Adobe čeká výsledky za 3. čtvrtletí a investoři sledují, zda AI a Firefly přinesou vyšší monetizaci. Akcie jsou před reportem o 26 % níže od začátku roku.
Noted software company Adobe (ADBE -3.47%), maker of creative software tools such as Photoshop, Illustrator, and Premiere Pro, faces a critical week as it prepares its third-quarter earnings report after the market closes Sept. 10.
Adobe is at a crossroads as artificial intelligence reshapes the landscape of its business. Will AI's threat to traditional creative tools continue to weigh on the stock, or can Adobe make up some of the ground with its Firefly generative AI tools?
After a roller-coaster start to the year, Adobe stock is down 26% heading into earnings. Here's what investors should be looking for when Adobe steps up to the podium.
Image source: Getty Images.
About Adobe stockAdobe, which is based in San Jose, California, is a leading software company that derives much of its revenue from subscriptions to its flagship Creative Cloud ecosystem. The company's digital media business works with small businesses to create content for smartphones, e-readers, and other devices, and its target customers have been content creators, web designers, and digital media professionals.
The challenge for Adobe has been the rise of artificial intelligence, particularly generative AI tools. Before AI, a graphic designer would use Adobe's powerful media tools to change the background of an image, remove or add content, or otherwise manipulate the image. But generative AI has changed the landscape -- now anyone can enter a detailed prompt into one of many powerful AI engines to alter images or create entirely new content.
Warning flags for Adobe stock began flashing in early 2024, when the company issued weaker-than-expected guidance for the second quarter. The stock fell 11% in a single day, and investors began questioning if generative AI tools, such as OpenAI's Sora, would compete with and eventually surpass Adobe's software.
Meanwhile, companies such as Figma and Canva are threatening to cut into Adobe's market share. Canva now has more than 260 million users, and is particularly popular in classrooms. Figma has an estimated 13 million users, most of whom are outside the U.S.
Adobe's solution is FireflyOne of the best ways to combat an AI product is to develop your own, and that's what Adobe has done with Firefly -- a generative AI model that allows users to create graphics, images, and text effects from written prompts. Adobe incorporated Firefly into its Creative Cloud apps, such as Illustrator and Photoshop.
But the stock continued to fall as analysts criticized the company for focusing too heavily on Firefly adoption rather than generating meaningful revenue from the product.
ADBE data by YCharts
Time may prove that Adobe had the right strategy, however. The company reported AI-first annualized recurring revenue (ARR) of $500 million in the second quarter, tripling year over year. "We believe now is the time to aggressively acquire the next generation of Adobe loyalists," CEO Shantanu Narayen told analysts in June.
Overall, Adobe reported revenue of $6.62 billion in the second quarter, up 13%, and total ARR of $27.10 billion, including about $480 from the company's recent acquisition of Semrush. Diluted earnings per share were $4.25 on a GAAP basis.
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What should investors look for in Adobe's earnings on Sept. 10?Adobe is walking a narrow line. Analysts want to see greater monetization from AI, but management knows it needs to offer a freemium product to entice new users to try its platform rather than using Claude, OpenAI, Grok, or another service.
"The proliferation of media generation models is reshaping and democratizing content workflows from ideation through delivery," Narayen said. "AI-first applications that will serve broader audiences need to provide free, intuitive onboarding that drives usage and monetization through paywalls. Big picture, the immediate opportunity for Adobe is to accelerate new user acquisition and lifetime value through a freemium offering."
A successful quarter means threading the needle: Adobe shows substantial growth in its AI business while also increasing engagement through its freemium products. And it needs to do so while undergoing a major C-suite transition -- Narayen announced in March that he would step down this year, and Anil Chakravarthy, president of Adobe's customer experience orchestration business, will become CEO on Dec. 1 as Narayen becomes executive chair. Adobe is also looking for a new chief financial officer, as Dan Durn moved to Marvell Technology in June.
While I believe in Adobe's strategy, today's stock market is very much driven by a "show-me" mentality that rewards results over long-term planning and potential. For that reason, I'm expecting Adobe stock to slip after its earnings report on Sept. 10.
Adobe jmenovalo Anila Chakravarthyho novým CEO s nástupem 1. prosince; Shantanu Narayen přejde do role výkonného předsedy. Akcie po oznámení klesly o 6,7 %.
Adobe (ADBE -6.73%) has picked its next CEO. The company said on Sept. 3 that Anil Chakravarthy, the insider who runs its customer experience orchestration business, will become president and CEO on Dec. 1.
Shantanu Narayen, who has run Adobe since 2007, will move to executive chair the same day. The news landed after the market closed, and shares fell 6.7% the next day to $266.51 as of this writing -- about 28% below the stock's 52-week high.
A change at the top is rare here: Adobe has handed the CEO job over exactly once in the past 19 years. Bruce Chizen resigned as CEO as of Nov. 30, 2007, and Narayen (then Adobe's president and chief operating officer) took over the next day.
