Adobe’s Q1 FY26 Earnings Preview: AI Crossroads for Creative Software Giant
Adobe enters its March 12 earnings report battered by a 20% YTD stock decline, with Wall Street anticipating $5.87 EPS (+15.5% YoY) and $6.28B revenue (+10% YoY). The company's guidance aligns closely with these projections, but the real debate centers on generative AI's disruptive potential.
Citi's price target cut to $315 reflects sector-wide multiple compression, while Barclays maintains a Buy rating at $335. The consensus Moderate Buy rating and $415 average target suggest 46% upside potential, hinging on whether Firefly AI drives premium subscriptions or erodes Adobe's creative software moat.