Adobe (NASDAQ:ADBE) is preparing to release its quarterly earnings on Thursday, 2025-09-11. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Adobe to report an earnings per share (EPS) of $4.79.

The announcement from Adobe is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.09, leading to a 5.32% drop in the share price on the subsequent day.

Here's a look at Adobe's past performance and the resulting price change:

Market Performance of Adobe's Stock

Shares of Adobe were trading at $354.06 as of September 09. Over the last 52-week period, shares are down 39.44%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Take on Adobe

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Adobe.

The consensus rating for Adobe is Outperform, derived from 17 analyst ratings. An average one-year price target of $455.59 implies a potential 28.68% upside.

Comparing Ratings with Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Intuit, AppLovin and Synopsys, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Intuit, with an average 1-year price target of $826.73, suggesting a potential 133.5% upside.
• Analysts currently favor an Outperform trajectory for AppLovin, with an average 1-year price target of $490.82, suggesting a potential 38.63% upside.
• Analysts currently favor an Outperform trajectory for Synopsys, with an average 1-year price target of $614.12, suggesting a potential 73.45% upside.

Snapshot: Peer Analysis

The peer analysis summary presents essential metrics for Intuit, AppLovin and Synopsys, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Adobe is positioned in the top tier among its peers for Revenue Growth, with a growth rate of 10.62%. It also leads in Gross Profit, reporting $5.24B. However, it ranks lower in Return on Equity at 13.78%. Overall, Adobe stands out as a strong performer compared to its peers in this analysis.

Discovering Adobe: A Closer Look

Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing, and engaging with compelling content multiple operating systems, devices, and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).

A Deep Dive into Adobe's Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining Adobe's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.62% as of 31 May, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Adobe's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 28.79%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Adobe's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 13.78%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 5.82%, the company showcases effective utilization of assets.

Debt Management: Adobe's debt-to-equity ratio stands notably higher than the industry average, reaching 0.57. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Adobe visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.