Shares in the creative software company were sliding Thursday. The economic slowdown could hit its bottom line.

Not only that, but Adobe reported $2.5 billion in positive free cash flow for the quarter, twice last year's $1.2 billion, and 36% more than reported net income. By these metrics, the quarter looked exceptionally strong, and earnings quality at Adobe was very good.

Adobe is expected to report fiscal 2025 first-quarter results after the closing bell Wednesday, with analysts mostly bullish leading into the report and next week's Adobe Summit.

Adobe shares were sliding late Wednesday despite better-than-expected quarterly results from the software firm. Adobe posted first-quarter adjusted earnings of $5.08 a share on revenue of $5.71 billion.

For context, this time last year, in fiscal Q1 2024, Adobe's balance sheet held $3.1 billion of net cash. Today, its net cash position stands at $1.2 billion. So, they've used more than 100% of their free cash flow to repurchase shares, and these shares are still falling in price.

Q1 2025 Earnings Call Mar 12, 2025, 5:00 p.m. ET. Contents: Prepared Remarks. Questions and Answers. Call Participants. Prepare

Adobe beat Wall Street expectations for first-quarter revenue on Wednesday, benefiting from strong spending on its portfolio of design products that boast artificial intelligence features. The company reported revenue of $5.

Adobe (NASDAQ; ADBE) recently announced its fiscal first quarter results for the period ending February 2025, reporting earnings of $5.08 per share on revenues of

Key Takeaways U.S. equities dropped at midday, again driven lower by concerns about new tariffs. Adobe shares sank when the software maker's guidance disappointed investors.Gold traded at a record, sending shares of mining companies higher.