What changed
$ADBE — Designs and markets creative software and cloud services.
🎯 Q1 FY26 | Rev $6B | EPS $6.06 vs $5.87 🟢 | Margin 37.8%
💡 Consensus expects Adobe to maintain high growth in Digital Media and Experience segments, but the recent EPS beat of 3.18% is modest and revenue guidance of $6.43-6.48B for Q2 FY2026 implies only ~10% YoY growth, below historical rates.
🏢 Business Quality: 8/10 | Valuation: rich
📉 Reward/Risk: Upside 15% (to $270 on AI monetization acceleration) vs downside 25% (to $180 on growth deceleration and multiple compression). Ratio: 0.6x, unfavorable.
🔮 Catalyst: Q2 FY2026 earnings report (late June 2026): Watch Digital Media ARR growth and Experience Cloud revenue. Failure signal: ARR growth below 12% or Experience Cloud revenue miss.
💰 Entry: Current price $0 is not meaningful; based on float market cap ~$97B and ~411M shares, implied price ~$236.
Also in play: $CRM $ADSK $NOW $WDAY $ORCL $AMZN