Adobe Inc. (NASDAQ:ADBE) is set to report fiscal second-quarter results after the closing bell on Thursday, with shares trading near multi-year lows and investors demanding clear evidence that AI-driven tools are translating into revenue growth rather than competitive pressure.

Key Highlights

  • Consensus revenue at $6.45 billion: Market estimates project Q2 revenue of $6.45 billion, up approximately 10% year-on-year from $5.87 billion, which would be the slowest growth pace in three years.
  • EPS expected at $5.81: Adjusted earnings per share are forecast at $5.81, a 15% rise from $5.06 in the year-ago period, per market consensus.
  • Stock down 32% YTD: Adobe shares have fallen approximately 32% year-to-date and more than 40% over the past 12 months, with the stock trading near its lowest levels since 2019.
  • 13-quarter revenue beat streak at stake: Adobe has surpassed revenue estimates in each of the past 13 quarters; Thursday's result will test whether that streak continues amid mounting AI competitive pressure.

Adobe Inc. (NASDAQ:ADBE) reports fiscal second-quarter 2026 earnings after the market close Thursday, with investors focused on whether the creative software giant can demonstrate durable growth in the face of intensifying competition from AI-native design tools.

Market consensus projects Q2 revenue of $6.45 billion against $5.87 billion in the same period a year ago, which would represent growth of approximately 10% and the slowest annual expansion in three years. Adjusted earnings per share are expected at $5.81, a roughly 15% increase from the $5.06 reported in Q2 of fiscal 2025. Adobe's own guidance for the quarter pointed to revenue in the range of $6.43 billion to $6.48 billion and non-GAAP EPS of $5.80 to $5.85.

Options pricing ahead of the report implies a swing of up to 8.5% in either direction by the end of the week, a move that would take shares to as high as $258 or as low as $217, which would represent their lowest level since early 2019.

Adobe shares were trading around $228 Thursday ahead of the report, down roughly 32% year-to-date and over 40% in the past year. The stock has declined in nine of its last 11 earnings sessions, a pattern that has kept sentiment cautious. CEO Shantanu Narayen announced his intention to step down once a successor is named following the Q1 report in March, adding leadership uncertainty to the existing list of investor concerns.

In Q1, Adobe reported 12% year-on-year revenue growth, with AI-first ARR more than tripling and Firefly contributing more than $250 million in ARR, though management maintained rather than raised full-year guidance. Competition from AI-native creative tools continues to weigh on sentiment.

Key metrics to watch include Creative Cloud and Document Cloud subscriber trends, net revenue retention, and second-half guidance. Of 38 covering analysts, 20 rate the stock Hold, 15 rate it Buy or higher, and three rate it Sell, with an average price target of $329.33.