Is Adobe Stock (ADBE) a Buy Ahead of Earnings?

2026-03-05 02:52:45

Abstract generation in progress

Adobe ADBE +0.79% ▲ is set to report its fiscal first-quarter results on March 12. The stock moved higher in early trading Wednesday after reports that investor Michael Burry has taken a long position. However, shares remain down 39% over the past year and 23% year-to-date. Once seen as a stable leader in creative software, Adobe is now facing investor concerns about competition from generative AI. Ahead of the results, Wall Street analysts remain moderately bullish on the stock.

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What to Watch on March 12

As Adobe is expected to report its results soon, Wall Street analysts expect earnings of $5.86 per share in Q1 FY26, up from $5.08 in the year-ago quarter. Meanwhile, revenue is projected at about $6.28 billion, representing a 10% year-over-year increase.

Management has already signaled a confident outlook for FY26, guiding for about $26.1 billion in revenue and adjusted EPS of around $23.50. That would represent roughly 10% revenue growth and about 12% earnings growth.

During the earnings call, investors will focus on AI growth and subscription trends. Markets want to see whether tools like Firefly are driving higher demand across Creative Cloud and boosting revenue. Analysts will also watch guidance and margins, especially as AI investment costs rise. Clear signals on growth and pricing power could determine the stock’s near-term direction.

Is ADBE Stock a Buy?

Adobe’s stock has a consensus Moderate Buy rating among 27 Wall Street analysts. That rating is based on 13 Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average ADBE price target of $421.52 implies 56% upside from current levels.

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