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flag Adobe beat earnings estimates but stock dropped on settlement, leadership change, and downgrades.

flag Adobe reported stronger-than-expected Q1 earnings on March 12, 2026, with $6.06 EPS and $6.40 billion in revenue, up 12% year-over-year, and raised its FY2026 guidance. flag Despite solid results and AI-driven recurring revenue growth, the stock fell due to a $150 million settlement over alleged deceptive subscription practices, CEO Shantanu Narayen’s planned exit, and multiple analyst downgrades. flag The company reaffirmed its outlook, but investor sentiment remained cautious amid leadership transition and sector-wide softness, with the stock trading near a 52-week low.

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