Adobe (NASDAQ:ADBE) Releases Q3 2026 Earnings Guidance

Key Points

• Adobe raised its Q3 2026 outlook, guiding for EPS of 6.05 to 6.10 versus the 5.54 consensus and revenue of about $6.7 billion versus the $6.5 billion estimate.
• The company also updated its FY 2026 EPS guidance to 24.35 to 24.45, signaling management expects full-year performance to remain solid.
• Despite the stronger guidance, ADBE shares fell 6.5% to $218.24, reflecting caution from analysts and investors amid broader concerns about competition and the company’s AI growth narrative.

Adobe (NASDAQ:ADBE - Get Free Report) updated its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 6.050-6.100 for the period, compared to the consensus estimate of 5.540. The company issued revenue guidance of $6.7 billion-$6.7 billion, compared to the consensus revenue estimate of $6.5 billion. Adobe also updated its FY 2026 guidance to 24.350-24.450 EPS.

Analysts Set New Price Targets

Several brokerages have recently weighed in on ADBE. JPMorgan Chase & Co. lowered their price target on shares of Adobe from $520.00 to $420.00 and set an "overweight" rating on the stock in a research report on Friday, March 13th. Dbs Bank cut shares of Adobe from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, May 19th. Summit Redstone set a $350.00 price target on shares of Adobe in a research report on Friday, April 17th. Jefferies Financial Group lowered their price target on shares of Adobe from $400.00 to $290.00 and set a "hold" rating on the stock in a research report on Monday, February 23rd. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Adobe in a research report 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 given a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $331.65.

Adobe Trading Down 6.5%

Shares of ADBE stock traded down $15.14 on Thursday, hitting $218.24. 11,446,894 shares of the stock traded hands, compared to its average volume of 5,590,047. The stock has a market capitalization of $88.21 billion, a PE ratio of 12.71, a PEG ratio of 0.93 and a beta of 1.42. Adobe has a twelve month low of $218.34 and a twelve month high of $416.39. The firm's 50-day moving average price is $245.79 and its two-hundred day moving average price is $279.88. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.83 by $0.13. The firm had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. 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, analysts anticipate that Adobe will post 19.14 EPS for the current year.

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

Insider Activity at Adobe

In related news, CFO Daniel Durn sold 1,336 shares of the business's stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $248.02, for a total value of $331,354.72. Following the sale, the chief financial officer directly owned 42,833 shares in the company, valued at approximately $10,623,440.66. The trade was a 3.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Jillian Forusz sold 755 shares of the business's stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the sale, the chief accounting officer owned 3,521 shares in the company, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 77,091 shares of company stock worth $18,782,773. Company insiders own 0.20% of the company's stock.

Adobe News Summary

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

Institutional Trading of Adobe

Institutional investors and hedge funds have recently bought and sold shares of the stock. Compound Planning Inc. increased its stake in Adobe by 52.3% during the fourth quarter. Compound Planning Inc. now owns 5,181 shares of the software company's stock worth $1,813,000 after purchasing an additional 1,779 shares during the period. Axxcess Wealth Management LLC increased its stake in Adobe by 46.5% during the fourth quarter. Axxcess Wealth Management LLC now owns 3,224 shares of the software company's stock worth $1,128,000 after purchasing an additional 1,024 shares during the period. Corient Private Wealth LLC increased its stake in Adobe by 89.6% during the fourth quarter. Corient Private Wealth LLC now owns 430,537 shares of the software company's stock worth $150,684,000 after purchasing an additional 203,494 shares during the period. Strive Financial Group LLC purchased a new stake in Adobe during the fourth quarter worth about $2,535,000. Finally, Blue Sparrow LLC DE purchased a new stake in Adobe during the fourth quarter worth about $17,500,000. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

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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