Adobe Targets 10.2% Revenue Growth, EPS $23.47 and Trades at 3.98x Sales
Adobe targets 10.2% recurring revenue growth in fiscal 2026 driven by AI-powered Creative Cloud Pro, Acrobat AI Assistant and Firefly. Consensus EPS for fiscal 2026 is $23.47, unchanged in 30 days, and shares trade at 3.98x forward sales after a 41.1% decline over the past 12 months.
1. Fiscal 2026 Revenue Growth Target
Adobe is targeting 10.2% annualized recurring revenue growth in fiscal 2026, fueled by its expanding AI-powered portfolio that includes Creative Cloud Pro, Acrobat AI Assistant and Firefly, along with deeper integrations through partnerships with AWS, Azure, Google Gemini, Microsoft CoPilot and OpenAI.
2. Consensus EPS and Share Performance
The consensus earnings estimate for fiscal 2026 stands at $23.47 per share, unchanged over the past 30 days and implying 12.1% growth over fiscal 2025, while trailing 12-month share performance has declined 41.1%.
3. Valuation and Underperformance
Adobe shares currently trade at 3.98x forward price/sales, presenting a cheaper valuation than larger peers and reflecting market skepticism amid stiff competition in AI infrastructure and creative software segments.