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Jun 17, 2022
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Adobe (ADBE, $354.65) beats Q2 earnings expectations

Adobe (ADBE, $354.65) beats Q2 earnings expectations

Adobe reported second quarter earnings that were higher  than what analysts’ expected. Revenue, too, topped analysts’ estimates.

The software company’s adjusted earnings during the quarter ended June 3 came in at $3.35 per share, compared to the $3.31 per share expected by analysts, according to Refinitiv.

Revenue rose +14% from the year-ago quarter to  $4.39 billion ,also exceeding analysts’ expectations of  $4.34 billion.

Revenue from Adobe's Digital Media segment (which includes Creative Cloud and Document Cloud products) grew 15% to $3.20 billion, higher than the StreetAccount consensus estimate of $3.16 billion.

The Digital Experience business revenue rose +17% to $1.10 billion, above the $1.08 billion StreetAccount consensus.

For the full fiscal year, Adobe lowered its forecast to $13.50 in adjusted earnings per share (vs. December guidance of $13.70 ). Its revenue guidance is now  $17.65 billion (vs. December guidance of $17.90 billion).

The company mentioned that the war in Ukraine posed a $175 million foreign-exchange headwind.

 

Related Ticker: ADBE

Momentum Indicator for ADBE turns positive, indicating new upward trend

ADBE saw its Momentum Indicator move above the 0 level on October 30, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In 60 of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at 71%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Moving Average Convergence Divergence (MACD) for ADBE just turned positive on October 08, 2026. Looking at past instances where ADBE's MACD turned positive, the stock continued to rise in 20 of 42 cases over the following month. The odds of a continued upward trend are 48%.

The 10-day moving average for ADBE crossed bullishly above the 50-day moving average on October 30, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 61%.

Following a +4.70% 3-day Advance, the price is estimated to grow further. Considering data from situations where ADBE advanced for three days, in 192 of 312 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.

The Aroon Indicator entered an Uptrend today. In 98 of 204 cases where ADBE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 48%.

Bearish Trend Analysis

The 10-day RSI Indicator for ADBE moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In 29 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 76%.

ADBE moved below its 50-day moving average on October 27, 2026 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADBE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.

ADBE broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is 19 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating steady price growth. ADBE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.455) is normal, around the industry mean (-1.596). P/E Ratio (13.956) is within average values for comparable stocks, (15.525). Projected Growth (PEG Ratio) (0.558) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.073) among similar stocks. P/S Ratio (3.923) is also within normal values, averaging (71.128).

The Tickeron PE Growth Rating for this company is 81 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ADBE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.

Notable companies

The most notable companies in this group are Shopify Inc (NASDAQ:SHOP), Salesforce (NYSE:CRM), Uber Technologies (NYSE:UBER), ServiceNow Inc. (NYSE:NOW), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), Datadog (NASDAQ:DDOG), Autodesk (NASDAQ:ADSK), Atlassian Corp (NASDAQ:TEAM), Workday (NASDAQ:WDAY).

Industry description

Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.

Market Cap

The average market capitalization across the Packaged Software Industry is 10.63B. The market cap for tickers in the group ranges from 39 to 271.26B. SAP holds the highest valuation in this group at 271.26B. The lowest valued company is STIXF at 39.

High and low price notable news

The average weekly price growth across all stocks in the Packaged Software Industry was -3%. For the same Industry, the average monthly price growth was -3%, and the average quarterly price growth was -2%. AEYE experienced the highest price growth at 61%, while YMT experienced the biggest fall at -45%.

Volume

The average weekly volume growth across all stocks in the Packaged Software Industry was 41%. For the same stocks of the Industry, the average monthly volume growth was 5% and the average quarterly volume growth was -41%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 58
Price Growth Rating: 58
SMR Rating: 77
Profit Risk Rating: 93
Seasonality Score: 9 (-100 ... +100)
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General Information

a developer of software solutions for web and print publishing

Industry PackagedSoftware

Industry
Packaged Software
Address
345 Park Avenue
Phone
+1 408 536-6000
Employees
31360
Web
https://www.adobe.com
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