Oracle and Adobe Earnings: A Closer Look

The early stages of the Q3 earnings season get underway this week, with Oracle ORCL and Adobe ADBE both scheduled to report quarterly results on Thursday, September 10. The releases will be closely watched given the AI-heavy narratives surrounding both, with investor sentiment showing a back-and-forth nature overall in 2026.  

Oracle Earnings

As expected, Oracle’s cloud business will be the main focus, with AI infrastructure demand driving strong growth in recent quarters.

Its latest period reflected a strong cloud showing, with total Cloud revenue climbing 47% YoY to $9.9 billion. Cloud Infrastructure revenue of $5.8 billion grew 93% YoY, while Remaining Performance Obligations (RPO) also reached a massive $638 billion.

Growth expectations remain strong for Oracle heading into the release, with the current Zacks Consensus sales estimate of $19.1 billion reflecting 28.2% YoY growth. Earnings are also expected to grow in the double digits, with the $1.74 Zacks Consensus EPS estimate suggesting roughly 18% YoY growth from the same period last year.

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The strong RPO figure provides strong visibility concerning future demand, but the key will be how quickly Oracle can convert that backlog into actual revenue. Continued strength in Cloud Infrastructure would help reinforce the AI growth story, particularly following the sizable 93% growth rate posted last quarter.

The spending required to support that demand remains important as well, affecting recent sentiment massively. Oracle has been pouring capital into AI infrastructure and data center capacity, making continued high growth critical as investors weigh the benefits of its aggressive buildout against the high costs.

Adobe AI Monetization

Adobe has continued to post respectable growth despite heavy pressure on shares from AI-related concerns. Results were solid overall in its latest period, with record revenue of $6.6 billion up 13% YoY.

Total Adobe ARR came in at $27.1 billion, while AI-first ARR more than tripled YoY and surpassed $500 million, suggesting its AI offerings are beginning to make a meaningful contribution. Current Zacks Consensus estimates currently call for $6.7 billion in sales and earnings of $6.08 per share, reflecting 11.8% and 14.5% YoY growth, respectively.

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As expected, AI adoption will undoubtedly receive most of the attention. Firefly ARR approached $300 million last quarter, Acrobat AI Assistant ARR nearly tripled, and adoption of Adobe’s agentic capabilities across its enterprise offerings has continued to expand. The biggest question is whether that momentum can increasingly translate into monetization and help ease fears that generative AI will disrupt Adobe’s traditional creative software dominance.

Bottom Line

Oracle ORCL and Adobe ADBE will both report on Thursday, providing investors with two important reads on the evolving AI landscape.

Oracle’s release will primarily revolve around its red-hot Cloud Infrastructure business and how quickly its massive backlog is translating into revenue. Adobe faces a different test, with investors likely focused on whether growing adoption of Firefly, Acrobat AI Assistant, and its broader AI offerings can increasingly translate into meaningful monetization.

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This article originally published on Zacks Investment Research (zacks.com).

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