San Jose, California-based Adobe Inc. (ADBE) is a software company that provides creative, document, and digital experience solutions through its Creative Cloud, Document Cloud, and Experience Cloud segments. With a market capitalization of approximately $89.5 billion, its products help individuals and businesses create content, manage PDF documents, collaborate, and deliver personalized digital customer experiences using AI-powered tools.
ADBE is set to report its Q3 earnings soon. Ahead of the release, analysts expect the company to report a diluted EPS of $4.86, up 13.3% from $4.29 in the year-ago quarter. ADBE has surpassed Wall Street's EPS estimates in two of the past four quarters but missed estimates in the other two.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
For fiscal 2026, analysts expect the company to report EPS of $19.81, up 15.2% from $17.20 in fiscal 2025. Moreover, its EPS is expected to increase by another 12.7% to $22.33 in fiscal 2027.
www.barchart.comADBE stock has declined 39.4% over the past 52 weeks, outperforming both the S&P 500 Index ($SPX), which returned 16.5%, and the State Street Technology Select Sector SPDR ETF (XLK), which gained 34.6% during the same period.
www.barchart.comOn Jul. 21, Adobe shares fell 3.5% after Morgan Stanley downgraded the stock to "Underweight" from "Equal-Weight" and cut its price target to $240 from $365. The brokerage cited concerns over Adobe's shift toward free-tier offerings, leadership uncertainty, elevated AI investments, and intensifying competition from AI-native rivals, which could delay revenue growth and weigh on profitability.
Analysts remain neutral on ADBE, with the stock earning a consensus "Hold" rating. Among the 38 analysts covering the stock, seven recommend a "Strong Buy," two rate it a "Moderate Buy," 23 recommend a "Hold," two recommend a "Moderate Sell," and four suggest a "Strong Sell." The average price target of $259.24 implies a potential upside of 15.2% from the current share price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Mag 7 Q2 Earnings Haven’t Been So ‘Magnificent.’ What META, MSFT, and AMZN Need to Report to Turn the Tide. Option Volatility And Earnings Report For July 27-31 Stocks Set to Open Sharply Higher as Oil Prices Sink, Big Tech Earnings and Fed Meeting in Focus Tesla Missed by 38% But Elon Musk Is Not Worried. Here’s What TSLA Investors Should Make of That.