Adobe Inc (NASDAQ:ADBE) looks to beat analyst estimates once again when the company reports third-quarter financial results Thursday after the market closes.
Here are the earnings estimates, what experts are saying, and key items to watch.
Earnings Estimates: Analysts expect Adobe to report third-quarter revenue of $5.91 billion, up from $5.41 billion in last year's third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in two straight quarters and nine of the last 10 quarters overall.
Analysts expect Adobe to report third-quarter earnings per share of $5.18, up from $4.65 in last year's third quarter. The company beat analyst estimates for earnings per share in two straight quarters and in nine of the previous 10 quarters overall.
Adobe expects third-quarter revenue to be between $5.88 billion and $5.93 billion, and earnings per share to land between $5.15 and $5.20.
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What Experts Are Saying: Freedom Capital Markets Chief Market Strategist Jay Woods compared Adobe to Salesforce.
Both companies have consistently beaten analyst estimates for revenue and earnings per share, but the stocks have fallen after financial results. Adobe shares fell after eight of the past nine quarterly earnings reports.
"The pioneer behind Photoshop continues to struggle to grow in a landscape where AI competition can do some of the key things they were known for," Woods wrote in a weekly newsletter.
The stock is in a longer-term downtrend, and rallies should likely be sold until the stock can prove otherwise, Woods says. "The real pressure is to the downside."
Analysts have been lowering their price targets on Adobe stock ahead of the earnings report. Here are recent analyst ratings on Adobe and their price targets:
- Oppenheimer: Maintained Outperform rating, lowered price target from $500 to $460
- RBC Capital: Maintained Outperform rating, lowered price target from $480 to $430
- Mizuho: Maintained Outperform rating, lowered price target from $530 to $460
- Barclays: Maintained Overweight rating, lowered price target from $567 to $460
- UBS: Maintained Neutral rating, lowered price target from $430 to $400
Key Items to Watch: With a string of recent beats, analysts and investors will be looking for the company to beat estimates once again and potentially to raise guidance.
Second-quarter revenue was up 11% year-over-year with digital experience revenue up 10% year-over-year. The company said it had $19.69 billion in remaining performance obligations.
Investors will be looking for strong remaining obligations and year-over-year growth.
Artificial intelligence will be a key topic for investors and analysts. Critics say Adobe is falling behind other tech firms, and AI could be a significant threat to some of its products.
However, the company has highlighted its AI innovation in recent quarters, garnering a 38% upside from the price of $391.37 for JPMorgan analyst Mark R. Murphy.
"We continue to invest in AI innovation across our customer groups to enhance value realization and expand the universe of customers we serve," Adobe CEO Dan Durn said after second-quarter results.
ADBE Price Action: Adobe stock is down 1.49% to $348.78 on Wednesday. Its 52-week trading range is $330.04 to $587.75. Adobe stock is down 20.6% year-to-date in 2025.
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