Adobe Inc (NASDAQ:ADBE) looks to give investors a reason for a share rebound when it reports third-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 Q3 Earnings Estimates
Analysts expect Adobe to report third-quarter revenue of $6.69 billion, up from $5.99 billion in last year’s third quarter, according to data from Benzinga Pro.
The company beat analyst estimates for revenue in six straight quarters and in nine of the last 10 quarters overall.
Analysts expect Adobe to report third-quarter earnings per share of $6.09, up from $5.31 in last year’s third quarter.
The company has beaten analyst estimates for earnings per share in six straight quarters and in nine of the last 10 quarters overall.
What Experts are Saying
Freedom Capital Markets Chief Market Strategist Jay Woods cautions that Adobe shares have struggled after recent earnings.
"They have only traded higher twice out of [their] last 12 quarterly reports. The average move has been +/- 5.6%," Woods wrote in a weekly newsletter.
Adobe stock is down 23% year-to-date, and as Woods points out, the stock is down 70% from its March 2024 three-year high.
Woods also highlights that Adobe has lost its Chief Executive Officer and Chief Financial Officer in the last six months, recently naming a CEO replacement.
"When they report, they don’t just need an earnings beat, they need to change the narrative, as Wall Street continues to question whether AI is an opportunity or an existential threat to its future growth."
Woods said investors "need a reason to believe again."
Looking at the technicals for Adobe stock, Woods says the "upside appears far greater."
"Risk/reward definitely skews to taking a shot at that upside potential."
Here are recent analyst ratings on Adobe stock and their price targets:
- Stifel: Maintained Hold rating, raised price target from $200 to $225
- Barclays: Maintained Equal-Weight rating, raised price target from $250 to $295
- RBC Capital: Maintained Outperform rating, raised price target from $285 to $315
- Citigroup: Maintained Neutral rating, raised price target from $228 to $301
Key Items to Watch
Adobe recently named Anil Chakravarthy as its new CEO effective Dec. 1. Chakravarthy currently leads Adobe’s Customer Experience business. The new CEO is said to have the experience to lead Adobe in the AI-driven era.
Chakravarthy has been with Adobe since 2020. Before that, he served as CEO of Informatica for four years. Past work experience also includes roles at Symantec, VeriSign and McKinsey & Co.
News of Chakravarthy’s hiring as CEO didn’t excite investors, with Woods writing that the stock sold off 6.7% on the news.
Adobe’s second-quarter results showed revenue up 13% year over year and total annualized recurring revenue tripling year over year.
The company also reported $22.27 billion in remaining performance obligations at the end of the second quarter. Investors and analysts will be looking for that figure to grow in the new quarter.
With concerns of AI replacing Adobe products, investors and analysts will also be looking for commentary on "AI-driven demand." The company cited strong AI-driven demand in the second quarter, leading to higher full-year guidance.
A beat and a raise are likely the minimum to excite investors about the future, given concerns over AI and the company’s management turnover.
Adobe Stock Price Action
Adobe stock is down 0.6% to $255.65 on Wednesday versus a 52-week trading range of $190.12 to $370.86. Adobe stock is down 23.3% year-to-date in 2026.
Photo: jejim / Shutterstock
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