Adobe (NASDAQ:ADBE) Releases Q3 2026 Earnings Guidance

Adobe (NASDAQ:ADBE) 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.

Wall Street Analysts Forecast Growth

ADBE has been the topic of a number of recent analyst reports. Wells Fargo & Company decreased their target price on Adobe from $420.00 to $405.00 and set an “overweight” rating on the stock in a research report on Monday, March 9th. Stifel Nicolaus decreased their target price on Adobe from $400.00 to $350.00 and set a “buy” rating on the stock in a research report on Monday. BTIG Research initiated coverage on Adobe in a research report on Monday, April 13th. They issued a “neutral” rating on the stock. Oppenheimer reiterated a “market perform” rating on shares of Adobe in a research report on Friday, March 13th. Finally, Summit Redstone set a $350.00 target price on Adobe in a research report on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, seventeen have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $331.65.

Adobe Trading Down 6.5%

Shares of NASDAQ:ADBE traded down $15.14 during midday trading on Thursday, hitting $218.24. 14,254,732 shares of the stock were exchanged, compared to its average volume of 5,595,975. The stock has a market capitalization of $88.21 billion, a price-to-earnings ratio of 12.71, a P/E/G ratio of 0.93 and a beta of 1.42. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. The business’s 50-day moving average price is $245.79 and its 200 day moving average price is $279.88. Adobe has a 12 month low of $218.09 and a 12 month high of $416.39.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, topping the consensus estimate of $5.83 by $0.13. The company had revenue of $6.62 billion for the quarter, compared to analysts’ expectations 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. Analysts predict that Adobe will post 19.14 earnings per share for the current year.

Adobe announced that its board has authorized a stock buyback program on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to repurchase up to 24.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Adobe

In related news, CEO Shantanu Narayen sold 75,000 shares of the company’s stock in a transaction that occurred on Tuesday, April 28th. The stock was 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. This represents a 17.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Daniel Durn sold 1,336 shares of the company’s stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total value of $331,354.72. Following the completion of the sale, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 77,091 shares of company stock worth $18,782,773. Insiders own 0.20% of the company’s stock.

Trending Headlines about Adobe

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 institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC raised its position in Adobe by 2.1% in the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after buying an additional 167 shares during the last quarter. Sivia Capital Partners LLC raised its position in Adobe by 25.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock valued at $926,000 after buying an additional 486 shares during the last quarter. United Bank increased its position in shares of Adobe by 12.8% during the 2nd quarter. United Bank now owns 3,773 shares of the software company’s stock valued at $1,460,000 after purchasing an additional 428 shares during the last quarter. Schnieders Capital Management LLC. raised its stake in shares of Adobe by 7.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after purchasing an additional 190 shares during the period. Finally, Gamco Investors INC. ET AL raised its stake in shares of Adobe by 190.6% during the 2nd quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock worth $1,069,000 after purchasing an additional 1,813 shares during the period. 81.79% of the stock is currently owned by institutional investors.

Adobe Company Profile

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.