Adobe beats earnings but stock falls 33% amid AI competition and leadership changes

Adobe reported strong Q3 earnings with 12.9% revenue growth and its fifth consecutive EPS beat, yet its stock has dropped 33% this year. Investors are concerned about rising competition from generative AI rivals, a CEO transition, and slowed profit growth despite strong sales. Adobe is investing heavily in AI tools and freemium offerings, with over 100 million freemium users, but the market remains cautious until these convert to paying customers. The stock is rated Hold, with potential upside if Q4 results meet guidance and freemium conversions improve, but risks remain if growth slows further.

Adobe stock trades at USD 235.39 on Pluang as of Sep 28, 2026 18:43 WIB, down slightly by 0.03% in one day. The market values Adobe at $93.60 billion with a typical hold time of 154 days on the platform. Despite the stock's 33% drop this year, trading activity remains steady with over 3 million shares changing hands recently.