Oracle and Adobe are included in the Zacks Earnings Preview

Press Announcement

Chicago, IL – March 9, 2026 – Zacks.com has published its latest list of companies expected to deliver notable earnings surprises. This week, Oracle (ORCL) and Adobe (ADBE) are in the spotlight.

Q1 Earnings Season: Early Highlights

Oracle will announce its quarterly results on Tuesday, March 10, while Adobe is set to report on Thursday, March 12. Both companies are sharing their financial outcomes for the fiscal quarters ending in February, which are included in the March-quarter earnings cycle.

The main focus of the 2026 Q1 earnings season will arrive when major banks release their results in about a month. However, by then, nearly two dozen companies—including Oracle and Adobe—will have already reported their fiscal February-quarter earnings.

AutoZone and Costco were actually the first to kick off the 2026 Q1 reporting season with their February-quarter releases, preceding Oracle and Adobe.

Market Context and AI Developments

Before recent geopolitical tensions in the Middle East drove oil prices higher and dominated market discussions, investor attention was largely centered on advancements in artificial intelligence. Concerns have persisted regarding the significant investments by large technology firms in AI infrastructure, as well as the potential impact of AI on the long-term profitability of software companies.

Both Oracle and Adobe have faced challenges in the market recently. Oracle’s stock has been pressured by its ambitious AI-related spending, while Adobe’s outlook has been clouded by uncertainty about how AI may affect its core business. Over the past year, Oracle and Adobe have underperformed compared to the S&P 500 (up 21.2%) and the Zacks Tech sector (up 30%).

Oracle’s Financial Strategy and Outlook

Oracle is making substantial investments in data centers to support its AI initiatives, but it does not have the same financial resources as industry giants like Microsoft, Alphabet, or Amazon. Oracle’s AI prospects are closely linked to OpenAI, which has committed to using a significant portion of Oracle’s future data center capacity.

Unlike the largest tech firms, Oracle’s capital expenditures exceed its internal cash flow, meaning the company will require external financing for at least the next three years. This creates a dilemma: relying solely on debt could jeopardize Oracle’s investment-grade credit rating, while issuing new shares could dilute existing shareholders’ stakes.

After Oracle’s last earnings report on December 10, shares dropped sharply as funding concerns came to the forefront, despite mixed overall results. Analysts expect Oracle to post earnings of $1.70 per share on $16.89 billion in revenue, reflecting annual increases of 15.7% and 19.5%, respectively. Forecasts have remained steady over the past two months.

Adobe’s Performance Expectations

Adobe is projected to report earnings of $5.88 per share on $6.28 billion in revenue, representing year-over-year growth of 15.8% and 9.9%. While estimates for the February quarter have held steady, projections for the full fiscal year (ending in November) have seen slight downward adjustments.

Broad Earnings Overview

For the first quarter of 2026, S&P 500 companies are anticipated to achieve an 11.4% increase in earnings compared to the previous year, with revenues rising by 8.5%.

It’s important to note that ongoing volatility in the Middle East could impact these optimistic earnings forecasts. Sustained high energy prices would negatively affect both consumers and businesses, so a return to previous energy price levels is crucial for these expectations to be met.

2025 Q4 Earnings Recap

Currently, the reporting cycle is in transition, with the 2025 Q4 season not yet complete even as the 2026 Q1 season begins.

As of Friday, March 6, 493 S&P 500 companies—representing 98.6% of the index—have reported Q4 results. These companies have seen earnings rise by 14.1% and revenues grow by 9.1% year-over-year, with 75.3% surpassing EPS estimates and 72.6% exceeding revenue forecasts.

This week, over 250 companies are scheduled to report, most of which will be counted in the 2025 Q4 results, though some—including Oracle and Adobe—will contribute to the 2026 Q1 figures.

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