Adobe Surpasses One Billion Users but Faces Skepticism From Wall Street
Adobe Inc. (ADBE) reported a significant milestone on September 10, 2026, with its user base surpassing one billion for the first time in company history. The fiscal third-quarter results showed revenue of $6.76 billion and non-GAAP earnings per share rising to $6.13, both up year-over-year. Despite these strong numbers, Morgan Stanley maintained an Underweight rating on Adobe with a price target of $240, unchanged from its July assessment. The analyst firm expressed caution due to stagnant full-year guidance for annualized recurring revenue growth and operating margins, as well as slower-than-expected growth in remaining performance obligations. To meet the year-end targets, Adobe would need nearly double the third-quarter's net new revenue in Q4. The stock closed at $252.23 on September 10, up slightly for the day but still below its 52-week high. Adobe is also undergoing a leadership transition as Anil Chakravarthy prepares to take over as CEO from Shantanu Narayen in December. This change coincides with increased competition and strategic challenges related to AI integration.
Topics: Adobe Morgan Stanley revenue stock rating user growth