Adobe is set to report fiscal first-quarter results after market close, with analysts forecasting EPS of $5.87, up 15.6% from a year ago, and revenue of $6.28 billion, a 10% rise. Beating both top- and bottom-line estimates for 13 consecutive quarters, the company aims to extend its strong earnings track record.

Adobe’s recent updates show AI-influenced annual recurring revenue now exceeds one-third of total business, underscoring the strategic pivot toward AI-powered features in Creative Cloud and Document Cloud. Continued investment in generative AI tools is expected to drive higher subscription uptake and margin expansion.

Despite consistent earnings beats, Adobe’s share price has fallen roughly 38% over the past year amid rising competition from new AI platforms and pricing pressure. Investors are watching to see if upcoming results can reassure the market and reverse the downtrend.

Market participants anticipate elevated volatility around the earnings release as traders position for potential guidance updates on AI revenue targets and cost management. A strong report could trigger a sharp rebound, while any cautious commentary on AI spending may extend the stock’s weakness.