Adobe (ADBE) will report earnings in today’s postmarket after what has largely been a dismal quarter for the tech sector, but especially for the software subsector which faces severe disruption from the rise of artificial intelligence. The Street is looking for $5.88 EPS against $5.08 (+15.7%) last year, and for revenue of $6.28B vs. $5.71B (+9.9%) during the same time frame for the digital media and creative software company. Meanwhile, traders are pricing in a potential expected move of +/- $19.12 (~ 7%) for tomorrow’s Mar. 13 weekly expiration.

A.I. is a potentially revolutionary technology across all types of industries, but growing pains are already evident with companies like Block (XYZ) recently making headlines for laying off about 40% of its workforce in favor of increasing its A.I. implementation efforts. Employers in the U.S. cut 156,742 jobs since the beginning of 2026 with tech trimming the most staff at 33,330 total layoffs in this sector, according to Challenger, Gray & Christmas. The report noted that A.I. was cited in about 12,300 of these cuts, which is about 8% of all layoffs during this period.

This trend is a particularly thorny issue for software companies with the iShares Software ETF (IGV) down about -27.5% from its all-time highs in September. Adobe stands out as one of the worst of the bunch with a loss of about -57% since it made significant highs around 638 in January, 2024. A.I. tools already are sophisticated enough to generate basic code extremely quickly so now the question is, how much staff does the company actually need? But if companies do make the choice to pivot to A.I. and entry-level coding/software jobs dry up, how will the industry develop new talent to take the reins down the road?

Examining the chart, Adobe’s rally off its 52-week lows near 244 stalled out at a notable horizontal level near 284 this week. This represents a prior low from late January and then marked the high after a gap down on Feb. 2, so this stands out as one point of potential resistance. Just above, the aforementioned gap would be filled around 290 and then another set of relative highs comes in around 290.

However, a short-term upward trendline beginning with those same lows remains intact, which would give a supportive boundary of around 276. The yearly Volume Profile study also shows significant trading activity between about 255 and 265, so this could be another point to watch for possible solidification if price takes another downswing.

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