"Adobe reports after the close with consensus looking for high-single-digit revenue growth and 11% EPS growth, keeping the focus on how AI products translate to ARR and guidance. Management last quarter raised FY25 revenue/EPS targets and framed Q3 revenue at $5.875-$5.925B. This print matters for evidence that AI-first offerings (Acrobat AI Assistant, Firefly, GenStudio) are scaling beyond usage into durable ARR while Creative Cloud Pro stratification proceeds smoothly."
"AI monetization run-rateManagement said AI-influenced revenue is already "in the billions" and the AI-first book is tracking ahead of the $250M FY25 exit target; look for ARR disclosure and attach to paid tiers. Creative Cloud Pro rolloutCC Pro is positioned as the "sweet spot" for pros, rolling in on renewals by region; watch for commentary on upgrade rates and regional timelines. Third-party models in FireflySupport for Google/OpenAI/Black Forest Labs within Firefly could widen funnel while preserving enterprise IP safety; adoption signals matter. DX momentum & agentsAEP + apps >40% YoY subscription growth last quarter; any update on agentic AI and GenStudio adoption informs H2 trajectory."
Adobe is expected to report $5.91B revenue and $5.18 normalized EPS, implying high-single-digit revenue growth and 11% EPS growth. Management previously raised FY25 revenue and EPS targets and set Q3 revenue guidance at $5.875–$5.925B. Key metrics include disclosure of AI-influenced ARR, conversion of AI-first offerings (Acrobat AI Assistant, Firefly, GenStudio) from usage into recurring revenue, and attachment of AI features to paid tiers. Creative Cloud Pro upgrade rates and regional rollout timing will affect subscription mix. Support for third-party models in Firefly, AEP and apps subscription momentum, and GenStudio/agent adoption will influence H2 trajectory.
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