Adobe tops earnings estimates: The company is ‘under-appreciated’

Yahoo Finance Video and Josh Lipton

December 11, 2025

In this video:

ADBE

-2.84%

Adobe (ADBE) reported results for the fourth quarter, beating analyst estimates on the top and bottom lines.

Futurum CEO Daniel Newman joins Market Domination Overtime host Josh Lipton to discuss the earnings print and the overall outlook for Adobe.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime.

Video Transcript

00:00 Speaker A

Adobe is reporting as well. Q4 uh adjusted EPS 550, street was at 539. Revenue 6.19 billion. Street was at 6.11 billion. and I’m just looking quickly what they’re guiding for ahead. Q1 adjusted EPS, 585 to 590. Street was at 566. You know, this one, I mean, obviously you’re walking into this print here, Dan, low expectations. This stock was down about 20% this year heading into this print. I mean, many obviously concerned, Dan, with Adobe that at the end of the day it’s going to be actually disrupted by AI, by AI. That’s the skeptical take, the bearish take. What do you think?

00:46 Dan

I think that people are overestimated. I do think over the next three to five years that the overall software and SAS market has some risk. I think Adobe is more sturdy, although people do see certain other disruptive companies, whether it be Figma or others as very disruptive OpenAI, whether it be using different LLMs to do certain functions in the content supply chain, for instance, that Adobe is very focused on or document management, which is another thing that Adobe is well known for. But I think the asset is under appreciated and much like CRM Salesforce, which has been able to show some strong growth. I believe it was 3.2 trillion tokens that it discussed on its new agent platform. Adobe is making pivots and one thing I think anybody out there that’s followed software for a long time knows or even a business owner or user of software knows, it’s very sticky inside the enterprise. So solutions from companies like Adobe, people don’t just rip them out as quick as you might think. So these companies have a little bit of time to get their customers to adapt to their new offerings. But I do think these companies have to be really on top of their game, be very innovative and think about ways to use tokens or more consumption based even pricing than they ever have before to give value and not see customers shift away onto new offerings.

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