Adobe (NASDAQ:ADBE) is gearing up to announce its quarterly earnings on Wednesday, 2025-12-10. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Adobe will report an earnings per share (EPS) of $4.99.
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.
Earnings History Snapshot
In the previous earnings release, the company beat EPS by $0.52, leading to a 0.34% drop in the share price the following trading session.
Here's a look at Adobe's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 4.79 | 4.97 | 4.97 | 4.66 |
| EPS Actual | 5.31 | 5.06 | 5.08 | 4.81 |
| Price Change % | 0.00 | -5.00 | -14.00 | -14.00 |
Performance of Adobe Shares
Shares of Adobe were trading at $339.12 as of December 08. Over the last 52-week period, shares are down 38.33%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Views on Adobe
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Adobe.
Analysts have given Adobe a total of 14 ratings, with the consensus rating being Outperform. The average one-year price target is $431.5, indicating a potential 27.24% upside.
Comparing Ratings with Competitors
The below comparison of the analyst ratings and average 1-year price targets of Intuit, Cadence Design Systems and Synopsys, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Intuit, with an average 1-year price target of $843.75, suggesting a potential 148.81% upside.
- Analysts currently favor an Outperform trajectory for Cadence Design Systems, with an average 1-year price target of $361.0, suggesting a potential 6.45% upside.
- Analysts currently favor an Outperform trajectory for Synopsys, with an average 1-year price target of $551.67, suggesting a potential 62.68% upside.
Peer Analysis Summary
The peer analysis summary offers a detailed examination of key metrics for Intuit, Cadence Design Systems and Synopsys, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Adobe | Outperform | 10.72% | $5.35B | 15.26% |
| Intuit | Outperform | 18.34% | $3.00B | 2.29% |
| Cadence Design Systems | Outperform | 10.15% | $1.16B | 5.63% |
| Synopsys | Outperform | 14.03% | $1.36B | 1.29% |
Key Takeaway:
Adobe ranks at the top for Revenue Growth among its peers. It also leads in Gross Profit and Return on Equity.
All You Need to Know About Adobe
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).
Key Indicators: Adobe's Financial Health
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Over the 3 months period, Adobe showcased positive performance, achieving a revenue growth rate of 10.72% as of 31 August, 2025. This reflects a substantial increase in the company's 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 29.59%, 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 15.26%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Adobe's ROA stands out, surpassing industry averages. With an impressive ROA of 6.23%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Adobe's debt-to-equity ratio surpasses industry norms, standing at 0.56. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
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.
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