Adobe Q3 Earnings Preview: Revenue and AI Adoption Focus
Adobe enters its fiscal Q3 report with a track record of beating expectations, despite underperforming the broader software sector by a wide margin over the last month. As the first peer to report, the company faces an 11.8% revenue growth target with analysts maintaining steady estimates in the absence of comparable market data.
GN markets/earnings (en-US) highlights that Adobe is the first major vertical software peer to report, leaving investors without comparable sector benchmarks to gauge performance. The outlet notes that while the broader software segment is down just 1.5% over the past month, Adobe has lagged significantly with a 6.1% decline.
Source: GN markets/earnings (en-US)GN markets/earnings (en-US) confirms that analysts have largely maintained their estimates over the past month, indicating expectations for the business to continue its current trajectory. The report also notes that Adobe holds a consistent history of outperforming Wall Street's consensus figures.
Source: GN markets/earnings (en-US)According to GN markets/earnings (en-US), analysts are expecting Adobe's revenue to grow 11.8% year-over-year, an acceleration from the 10.7% growth seen in the same period last year. The source notes that while peer vertical software stocks have declined by an average of 1.5% over the past month, Adobe shares have dropped 6.1%, highlighting its relative underperformance ahead of the report.
Source: GN markets/earnings (en-US)According to GN markets/earnings (en-US), Adobe’s stock has lagged the broader tech sector by 23.8% year-to-date despite a track record of beating consensus estimates in the last four quarters. The report highlights that while Semrush added roughly $480 million in ARR, aggressive freemium strategies and rising AI investments from competitors like Microsoft and Canva are pressuring near-term profitability and growth expectations.
Source: GN markets/earnings (en-US)Adobe reports fiscal Q3 results on Sept. 10 with revenue guidance of $6.67B-$6.72B and non-GAAP EPS of $6.05-$6.10, driven by subscription strength and AI integration despite sector underperformance.
Source: GN markets/earnings (en-US)
