Adobe Q2 highlight was net-new digital ARR, says RBC Capital

RBC Capital keeps an Outperform rating and $600 price target on Adobe after its Q2 earnings beat. The results came in ahead of expectations and the high-end of guidance, with the highlight being net-new digital media annual recurring revenue, or ARR, of $487M, the analyst tells investors in a research note. RBC adds that while the firm didn’t get specific gen-AI contribution details, the qualitative commentary remains positive with growth in new users, migrations to higher-priced plans, and traction around flagship products.