ADBE heads into fiscal Q3 earnings with strong AI and subscription momentum, but freemium pressure, rising investments and stiff competition cloud the outlook.
Adobe has delivered a 30% gain since my 2026 buy rating a few months back, but I am waiting for the next earnings report before reallocating capital. Despite ADBE's attractive forward PEG ratio of 0.78, broader market overextension and high correlation with NDX/SPX warrant caution. I expect ADBE to decline alongside the Nasdaq and S&P 500 if a market correction occurs, especially if triggered by Fed rate hikes.
After a yearslong slump for Adobe's stock, can a new CEO drive a comeback?
2026 Q3 earnings for the S&P 500 index are expected to increase by +23% from the same period last year on +11.2% higher revenues, reflecting the 13th consecutive period of growth. Revisions for the period remain positive, a continuation of the trend we've seen over the past year.
Adobe Inc (NASDAQ:ADBE) shares were down 6.5% on Friday after the company announced a major leadership shake-up, naming Anil Chakravarthy as its next chief executive to succeed longtime CEO Shantanu Narayen. Chakravarthy, currently president of Adobe's digital experience business, will take over as CEO effective December 1, the start of Adobe's fiscal 2027.
An internal CEO pick landing days before an earnings report has Adobe (NASDAQ:ADBE | ADBE Price Prediction) stock sliding on Friday morning while large-cap tech mostly holds its ground. The Invesco QQQ Trust (NASDAQ:QQQ) is up 0.01% to $717.78.
Adobe shares ADBE fell nearly 7% on Friday after the software company announced a leadership transition on Thursday. Anil Chakravarthy, president of Adobe's Customer Experience Orchestration business, will become president and chief executive officer on Dec. 1, 2026.
After a yearslong slump for Adobe's stock, can a new CEO drive a comeback?
Stock futures are mixed ahead of fresh labor market data due this morning; the August jobs report will factor into the Fed's decision later this month on interest rates; auto safety regulators said they're looking into Tesla's cybercab after a launch event yesterday; Lululemon shares are plunging after the retailer lowered its outlook; and Adobe named a new CEO. Here's what you need to know today.
Adobe chose a corporate insider as its next leader, but not the one that many investors were anticipating, according to an analyst.
Anil Chakravarthy has led Adobe's customer experience arm for the past six years and has led the development of several of the company's AI products.
Adobe announced Anil Chakravarthy as its next CEO, replacing Shantanu Narayen, who announced his departure last March. In this article ADBE