Markets· August 16, 2026 at 07:28 p.m.
Adobe Stock Trades at 10 Times Next Year's Earnings: Is It Time to Buy?
Key takeaways
- Adobe reported record revenue of $6.62 billion in Q2 of FY 2026
- The stock trades at about 10 times next year's expected earnings
- Growth was broad across both business and consumer groups
In Q2 of Adobe's fiscal year 2026, the company reported a record revenue of $6.62 billion, marking a 13% increase year over year. The growth was broad across both business and consumer groups. However, the stock trades at about 10 times next year's expected earnings, suggesting a potential decline may be imminent. This discrepancy between price and results could indicate that Adobe is either a declining business or an undervalued growth stock.
