Adobe and Salesforce: Why These Beaten-Down Tech Stocks Are Poised for a Strong Rebound in 2026

The technology sector dominated investment headlines throughout 2025, with artificial intelligence fueling optimism heading into 2026. However, not every player in the space participated in the rally. Adobe (ADBE) and Salesforce (CRM), two software giants, both declined roughly 20% during the year—a striking underperformance relative to the broader tech landscape. Yet emerging evidence suggests these overlooked equities may be primed for a powerful comeback this year, with recent quarterly results hinting at renewed momentum beneath the surface.

Adobe’s AI-Powered Growth Engine Accelerates

Adobe’s industry-leading suite—Photoshop, Illustrator, Premiere Pro, and Acrobat—has long defined creative workflows across enterprises and professionals globally. What’s shifting the narrative is the company’s aggressive pivot toward cloud-based delivery and AI-infused capabilities that embed automation and generative features directly into customer workflows.

The stickiness factor cannot be overlooked. Adobe customers become deeply embedded in the company’s ecosystem, creating a natural moat that makes switching costs prohibitively high. This customer loyalty became evident in Adobe’s latest quarterly performance, which delivered record Q4 revenues. For the full fiscal year 2025, the company showcased broad-based momentum across its business segments, translating into robust annual recurring revenue (ARR) growth.

What stands out most is consistency: Adobe has posted double-digit percentage year-over-year sales growth for nine consecutive quarters. This streak underscores the enduring appeal of its AI-driven offerings in an increasingly automation-hungry market. From a valuation perspective, ADBE trades at 14.2x forward 12-month earnings—nearly a 40% discount relative to the S&P 500—suggesting the market has yet to fully price in the company’s growth potential.

Consensus estimates for fiscal year 2026 project 12% adjusted EPS growth, with 2027 forecasted at 13.4%, providing tangible support for a meaningful rebound narrative in Adobe shares.

Salesforce’s Strong Fundamentals Signal Comeback Potential

Salesforce stands as the dominant AI-powered Customer Relationship Management platform globally, enabling organizations to manage customer data, automate sales and marketing operations, and deepen customer engagement at scale. Like Adobe, Salesforce benefits from formidable customer stickiness—once businesses integrate CRM workflows into their operations, departing becomes operationally disruptive.

Recent quarterly results reveal mounting momentum. The company’s remaining performance obligation (RPO)—a forward-looking indicator of committed customer revenue—surged 12% year-over-year to $59.5 billion, signaling robust demand momentum. Operating cash generation also accelerated, climbing 17% year-over-year to $2.3 billion. Management’s shareholder-friendly posture was evident through $3.8 billion in share repurchases and $395 million in dividends during the period.

Most notably, Salesforce raised its fiscal 2026 sales guidance following the earnings release, a significant signal that reversed a negative sales revision trend. The updated outlook projects 9.5% year-over-year sales growth for the current fiscal year—evidence that the perceived gloom surrounding CRM shares may be overdone. This guidance raise historically correlates with sustained upside surprise potential, providing additional reason to monitor CRM closely heading into mid-2026.

A Fresh Opportunity for Stock Recovery in 2026

After languishing throughout 2025, Adobe and Salesforce are displaying the exact characteristics that historically precede meaningful share price recovery. Both companies are benefiting substantially from the AI megatrend, yet market sentiment hasn’t caught up—a classic disconnect that precedes stock reversals.

The evidence is mounting. Strong quarterly earnings, ambitious corporate guidance, generous capital return programs, and clear AI-driven competitive advantages are all converging. These stocks merit close attention in 2026 as compelling comeback opportunities for investors who missed the broader technology rally. With valuations still reasonable and fundamentals strengthening, a rebound in these beaten-down tech stocks could reward patient investors willing to look past 2025’s underperformance.