Adobe Faces Intensifying Competition Ahead of Q3 Earnings Report

Adobe is set to report its third-quarter fiscal 2026 results on September 10. The company expects total revenues between $6.67 billion and $6.72 billion, with non-GAAP earnings between $6.05 per share and $6.10 per share.

The Zacks Consensus Estimate for revenues is $6.69 billion, representing a growth of 11.75% from the year-ago quarter's reported figure. The consensus mark for earnings has been unchanged at $6.08 per share over the past 30 days, indicating a 14.5% growth from the figure reported in the year-ago quarter.

Adobe has consistently beaten the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.51%. The company's shares have underperformed the broader Zacks Computer and Technology sector, losing 23.8% in the year-to-date period, while its peers such as Microsoft and Alphabet have seen a return of 18.2% and 8.2%, respectively.

Adobe's shift towards freemium offerings is expected to limit near-term ARR growth, but the company's expanding AI portfolio, strengthening enterprise adoption, and growing monetization across Firefly, Acrobat AI Assistant, GenStudio, and AEP support its long-term growth prospects. The Semrush acquisition should further broaden its opportunity across digital marketing and AI-driven search.