24/7 Wall Street·15h ago
The Adobe Stock Debate Is About to Get InterestingAdobe beat earnings for the fifth straight quarter, yet the stock sits 31% in the hole for the year while a generative AI rival just torched its retail sentiment.
Adobe is experiencing a revenue growth re-acceleration to 12.9% in Q3 2026, driven by successful execution on its AI product roadmap and strong enterprise demand. However, this top-line momentum is currently being consumed by a strategic pivot into generative ...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has accelerated to 12.9% year-over-year in Q3 2026, but operating margin has compressed to 34.8% as a 21% year-over-year increase in R&D investment outpaces the benefit of an 88.1% gross margin.
Adobe is a leader in enabling customers to create, deliver, and optimize digital content and applications, positioning it at the forefront of digital transformation.
Adobe's business model is characterized by high margins and strong cash generation, supported by its resilient Digital Media and Digital Experience segments.
Adobe maintains a robust balance sheet, providing financial stability and flexibility to invest in growth opportunities.
Trailing total returns as of 10/3/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Sep 10, 2026 | $6.13+0.8% vs $6.08 | $6.8B+1.0% vs $6.7B |
Q3 2026 Jun 11, 2026 | $5.96+2.4% vs $5.82 | $6.6B+2.5% vs $6.5B |
Q2 2026 Mar 12, 2026 | $6.06+3.2% vs $5.87 | $6.4B+1.9% vs $6.3B |
Q1 2026 Jan 15, 2026 | $4.45-17.6% vs $5.40 | $6.2B+1.4% vs $6.1B |
Adobe beat earnings for the fifth straight quarter, yet the stock sits 31% in the hole for the year while a generative AI rival just torched its retail sentiment.
Being right about a technology and right about its stock price are two different trades. AI investors learned that distinction the hard way over the past year.
Enterprise software is leading a rebound across technology stocks, and shares of ServiceNow (NYSE:NOW | NOW Price Prediction) sit at the front of the group. ServiceNow stock is up 4% to $139.
Unity Software (NYSE:U | U Price Prediction) stock rose 5% to $41.56 as traders weighed the company's newly announced day-one support for Meta VR Glasses.
Benchmark ADBE against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Adobe Inc. (ADBE)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $237.69 | $94.48B | 14.23 | 10.53% | 30% | 55.43% | — | |
| $234.69 | $192.21B | 30.09 | 9.58% | 21.99% | 20.15% | — | |
| $517.53 | $3.84T | 28.83 | 17.79% | 40.31% | 33.22% | — | |
| $142.30 | $409.26B | 24.41 | 17.35% | 26.36% | 42.1% | — | |
| $134.38 | $138.93B | 80.47 | 20.88% | 11.34% | 13.77% | — | |
| $281.08 | $76.89B | 20.56 | 15.63% | 21.29% | 23.42% | — |
Adobe Inc. (ADBE) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Adobe Inc. (ADBE) SEC filings — annual & quarterly reports (10-K, 10-Q)
Sep 10, 2026·SEC
Sep 8, 2026·SEC
Jun 11, 2026·SEC
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Adobe Inc. (ADBE) stock FAQ — growth, dividends, profitability & financials explained
Adobe Inc. (ADBE) reported $25.97B in revenue for fiscal year 2025. This represents a 3202% increase from $786.6M in 1996.
Adobe Inc. (ADBE) grew revenue by 10.5% over the past year. This is steady growth.
Yes, Adobe Inc. (ADBE) is profitable, generating $7.28B in net income for fiscal year 2025 (30.0% net margin).
Adobe Inc. (ADBE) has a return on equity (ROE) of 55.4%. This is excellent, indicating efficient use of shareholder capital.
Adobe Inc. (ADBE) generated $10.94B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
