Adobe Earnings Loom: Bears See Post-Report Selloff

Adobe (ADBE) shares have seen a slight decline as the company prepares to release its fiscal Q3 earnings on September 10, 2026. Analysts project earnings per share of $4.86, marking a year-over-year increase. Despite recent volatility, the stock has gained over 20% since late June.

Options trading indicates a bearish outlook, with a put-to-call ratio of 1.65x for contracts expiring September 11, 2026, suggesting traders anticipate a decline of nearly 7% by week's end. Technical indicators, including a drop below the 20-day moving average and a low RSI, further point to selling pressure.

However, a closer look at valuation reveals Adobe's stock is more attractively priced than Figma and Salesforce, trading at a price-to-sales multiple of 4.3x compared to Salesforce's nearly 5x and Figma's 9.8x. Insider buying, with approximately 10,000 shares purchased in the last three months, contrasts with only 416 shares sold. This insider activity, coupled with a $25 billion stock buyback plan announced earlier this year, offers a bullish perspective.

Wall Street sentiment heading into the earnings report is mixed, with a consensus 'Hold' rating and a mean price target of $267, suggesting only a 5% potential upside over the next 12 months.