Adobe stock seen rising 16.5% despite 28% drop, driven by strong AI growth and raised earnings guidance.

Adobe's stock has fallen nearly 28% this year but continues to beat earnings estimates and raise guidance, suggesting the market may be undervaluing its AI-driven growth potential. The company reported a 12.9% revenue increase in fiscal Q3 and raised its full-year EPS guidance. Adobe's AI-first annual recurring revenue is growing rapidly, and the company is expanding its user base with plans to raise prices later. Analysts give the stock a buy rating with a 16.5% upside target, though some remain cautious due to slower net new ARR growth. Leadership changes and strong capital returns add to the positive outlook, positioning Adobe for potential gains if it can monetize AI adoption effectively.

Adobe's stock price stands at USD 243.83 on Pluang as of Oct 19, 2026 18:43 WIB, down 0.56% for the day. Despite a nearly 28% drop this year noted in the article, the stock remains actively traded with a volume of 3,919,180 shares and a market cap of $95.43 billion. This trading activity highlights ongoing investor interest as the company navigates its AI-driven growth and leadership changes.