Adobe Stock Drops As CFO Dan Durn Resigns Overshadowing Higher Q2 Results, Outlook Upgrade

(RTTNews) - Shares of Adobe Inc. were losing around 4 percent in the pre-market activity on Nasdaq on Friday after the tech major announced that Dan Durn, its executive vice president and CFO, is departing on June 15 to join a new firm.

Meanwhile, the company reported higher second-quarter results, issued third -quarter outlook, and upgraded fiscal 2026 outlook for adjusted earnings and revenues reflecting strong AI-driven demand.

Regarding the management change, Adobe said Steve Day, SVP of Corporate Finance and CFO of its Customer Experience Orchestration Business Unit, will serve as interim Chief Financial Officer, effective June 15. Day, with 20 years of financial leadership experience at Adobe, will report directly to CEO and Chair Shantanu Narayen.

The news comes as the firm executes its strategy to deliver AI innovations to a broader set of customers across creativity, productivity and customer experience orchestration.

Meanwhile, Semiconductor maker Marvell Technology, Inc. (MRVL) announced the appointment of Durn as its new Chief Finance Officer, succeeding Willem Meintjes, effective June 15.

Durn has been serving as Adobe's CFO and Executive Vice President of Finance, Technology, Security and Operations since October 2021.

Further, about its outlook, Adobe said it expects third-quarter earnings per share of $4.40 to $4.45, and adjusted earnings per share of $6.05 to $6.10, with total revenue of $6.67 billion to $6.72 billion.

For fiscal 2026, the firm continues to expect earnings per share of $17.90 to $18.00, and total Adobe ending Annualized Recurring Revenue or ARR growth of 10.2 percent year-over-year.

Meanwhile, annual adjusted earnings per share is now expected between $24.35 and $24.45, higher than previous view of $23.30 to $23.50, and total revenues are now projected between $26.50 billion and $26.60 billion, compared to $25.90 billion to $26.10 billion expected earlier.

The company raised outlook for Business Professionals & Consumers, as well as Creative & Marketing Professionals subscription revenues.

In the second quarter, Adobe's net income totaled $1.71 billion or $4.25 per share, compared with $1.69 billion or $3.94 per share last year.

The latest result included a $0.17 per share non-cash goodwill impairment charge related to the Publishing & Advertising reporting unit.

Adjusted earnings were $2.40 billion or $5.96 per share for the period.

The company's revenue for the period rose 12.6 percent to $6.62 billion from $5.87 billion last year. Revenue growth was 11 percent in constant currency.

Total Customer Group subscription revenue was $6.39 billion, as 14 percent increase year-over-year growth, including approximately $40 million from Semrush following acquisition

Total Adobe ARR exiting the quarter was $27.10 billion, and Remaining Performance Obligations or RPO were $22.27 billion.

In pre-market activity on Nasdaq, Adobe shares were losing around 4.3 percent, at $209.30, extending the loss of 6.3 percent on Thursday's close.

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