PREVIEW: Adobe slides with eyes on new CEO

Adobe

10/09/2026 18:20

** Adobe ADBE.O shares down 1.8% at $250.25 on Thurs ahead of Q3 results after the bell, with investors looking for new CEO's strategy amid rising AI competition
** The software maker is expected to report qtrly rev up 12% to $6.70 bln and adj EPS of $6.09 vs $5.31 yr ago, per LSEG 
** ADBE has beaten estimates on both top and bottom lines for at least eight straight qtrs
** Report is the first under new CEO Anil Chakravarthy, who was appointed last week as the co faces threats to its dominance from AI rivals
** Long-time CEO Shantanu Narayen transitions to executive chair
** In June, ADBE raised its annual rev forecast on strong adoption of AI tools but also announced the departure of its CFO
** Chakravarthy takes charge as Adobe faces disruption from new AI rivals threatening its dominance in design software; Narayen served as CEO for over 18 years
** ADBE shares down 29% YTD stock performance vs 22% jump in S&P 500 tech sector index .SPLRCT and 3% fall in S&P 500 software and services index .SPLRCIS 
** Since new CEO announcement, ADBE shares down ~12% vs ~3% fall in tech index and ~4 dip in software and services index
** Of the 39 analysts that cover ADBE, the breakdown of recommendations is 13 "strong buy" or "buy," 21 "hold" and 5 "sell" ratings
** Median price target of $260 is up from $250 a month ago
** ADBE shares on track to close below 50-day moving avg for first time since July 24
** Stock recently traded at a forward PE of 9, a steep discount to its five-year avg of 24

(Reporting by Chuck Mikolajczak)
((charles.mikolajczak@tr.com; @chuckmik.bsky.social))