Adobe Systems (ADBE) closed at $257.16 in the latest trading session, marking a -2.84% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.16%.
Shares of the software maker witnessed a loss of 14.6% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.54%, and the S&P 500's loss of 0.28%.
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 March 12, 2026. In that report, analysts expect Adobe Systems to post earnings of $5.88 per share. This would mark year-over-year growth of 15.75%. At the same time, our most recent consensus estimate is projecting a revenue of $6.28 billion, reflecting a 9.92% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.47 per share and revenue of $26.04 billion, which would represent changes of +12.08% and +9.54%, respectively, from the prior year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Adobe Systems presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 11.28. This valuation marks a discount compared to its industry average Forward P/E of 18.72.
Meanwhile, ADBE's PEG ratio is currently 0.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.53.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% 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.
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Adobe Inc. (ADBE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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