Chakravarthy steps in 19 years later to the day.
Here's what the stock did after that first handover.
Image source: Getty Images.
The last handover came at a terrible timeThe Adobe that Chizen passed along was thriving. Fiscal 2007 revenue rose 23% year over year to about $3.2 billion, and net income climbed 43% to about $724 million.
But the business ran on software licenses back then. Customers bought Creative Suite and Acrobat outright, and revenue depended on their appetite for the next upgrade.
That appetite was about to vanish. Narayen's first trading day as CEO ended with the stock at about $42.
Twelve months later, shares closed at $21, a loss of about half. They went on to trade below $16 by March 2009. Two full years after the handover, the stock still sat around $36, down about 15%.
Was the new CEO the problem?Narayen had little to do with that first-year collapse, in my view. After all, the Great Recession began in December 2007, the very month he took over. The S&P 500 (^GSPC -0.38%) itself lost about 45% during his first 12 months.
Adobe's business model made a bad stretch worse. When corporate budgets froze, customers skipped the upgrade, and the damage showed up on a delay. Revenue growth decelerated to 13% in fiscal 2008. Then revenue fell 18% in fiscal 2009 to about $2.9 billion, and net income dropped by more than half that year.
Zooming out makes the same point. From about $42 at the handover, shares have gained more than 500% over Narayen's nearly 19 years. And the company he hands over is targeting $26.5 billion to $26.6 billion of revenue this fiscal year -- more than eight times fiscal 2007's total.
The next CEO starts in a better spotThe differences this time mostly favor the incoming CEO. Narayen isn't leaving. Chizen, by contrast, exited the top job and stayed on as a strategic advisor for a year.
Narayen also telegraphed the change back in March, saying he would step down once the board picked a successor. And Chakravarthy, for his part, ran Informatica as its CEO from 2015 to 2020 before joining Adobe.
The business is arguably stronger, too.
Chakravarthy takes over $27.1 billion of annualized recurring revenue. In Adobe's fiscal second quarter of 2026, which ended May 29, revenue grew 13% year over year, reaching a record $6.62 billion. Management raised its full-year targets in June.
Another recession could still hurt. But subscription revenue doesn't vanish the way skipped upgrades did in 2008.
Not everything favors him, though. Friday's sell-off wasn't only about who got the job. David Wadhwani, who ran Adobe's creativity and productivity business and was reportedly a contender for the job, is leaving the company.
And the worry that artificial intelligence will disrupt software makers, which has weighed on the stock since 2024, hasn't gone anywhere. Narayen, not Chakravarthy, will still be CEO for Thursday's fiscal third-quarter report, due Sept. 10.
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Ultimately, I think this record says more about entry prices than about new CEOs. Investors who bought shares on Narayen's first trading day as CEO paid about 26 times adjusted earnings for the fiscal year that had just ended, right as a recession was starting. Today, shares sell for about 9.5 times the fiscal 2027 earnings that analysts project, even though revenue is still growing at a double-digit rate.
Of course, Chakravarthy could still stumble, and the executive departures add uncertainty. But the last handover suggests the first year gets decided by the economy and the starting valuation, not the new CEO.
I wouldn't sell Adobe over this transition. If anything, at this price, I'd rather buy than sell.
Amundi ve 2. čtvrtletí zvýšila podíl v Adobe o 11 % na 5 242 464 akcií v hodnotě 1,07 miliardy USD. Amundi nyní drží přibližně 1,32 % akcií Adobe. Institucionální investoři nyní drží 81,79 % akcií.
Amundi grew its position in Adobe Inc. (NASDAQ:ADBE – Free Report) by 11.0% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 5,242,464 shares of the software company’s stock after acquiring an additional 518,362 shares during the period. Amundi owned about 1.32% of Adobe worth $1,074,810,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors also recently made changes to their positions in ADBE. SWAN Capital LLC lifted its position in Adobe by 43.1% during the third quarter. SWAN Capital LLC now owns 103 shares of the software company’s stock worth $36,000 after acquiring an additional 31 shares during the last quarter. Logan Capital Management Inc. lifted its holdings in shares of Adobe by 0.3% during the third quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company’s stock worth $3,453,000 after buying an additional 32 shares in the last quarter. Vista Capital Partners Inc. boosted its position in shares of Adobe by 5.8% in the second quarter. Vista Capital Partners Inc. now owns 624 shares of the software company’s stock valued at $241,000 after acquiring an additional 34 shares during the period. Murphy & Mullick Capital Management Corp boosted its position in shares of Adobe by 5.1% in the fourth quarter. Murphy & Mullick Capital Management Corp now owns 827 shares of the software company’s stock valued at $289,000 after acquiring an additional 40 shares during the period. Finally, Front Street Capital Management Inc. grew its stake in shares of Adobe by 8.2% in the second quarter. Front Street Capital Management Inc. now owns 541 shares of the software company’s stock valued at $209,000 after acquiring an additional 41 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth Several brokerages have weighed in on ADBE. Piper Sandler dropped their price objective on shares of Adobe from $280.00 to $240.00 and set a “neutral” rating for the company in a research note on Friday, June 12th. BMO Capital Markets decreased their target price on shares of Adobe from $285.00 to $230.00 and set a “market perform” rating on the stock in a research report on Friday, June 12th. Weiss Ratings raised shares of Adobe from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, September 1st. Citizens Jmp reiterated a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. Finally, Evercore set a $225.00 price target on Adobe and gave the company an “in-line” rating in a research note on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $278.72.
