investor focus on long-term monetization.
- Leadership changes are adding to uncertainty: Adobe named Anil Chakravarthy as CEO effective in December, the stock fell about 6.7% on that announcement, the CFO left in June and an interim finance chief is in place, and a senior product president is due to depart later this month.
- Market watchers say the next tests for Adobe will be clearer signals on AI monetization and forward guidance from the company, plus any early strategic cues from Chakravarthy if he joins upcoming investor briefings.