Stock Pulse
Adobe (ADBE) reported strong Q1 2025 earnings, beating expectations on revenue and EPS, driven by growth in Digital Media and Digital Experience segments and successful AI integrations like Firefly [3], [7], [8], [9], [10], [14]. However, the company issued disappointing Q2 guidance, focusing on concerns about AI monetization, causing a significant stock drop and raising market skepticism about their AI strategy [1], [2], [3], [4], [5]. Despite the negative market reaction, some analysts remain bullish on Adobe's long-term AI-driven growth potential [4]. The Chief Strategy Officer resigned, and new executive incentive programs tied to performance were introduced [12]. Earlier in the year, strong FY2024 results were reported, highlighting AI's contribution [14].