Adobe shares down 18% YTD as Q1 earnings loom with analyst upgrades
Adobe's shares have fallen 18% year-to-date as it prepares to report first-quarter earnings after market close on March 12, with analysts revising EPS forecasts upward. Despite this underperformance, the company is flagged as a potential bargain buy due to robust revenue growth and free cash flow.
1. YTD Stock Performance
Adobe's stock has declined roughly 18% in 2026 through March 12, underperforming major tech peers as investors weigh AI-driven growth prospects. The downturn precedes its first-quarter results following a period of broad S&P 500 earnings growth.
2. Analyst Forecast Revisions
In the lead-up to the earnings release, several top analysts adjusted their first-quarter EPS and revenue forecasts, reflecting expectations for AI tool integration and subscription upticks. Upward revisions suggest confidence in Adobe's ability to leverage AI features to drive sales.
3. Bargain Buy Rationale
Despite recent share underperformance, Adobe is highlighted alongside ServiceNow and Netflix as a bargain-buy candidate based on strong fundamentals. The company’s robust revenue growth, substantial free cash flow and attractive valuation metrics underpin its inclusion on bargain lists.