Adobe Inc (NASDAQ:ADBE) looks to win over investors when the company reports second-quarter financial results Thursday after market close.
Here are the earnings estimates, what experts are saying ahead of the report and key items to watch.
Adobe Q2 Earnings Estimates
Analysts expect Adobe to report second-quarter revenue of $6.45 billion, up from $5.87 billion in last year's second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in 13 straight quarters.
Analysts expect Adobe to report second-quarter earnings per share of $5.60, up from $5.06 in last year's second quarter.
The company has beaten analyst estimates for earnings per share in 17 straight quarters.
Previous guidance from the company after first-quarter results calls for second-quarter revenue to be in a range of $6.43 billion to $6.48 billion. The company also guided for earnings per share to be in a range of $5.80 to $5.85.
What Experts Are Saying
Freedom Capital Markets Chief Market Strategist Jay Woods reminds investors that Adobe stock has traded lower after nine of its last 11 earnings reports.
"Investors continue to question whether AI is a tailwind or a threat to its core business," Woods said in a weekly newsletter.
Woods said that despite putting up "solid numbers," the stock is struggling.
The market expert says that Adobe has shown generative AI across several business lines like Acrobat, Photoshop and Creative Cloud, but investors want more proof that AI tools aren't hurting the company's key products.
"The company likely needs a beat-and-raise plus a clearer AI story to change sentiment when they report."
Woods said a CEO succession plan is also a key item to watch after longtime CEO Shantanu Narayen previously announced he will step down when a successor is named.
For the Adobe stock chart, Woods sees a good risk-reward set-up heading into earnings.
Here are recent analyst ratings on Adobe stock and their price targets:
- Stifel: Maintained Buy rating, lowered price target from $400 to $350
- TD Cowen: Maintained Hold rating, lowered price target from $310 to $285
- Citigroup: Maintained Neutral rating, raised price target from $253 to $264
- RBC Capital: Reiterated Outperform rating, with price target of $350
Key Items to Watch
Adobe reported revenue up 12% year-over-year in the first quarter, with customer group subscription revenue up 13% year-over-year. The company also ended the first quarter with $22.22 billion in remaining performance obligations.
Adobe CFO Dan Durn said the company was pushing its "AI-powered capabilities" in the future.
Those figures were not enough to boost Adobe stock in the long term, with shares trading near the lows last seen seven years ago, in 2019.
The lack of details on AI growth and the CEO transition spooked investors after the first-quarter results.
Adobe affirmed its full-year revenue and earnings per share guidance. Not raising the totals also likely contributed to a selloff in shares.
As mentioned by Woods above, Adobe likely needs three things to happen on Thursday for the stock to gain. The company likely needs to beat analyst estimates for the second quarter, raise its full-year guidance and provide a more detailed outlook on AI growth.
Details on a new CEO could also make the stock volatile, depending on who the hire is and what the transition timeline looks like
Adobe Stock Price Action
Adobe shares were down 1.67% at $233.91 at the time of publication on Wednesday versus a 52-week trading range of $224.15 to $416.39. Adobe stock is down 29.5% year-to-date in 2026 and down 43.5% over the last 52 weeks.
Photo: Mats Wiklund / Shutterstock
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