Adobe Reports Record Revenue but Its Stock Takes a Tumble

The company’s stock fell nearly 14 percent on March 13. Over the past five years, the stock has lagged far behind the S&P 500 Index.
Adobe Reports Record Revenue but Its Stock Takes a Tumble
The Adobe logo at Adobe Systems headquarters in San Jose, Calif., on Jan. 15, 2010. Justin Sullivan/Getty Images
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Adobe delivered record sales and operating cash flow for the first quarter of fiscal year 2025, driven by a customer-focused innovative strategy. However, its outlook failed to excite Wall Street, leading to a sell-off in its shares on March 13.

On March 12, the maker of popular software products such as Photoshop, Illustrator, Acrobat, Premiere Pro, and After Effects reported first-quarter results that beat market expectations. Diluted earnings came in at $4.14 per share on a record $5.71 billion in revenue, up 10 percent from a year earlier.
Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”