Adobe Should Use Q3 Results to Boost Visibility Into Fiscal 2027 Monetization, Morgan Stanley Says

11:25 AM EDT, 09/08/2026 (MT Newswires) -- Adobe's (ADBE) focus for its upcoming fiscal Q3 results should be to increase visibility into a fiscal 2027 stabilization path, Morgan Stanley said in a note Tuesday. The company's focus "should be assessing underlying momentum and/or indicators that could increase confidence in a path to ARR growth stabilization/inflection" in fiscal 2027, the note said. A "clear line of sight to stabilizing (and ultimately an inflection) in ARR growth will be needed to drive fundamental investor engagement on the shares," Morgan Stanley said. The investment firm noted fiscal 2026 is a "reset year" for the company as freemium investment and deferred constant currency pricing are weighing on its annual recurring revenue. Morgan Stanley also said it expects Adobe to maintain its fiscal 2026 ARR growth goal of 10.2% year, which would still represent a "decelerating growth trend." Morgan Stanley has an underweight rating on Adobe and $240 price target. Price: 258.04, Change: -8.47, Percent Change: -3.18