With a market cap of $157.1 billion, Adobe Inc. (ADBE) operates as a technology company worldwide. Founded in 1982, the San Jose, California-based company operates through Digital Media, Digital Experience, and Publishing and Advertising segments. The company’s offerings include products and services that enable individuals, teams, and enterprises to create, publish, and promote content through its Creative Cloud program. ADBE is expected to announce its Q2 results on Thursday, Jun. 12.

Ahead of the event, analysts expect ADBE to report an adjusted profit of $4.01 per share, up 10.5% from the year-ago quarter's profit of $3.63 per share. Moreover, the company has surpassed analysts' earnings estimates in each of the past four quarters.

For the full fiscal 2025, analysts expect ADBE to report an adjusted EPS of $16.58, up 11.3% from $14.90 in fiscal 2024. Additionally, in fiscal 2026, its adjusted earnings are expected to grow 13% year-over-year to $18.74 per share.

Over the past year, ADBE shares dropped 21.6%, underperforming the S&P 500 Index’s ($SPX) 8.7% gains and the Technology Select Sector SPDR Fund’s (XLK) 4.2% returns over the same time frame.

ADBE shares dropped 13.9% in the trading session following the release of its Q1 earnings Mar. 12. The company reported a 10.3% year-over-year increase in its revenue, which came in at $5.7 billion and successfully surpassed the Street's expectations. Moreover, Adobe’s gross profit grew 10.9% from the year-ago value to $5.1 billion, and its non-GAAP operating income rose 10.1% from the previous year’s quarter to $2.7 billion. However, the company’s non-GAAP net income for the quarter grew at a much slower pace, increasing 8.7% year-over-year to $2.2 billion.

Moreover, ADBE's financial outlook remained a bit grim. The company forecasted weaker-than-expected sales and earnings for both Q2 and the full fiscal 2025, which unsettled investor confidence.

Nonetheless, the consensus view on ADBE stock remains optimistic, with a "Moderate Buy" rating overall. Among 33 analysts covering the stock, opinions include 21 "Strong Buys," one "Moderate Buy," 10 "Holds," and one "Moderate Sell." The stock's mean price target of $503.63 represents a 35.8% premium to current price levels.