11:24 AM EDT, 06/05/2026 (MT Newswires) -- Adobe (ADBE) is expected to report solid fiscal Q2 results, and there is potential for annualized recurring revenue stabilization sequentially, while investors wait for ARR re-acceleration year-over-year, RBC Capital Markets said in a Friday note.

Adobe is scheduled to report Q2 results after markets close on June 11.

RBC said total annual recurring revenue is likely to exceed consensus estimate of $26.6 billion and could come close to returning to quarter-over-quarter growth acceleration.

The firm said proving a net benefit from generative AI remains the key factor for improving investor sentiment.

RBC noted Adobe's three Experience Cloud businesses now generate more than $1 billion in annual recurring revenue and are growing more than 20%.

Analysts noted investors will be looking for additional details on generative AI credits, tiered pricing and the impact of consumption-based revenue models on profitability.

RBC maintained its outperform rating and $350 price target on Adobe.

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