What do you think about Adobe's earnings?

u/TeaConnect148 · Reddit — r/ValueInvesting · September 11, 2026 at 16:05 · ⬆ 1 pts  | View on Reddit ↗
AI Summary

{"summary": "Review of Adobe's quarter noting record FCF but slowing net new ARR, with the author guessing freemium adoption rather than AI competition explains the slowdown.", "reason": "The author analyzes Adobe's earnings and provides a fundamental interpretation of the ARR slowdown, maintaining a watch position.", "ideas": [{"symbol": "ADBE", "direction": "watch", "thesis": "The author reads Adobe's quarter as fundamentally unchanged with healthy margins, strong free cash flow and steady buybacks, but flags that net new ARR slowed 37%, showing slower new paying customer acquisition. Their interpretation is that new users are choosing the freemium tier rather than competitors taking share, supported by 70% YoY growth in freemium MAUs and 1 billion total MAUs, up 20% YoY. AI-first ARR grew 150% YoY and 30% QoQ, contributing about 37% of ARR growth but still only roughly 2.35% of total ARR, leaving the open question of whether AI erodes Adobe's moat.", "thesis_short": "Adobe ARR slowdown likely freemium, not AI loss", "quote": "Net new ARR actually slowed by 37%, which shows that new paying customer acquisition is slowing.", "confidence": 0.7, "sentiment": 0.1, "timeframe": "quarterly/unspecified"}], "model": "gemini-3.1-flash-lite", "failure_count": 0, "verified": true, "extraction_model": "deepseek-flash"}

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u/TeaConnect148 Reddit r/ValueInvesting
Adobe ARR slowdown likely freemium, not AI loss
The author reads Adobe's quarter as fundamentally unchanged with healthy margins, strong free cash flow and steady buybacks, but flags that net new ARR slowed 37%, showing slower new paying customer acquisition. Their interpretation is that new users are choosing the freemium tier rather than competitors taking share, supported by 70% YoY growth in freemium MAUs and 1 billion total MAUs, up 20% YoY. AI-first ARR grew 150% YoY and 30% QoQ, contributing about 37% of ARR growth but still only roughly 2.35% of total ARR, leaving the open question of whether AI erodes Adobe's moat.
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This Reddit post, published September 11, 2026, features u/TeaConnect148 discussing ADBE. 1 trade idea extracted by AI with direction and confidence scoring.

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