Adobe Reports Record User Growth but Faces Skepticism from Wall Street
Adobe Inc. (ADBE) reported a significant milestone in its fiscal third-quarter results, with total users surpassing one billion for the first time and revenue reaching $6.76 billion—up 13% year over year. Despite strong performance metrics such as non-GAAP earnings per share of $6.13 (+15%) and annualized recurring revenue hitting $27.5 billion, Wall Street remained cautious. Morgan Stanley maintained its Underweight rating with a price target of $240—$12 below Adobe’s closing stock price on September 10, 2026. The firm cited concerns over stagnant full-year guidance and slowing growth in remaining performance obligations as key reasons for the lack of enthusiasm. Adobe is also undergoing leadership changes ahead of a strategic shift under new CEO Anil Chakravarthy, who will take office on December 1. Morgan Stanley highlighted this transition along with an interim finance chief and unproven monetization strategy as factors contributing to investor caution.
Topics: Adobe freemium model Morgan Stanley stock rating user growth