Adobe shares are down 29.1% year to date, lagging the Zacks Computer and Technology sector's 17.5% gain. Investors are concerned about competition from AI-native creative platforms, uncertain AI monetization, modest recurring revenue growth, profitability pressure and leadership transition. AI-first ARR topped 650 million USD, up more than 150% year over year, yet Adobe expects total ARR growth of 10.2% by the end of fiscal 2026. Fourth-quarter fiscal 2026 revenue guidance is 6.80 to 6.85 billion USD, with a non-GAAP operating margin near 44%, below the fiscal 2026 target of about 45%. The Zacks Consensus Estimate for fiscal 2026 EPS is 24.47 USD, unchanged over 60 days and up 16.86%.
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