Adobe Stock Stages Rebound as AI Fears Repriced

Adobe ( (ADBE) ) has risen by 8.72%. Read on to learn why.

Adobe shares climbed 8.72% over the past week as investors reassessed the beaten‑down creative software giant ahead of its March 12 fiscal first‑quarter earnings release. The move comes after a brutal stretch in which the stock had fallen sharply on worries that rapid advances in generative AI could erode Adobe’s long‑standing dominance in tools like Photoshop, Acrobat and Creative Cloud. The recent bounce suggests some traders now see the sell-off as overdone, especially with the stock trading near multi‑year low valuation multiples despite continued growth.

Expectations into earnings are robust: Wall Street is looking for first‑quarter revenue of about $6.28 billion, roughly 10% higher than a year ago, and earnings of $5.86 per share. Management has already guided to around $26.1 billion in full‑year FY26 revenue and about $23.50 in adjusted EPS, implying double‑digit growth in both sales and profits. Investors will be watching closely for evidence that Adobe’s own AI platform, Firefly, is boosting demand and helping the company turn the AI threat into a new upselling and productivity opportunity across its subscription base.

Despite the recent 8.72% rebound, sentiment around Adobe remains mixed but cautiously optimistic. Ownership is broadly spread across public investors, ETFs and major institutions like Vanguard, underlining continued long‑term confidence, while sell‑side analysts maintain a Moderate Buy rating with price targets that point to substantial upside from current levels. The key question for the market now is whether Adobe can prove that it remains the core “operating system” for professional content creation in an AI world; any convincing beat-and-raise on March 12, coupled with strong commentary on AI, margins and subscription trends, could fuel further gains from here.