ADBE Stock Falls After Strong Q3 — Why Are Investors Still Worried?

• Q3 adjusted earnings per share (EPS) came in at $6.13 versus $6.09 expected, while revenue rose 13% YoY to $6.76 billion.
• Q4 revenue guidance came in below the consensus at the midpoint.
• Anil Chakravarthy will replace Shantanu Narayen as CEO on December 1.

Adobe Inc. (ADBE) reported better-than-expected fiscal third-quarter results on Thursday after-hours, but shares fell as the company’s softer Q4 revenue outlook overshadowed the strong quarterly numbers.

ADBE shares fell 2.5% in after-hours trading after fluctuating between gains and losses following the results.

Adobe Beats Q3 Estimates

Adobe posted fiscal third-quarter adjusted earnings of $6.13 per share, ahead of the $6.09 consensus estimate, according to Fiscal.ai. Revenue reached $6.76 billion in Q3 FY2026, up 13% year over year and above the $6.70 billion consensus estimate. Remaining Performance Obligations stood at $22.16 billion exiting the quarter, while current Remaining Performance Obligations were 67%, the company said.

“Adobe delivered record Q3 results, reflecting the strength of our AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience,” said Shantanu Narayen, chair and CEO of Adobe. “Reaching a landmark of more than one billion monthly active users is a defining moment for Adobe, and I have confidence that Anil will build on this momentum to drive Adobe's next chapter of growth and innovation in the AI era.”

Q4 Outlook Misses At The Midpoint

Adobe expects revenue of $6.80 billion to $6.85 billion for the quarter ending in November. The midpoint of the range missed the $6.85 billion consensus estimate.

The company sees Q4 adjusted earnings per share of $6.30 to $6.35, compared with consensus of $6.33.

Adobe also raised its FY26 adjusted EPS outlook to $24.45 to $24.50 from $24.35 to $24.45, above the $24.41 consensus estimate.

The company raised its FY26 revenue outlook to $26.58 billion to $26.63 billion from $26.50 billion to $26.60 billion, compared with the $26.54 billion consensus estimate, according to Fiscal.ai.

AI Concerns And CEO Transition

Investors continue to fret about Adobe’s future in an artificial-intelligence-driven world. AI models are constantly evolving, bringing increased competition for creative software.

Shareholders are also watching Adobe as it prepares for a major leadership transition. Earlier this week, Adobe named internal division leader Anil Chakravarthy as its next chief executive officer, effective December 1.

The decision caught some investors by surprise, as the marketing and analytics software unit Chakravarthy ran is much smaller than Adobe’s flagship creative unit, Bloomberg reported.

ADBE Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for ADBE improved to ‘extremely bullish’ from ‘bullish’ over the past 24 hours, while message volume was ‘high.’

One retail investor said Adobe is “under an existential threat by AI” and added that companies are moving away from Adobe Experience Manager. The investor also criticized Adobe Workfront as an overly bloated product.

Another retail trader took the opposite view, saying, “Beat expectations + raised revenue guidance,” adding that “obviously Adobe's moat is stronger than expected and still growing!”

ADBE stock has lost nearly 30% year to date. 

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