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 ( ADBE) was the worst-performing stock in the S&P 500 when the maker of Acrobat and other software gave guidance that raised concerns about how it will monetize its artificial intelligence (AI) offerings.

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.