Citizens JMP Reiterates Market Perform Rating on Adobe (ADBE)

Citizens JMP analyst Patrick Walravens reiterated a Market Perform rating on Adobe (NASDAQ: ADBE).

The analyst commented, “We maintain our Market Perform rating on Adobe Systems, Inc. after the company announced generally better-than-expected F2Q25 results, with non-GAAP EPS of $5.06 (consensus $4.96), an 89.1% gross margin (consensus 90.0%) and 45.5% operating margin (consensus 45.2%) on revenue of $5.87B (consensus $5.79B), up 11% y/y (11% in cc), up from 10% last quarter (11% in cc), and where FX represented "maybe a third of where you're seeing the benefit"; Digital Media segment revenue growth of 11%, flat with 11% last quarter; Digital Experience segment revenue growth of 10%, up from 9% last quarter; better than- expected net new Digital Media ARR of $460M (consensus $430M); RPO of $19.69B (consensus $19.79B), up 10% y/y, a deceleration from 12% last quarter and flat sequentially; and free cash flow of $2.14B (consensus $2.09B) — all of which left the stock down ~1% in the aftermarket after having fallen 7% year to date versus a 3% increase for the S&P 500 and a 2% increase for the Russell 3000.”

For an analyst ratings summary and ratings history on Adobe click here. For more ratings news on Adobe click here.

Shares of Adobe closed at $413.68 yesterday.

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