Morgan Stanley cut Adobe to underweight on AI disruption. Wall Street sees $6.69B in Q3 revenue. Will Adobe top $6.75B Sept 10?
61% of users predicted NO — the community missed this one. 13 predictions cast.
Adobe reported third-quarter fiscal 2026 results on September 10, 2026, with revenue of $6.76 billion, up 13% year-over-year and above the $6.69 billion Wall Street consensus. Non-GAAP earnings per share came in at $6.13, versus the $6.08 analysts expected. Adobe also said it had surpassed 1 billion monthly active users, up more than 20% year-over-year, and raised its full-year revenue guidance to a range of $26.576 billion to $26.626 billion. The company reported AI-related annualized recurring revenue growing more than 150% year-over-year.
Despite the beat-and-raise report, Adobe shares fell about 2% in regular trading and another 2% after hours, closing near $243.50. The decline reflected lingering investor concern, echoing Morgan Stanley's July 21, 2026 downgrade of Adobe to underweight, over how quickly the company can monetize its AI-driven user growth against competitive pressure on its core Creative Cloud and Document Cloud businesses.
The community had put only 39% odds on Adobe topping $6.75 billion, and the majority view was wrong: revenue cleared that bar even as the stock's negative reaction suggested investors remained more focused on AI disruption risk than on the quarter's numbers.