Adobe delivered a solid Q2 2024 result with revenue of $5.309B, up 5.17% year over year and 2.45% quarter over quarter. The firm maintained a very high gross margin (~87.9%), driven by its subscription-based model, while delivering an operating margin of ~35.5% and a net margin near 29.6%. Net income of $1.573B translated into earnings per diluted share of $3.49. Cash generation remained robust, with operating cash flow of $1.94B and free cash flow of $1.889B, supporting a net cash position of approximately $1.57B and ongoing willingness to deploy capital through buybacks (about $2.5B in the period) while preserving a strong balance sheet (total assets $30.0B; total liabilities $15.16B; equity $14.84B). The quarter’s profitability was supported by favorable operating leverage and strong efficiency metrics, with a net cash conversion cycle of negative 22.88 days. While revenue growth was solid, Adobe continues to face the longer-term challenge of sustaining high growth in a mature software market and balancing investments in AI-enabled capabilities with disciplined cost management. Absent an explicit forward guidance from management in the provided data, investors should monitor the cadence of AI-related productization, cross-sell across Digital Media and Digital Experience, and the durability of subscription retention as key drivers of the next two quarters.