Adobe: Alpha Opportunity Given Triple-Digit AI-First ARR Growth

The Asian Investor 33.18K Followers Follow Summary Adobe delivered record Q3 results, beating revenue and EPS estimates, driven by robust AI product momentum and strong MAU growth. Adobe's AI-first business achieved over $650 million in annual recurring revenues, supporting triple-digit ARR growth and strong gross profit growth. Shares trade at a compelling 9.1x FY2028 P/E, about half their 3-year average, with a $25B buyback underway and significant revaluation potential. I see 108% upside to a $525 fair value if AI-driven ARR expansion continues and gross margins remain above 80%. akinbostanci/E+ via Getty Images Adobe ( ADBE ) reported better-than-expected results for its third fiscal quarter on September 10, 2026 amid strong MAU growth and consistent expansion in its remaining performance obligations. Adobe is seeing especially strong momentum with its AI product This article was written by The Asian Investor 33.18K Followers Follow I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADBE, ORCL, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.