Adobe Before Q3 Earnings: Should You Hold or Fold the ADBE Stock?

Adobe is set to report Q3 FY2026 results on September 10 with expected revenues of $6.67-$6.72 billion and non-GAAP EPS of $6.05-$6.10. The company's AI initiatives including Firefly, Acrobat AI Assistant, and GenStudio are driving growth with AI-first ARR exceeding $500 million. However, intensifying GenAI competition, rising investments, and near-term ARR pressure from freemium strategy expansion present concerns. Adobe shares have underperformed the sector by 23.8% year-to-date but trade at a valuation discount.