Adobe raises FY26 guidance and launches $25B buyback, seen as undervalued despite AI fears.

Adobe Inc. raised its fiscal year 2026 revenue and earnings guidance, targeting $26.5–$26.6 billion in revenue and $17.90–$18.00 in GAAP EPS, signaling confidence in continued growth. The company also announced a new $25 billion share buyback program supported by strong free cash flow and the recent Semrush acquisition, which aims to enhance strategic expansion. Despite competition and shifts toward freemium models, concerns about generative AI impacts appear overstated, making Adobe's stock undervalued at current levels. This positions Adobe as a compelling long-term investment with solid growth prospects and shareholder returns.