Adobe (NASDAQ:ADBE) Releases FY 2026 Earnings Guidance

Key Points

• Adobe raised its FY 2026 outlook, guiding for EPS of 24.35 to 24.45 versus the 22.67 consensus estimate and revenue of $26.5 billion to $26.6 billion versus $26.1 billion expected.
• Q3 2026 guidance also came in strong, with Adobe projecting EPS of 6.05 to 6.10.
• The stock fell sharply after the update, dropping 6.5% to $218.24 as investors remained skeptical about Adobe’s AI growth story and broader near-term catalysts.

Adobe (NASDAQ:ADBE - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 24.350-24.450 for the period, compared to the consensus estimate of 22.670. The company issued revenue guidance of $26.5 billion-$26.6 billion, compared to the consensus revenue estimate of $26.1 billion. Adobe also updated its Q3 2026 guidance to 6.050-6.100 EPS.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. JPMorgan Chase & Co. cut their price target on Adobe from $520.00 to $420.00 and set an "overweight" rating for the company in a report on Friday, March 13th. Summit Redstone set a $350.00 target price on Adobe in a research note on Friday, April 17th. Stifel Nicolaus dropped their target price on Adobe from $400.00 to $350.00 and set a "buy" rating for the company in a research note on Monday. TD Cowen dropped their target price on Adobe from $310.00 to $285.00 and set a "hold" rating for the company in a research note on Monday. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Adobe in a research note on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $331.65.

Adobe Stock Down 6.5%

Shares of NASDAQ ADBE traded down $15.14 on Thursday, hitting $218.24. The company had a trading volume of 11,446,894 shares, compared to its average volume of 5,590,047. Adobe has a 12-month low of $218.34 and a 12-month high of $416.39. The business has a 50 day moving average of $245.79 and a two-hundred day moving average of $279.88. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. The firm has a market capitalization of $88.21 billion, a P/E ratio of 12.71, a PEG ratio of 0.93 and a beta of 1.42.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating analysts' consensus estimates of $5.83 by $0.13. The firm had revenue of $6.62 billion during the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, equities research analysts forecast that Adobe will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its Board of Directors has initiated a stock repurchase program on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization authorizes the software company to reacquire up to 24.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other Adobe news, CAO Jillian Forusz sold 755 shares of Adobe stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total transaction of $185,918.75. Following the sale, the chief accounting officer owned 3,521 shares of the company's stock, valued at $867,046.25. The trade was a 17.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the sale, the chief executive officer directly owned 359,538 shares in the company, valued at $87,561,884.52. The trade was a 17.26% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 77,091 shares of company stock valued at $18,782,773. Insiders own 0.20% of the company's stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Analysts still expect Adobe to post year-over-year revenue growth and another earnings beat, with some coverage noting a long streak of revenue beats heading into the report.
• Positive Sentiment: A new federal bill focused on stylistic impersonation and AI-generated art could underscore the importance of Adobe’s creative tools and IP protections over time.
• Neutral Sentiment: Options markets are pricing in a large post-earnings move, showing that traders expect the results and guidance to materially reset sentiment in either direction.
• Neutral Sentiment: Market chatter around a possible CEO transition and new AI leadership has added uncertainty, but it is not yet a confirmed catalyst.
• Negative Sentiment: Investors are increasingly skeptical that Adobe’s AI push is translating into durable growth, with multiple reports saying the stock is falling ahead of earnings because of doubts about the AI narrative. Adobe Stock Sinks to Multi-Year Low Ahead of Earnings
• Negative Sentiment: The stock is near a multi-year or 52-week low, and several articles note that traders are worried Adobe may not deliver enough in Q2 results to change the narrative. Adobe Q2 Earnings: Will 13-Quarter Revenue Beat Streak Survive Macro Pressure?
• Negative Sentiment: Commentary from market watchers and Jim Cramer highlighted competition, shrinking SaaS enthusiasm, and a lack of obvious catalysts, reinforcing the bearish pre-earnings tone. Adobe Faces Make-or-Break Earnings Test as Traders Brace for Big Stock Swing

Hedge Funds Weigh In On Adobe

A number of hedge funds have recently modified their holdings of ADBE. State Street Corp grew its holdings in shares of Adobe by 1.7% during the third quarter. State Street Corp now owns 20,632,009 shares of the software company's stock valued at $7,277,941,000 after buying an additional 352,448 shares in the last quarter. Amundi boosted its position in Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company's stock valued at $1,711,583,000 after purchasing an additional 742,646 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in Adobe by 2.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,115,551 shares of the software company's stock valued at $1,090,412,000 after purchasing an additional 65,175 shares during the last quarter. FIL Ltd boosted its position in Adobe by 6.3% during the fourth quarter. FIL Ltd now owns 2,678,236 shares of the software company's stock valued at $937,356,000 after purchasing an additional 158,536 shares during the last quarter. Finally, AQR Capital Management LLC boosted its position in Adobe by 55.2% during the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock valued at $912,705,000 after purchasing an additional 920,353 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

About Adobe

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company's core offerings are organized around digital media and digital experience.

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