In the latest close session, Adobe Systems (ADBE) was down 3.1% at $345.63. This change lagged the S&P 500's daily loss of 0.69%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, lost 0.82%.
The software maker's stock has climbed by 5.27% in the past month, exceeding the Computer and Technology sector's gain of 3.71% and the S&P 500's gain of 3.79%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 11, 2025. The company's earnings per share (EPS) are projected to be $5.17, reflecting a 11.18% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.9 billion, reflecting a 9.01% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.63 per share and a revenue of $23.55 billion, indicating changes of +12% and +9.5%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Adobe Systems presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Adobe Systems is currently exchanging hands at a Forward P/E ratio of 17.29. Its industry sports an average Forward P/E of 26.35, so one might conclude that Adobe Systems is trading at a discount comparatively.
Meanwhile, ADBE's PEG ratio is currently 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Adobe Inc. (ADBE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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