Adobe Stock Falls 5% Overnight Despite Q2 Beat and Raised Guidance

Adobe Inc. shares dropped over 5% in overnight trading Friday despite posting strong second-quarter results and raising full-year guidance, according to analysis from Patrick Moorhead, CEO of Moor Insight & Strategy. The decline stemmed from management's prioritization of user growth over near-term revenue through expanded freemium offerings of design and AI tools, along with deferred Creative Cloud price increases. "Adobe is choosing to lower second-half annual recurring revenue from individual subscribers to go all-in on a freemium funnel," Moorhead wrote on X. Q2 revenue rose 13% to $6.62 billion, beating consensus of $6.45 billion, while non-GAAP earnings per share reached $5.96, ahead of the $5.82 target. The company raised full-year revenue guidance to $26.5–$26.6 billion from $25.9–$26.1 billion.
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