Adobe Inc. (ADBE) is scheduled to report its first-quarter fiscal 2026 results on March 12. The company projects total revenues between $6.25 billion and $6.30 billion and expects non-GAAP earnings of $5.85 to $5.90 per share. The Zacks Consensus Estimate for revenues is at $6.28 billion, reflecting a growth of 9.92% year-over-year, while the earnings consensus stands at $5.88, indicating a 15.75% increase from the previous year.
Adobe anticipates subscription revenues of $1.74 billion to $1.76 billion from Business Professionals and Consumers, and $4.30 billion to $4.33 billion from Creative and Marketing Professionals. However, Adobe’s shares have dipped 34.8% year-over-year, underperforming the broader Zacks Computer and Technology sector’s 33.6% return and the Zacks Computer Software industry’s 1.6% appreciation.
The company is experiencing stiff competition from AI tools developed by firms like Microsoft and Canva, which is affecting its market position. Adobe’s integration of AI capabilities in its software, such as Acrobat and Express, aims to enhance productivity and document management but may not be sufficient to counter the competitive landscape.
