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 Analyst Weigh In

Several equities analysts recently issued reports on the company. Wells Fargo & Company reduced their price objective on Adobe from $420.00 to $405.00 and set an “overweight” rating for the company in a report on Monday, March 9th. William Blair cut Adobe from an “outperform” rating to a “market perform” rating in a report on Thursday, March 26th. JPMorgan Chase & Co. reduced their price objective on Adobe from $520.00 to $420.00 and set an “overweight” rating for the company in a report on Friday, March 13th. Jefferies Financial Group set a $230.00 price objective on Adobe in a report on Friday. Finally, Oppenheimer reaffirmed a “market perform” rating on shares of Adobe in a report on Friday, March 13th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, sixteen have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $322.62.

Adobe Price Performance

Shares of NASDAQ:ADBE opened at $218.24 on Friday. The company has a market cap of $88.21 billion, a P/E ratio of 12.71, a P/E/G ratio of 0.91 and a beta of 1.42. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. Adobe has a 52 week low of $218.09 and a 52 week high of $416.39. The business has a fifty day simple moving average of $245.29 and a 200-day simple moving average of $279.13.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating analysts’ consensus estimates of $5.82 by $0.14. The business 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%.The business’s revenue for the quarter was up 12.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Equities research analysts forecast that Adobe will post 19.14 EPS for the current year.

Adobe announced that its Board of Directors has approved a share buyback plan on Tuesday, April 21st that allows the company to repurchase $25.00 billion in shares. This repurchase authorization allows the software company to buy up to 24.9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

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

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe posted record second-quarter revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year FY2026 revenue and earnings guidance. Management said AI tool adoption and higher subscription spending are supporting results. Adobe Reports Record Q2 Results
• Positive Sentiment: The company’s updated outlook topped Wall Street estimates for both Q3 and FY2026, suggesting Adobe still sees room for stronger revenue and profit growth even after a challenging year. Reuters: Adobe raises annual revenue forecast, CFO to exit
• Neutral Sentiment: Adobe is shifting toward a freemium AI strategy and pausing price hikes for now, aiming to boost user growth and engagement in the near term, but this could delay ARR expansion. Adobe pauses price hikes for short-term AI push
• Negative Sentiment: Shares are being weighed down by the sudden departure of CFO Dan Durn, adding to investor concerns about leadership stability as Adobe is also navigating CEO succession plans. Adobe Stock Drops As CFO Dan Durn Resigns
• Negative Sentiment: Broker reaction was cautious after earnings, with Stifel downgrading Adobe and cutting its price target, reflecting skepticism that the AI push will quickly translate into sustained growth. Stifel Downgrades Adobe Stock

Institutional Investors Weigh In On Adobe

A number of institutional investors have recently added to or reduced their stakes in ADBE. AQR Capital Management LLC grew 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 acquiring an additional 920,353 shares during the period. Amundi grew 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 acquiring an additional 742,646 shares during the period. Dodge & Cox grew its position in Adobe by 35.8% during the fourth quarter. Dodge & Cox now owns 2,164,475 shares of the software company’s stock valued at $757,545,000 after acquiring an additional 570,969 shares during the period. State Street Corp grew its position in 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 acquiring an additional 352,448 shares during the period. Finally, Coatue Management LLC grew its position in Adobe by 43.2% during the fourth quarter. Coatue Management LLC now owns 874,150 shares of the software company’s stock valued at $305,944,000 after acquiring an additional 263,529 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.

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.