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Adobe stock drops 25% despite record revenue and AI growth, raising questions on future earnings.

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26 Oct 2026, 19:45 WIB
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Adobe stock drops 25% despite record revenue and AI growth, raising questions on future earnings.

Adobe's stock has fallen 25% over the past year even as its revenue, earnings, and user base continue to grow strongly. The company posted a record Q3 with $6.76 billion in revenue, beating earnings estimates for five straight quarters, driven by AI-first products and expanding users. However, concerns about AI competition, a CEO change, and margin pressures have kept the stock undervalued at about 10 times next year's earnings. The upcoming Q4 report and freemium user conversion will be key to confirming if Adobe's fundamentals can close the gap with its share price.

Adobe's recent challenges and market skepticism are reflected in its stock performance on Pluang, where as of Oct 27, 2026 00:02 WIB, ADBE trades at USD 254.50, down 3.53% for the day. The stock remains well below its 52-week high of USD 359.91, with a market cap of $102.68 billion. Investors on Pluang typically hold Adobe shares for about 156 days, indicating a moderate-term interest despite the recent price drop.

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