Read Our Latest Report on ADBE Adobe Stock Performance Shares of Adobe stock opened at $266.51 on Monday. The company has a 50 day moving average of $249.19 and a 200-day moving average of $245.68. Adobe Inc. has a 1-year low of $190.12 and a 1-year high of $370.86. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. The company has a market cap of $105.94 billion, a PE ratio of 15.25, a price-to-earnings-growth ratio of 0.93 and a beta of 1.42.
Adobe (NASDAQ:ADBE – Get Free Report) last posted its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same quarter last year, the business posted $5.06 EPS. The firm’s revenue for the quarter was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, equities research analysts forecast that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.
Key Stories Impacting Adobe Here are the key news stories impacting Adobe this week:
Positive Sentiment: Adobe raised Anil Chakravarthy, president of its Customer Experience Orchestration business and worldwide field operations, to president and CEO effective December 1. Chakravarthy has overseen several AI products, while longtime CEO Shantanu Narayen will become executive chair, potentially supporting continuity as Adobe accelerates its AI strategy. Adobe Announces CEO Transition Positive Sentiment: RBC raised its price target to $315 from $285 and maintained an Outperform rating ahead of Adobe’s fiscal third-quarter results, citing the potential for annual recurring revenue to exceed expectations. Adobe reports on September 10, making recurring-revenue growth a key near-term catalyst. RBC Raises Adobe Price Target Positive Sentiment: Adobe expanded its AI and marketing ecosystem by acquiring Indian startup Rilo and integrating more than 70 creative tools—including Photoshop, Firefly and Acrobat—into Slack. These initiatives could improve workflow integration and strengthen enterprise adoption. Adobe Launches Slack App Neutral Sentiment: Analysts remain divided ahead of earnings: some see valuation upside if ARR reaccelerates, while others maintain Hold ratings because Adobe must demonstrate that its AI investments can revive growth and support a higher multiple. Negative Sentiment: The CEO announcement surprised investors because it came shortly before earnings and selected Chakravarthy rather than another business leader some investors reportedly expected. Reports also pointed to a separate executive departure, raising concerns about further leadership turnover. Why Adobe Stock Is Dropping Negative Sentiment: Adobe continues to face fears that AI-native rivals and new tools from major technology companies could pressure its creative-software franchise, user growth and pricing power. Stronger employment data also increased expectations for a hawkish Federal Reserve, weighing on software and other growth stocks broadly. U.S. Stocks End Lower Insider Activity In other news, CAO Jillian Forusz sold 416 shares of the stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the completion of the transaction, the chief accounting officer owned 3,824 shares of the company’s stock, valued at approximately $1,010,797.92. This represents a 9.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director David Ricks purchased 10,000 shares of Adobe stock in a transaction dated Thursday, June 25th. The stock was bought at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the purchase, the director owned 17,655 shares in the company, valued at $3,434,074.05. This represents a 130.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.20% of the stock is currently owned by insiders.
Adobe Company Profile (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
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Adobe jmenoval Anila Chakravarthyho novým CEO s nástupem 1. prosince; nahradí Shantanu Narayena. Akcie Adobe v obchodování po uzavření trhu klesly asi o 2 %.
Adobe on Thursday named Anil Chakravarthy as its next CEO, succeeding Shantanu Narayen, who announced he would step down earlier this year.
Chakravarthy, who most recently served as president of Adobe's customer experience orchestration and worldwide field operations, will take the helm Dec. 1, the company said. He will also join Adobe's board.
Narayen will become executive chair and "work closely" with Chakravarthy during the transition, Adobe said. Narayen said last March he would leave his role after joining the company in 1998 and serving as the head of Adobe for 18 years.
"Adobe's opportunity ahead is limitless with our track record in creating new market vategories and world-class products," Narayen said in a statement. "Anil is an experienced transformational leader who leads with values, integrity and a deep knowledge of our business."
Shares of Adobe fell about 2% in extended trading.
This is breaking news. Please refresh for updates.
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Adobe zpřístupňuje své aplikace přímo ve Slacku přes Slackbot a Adobe for Slack MCP app. Integrace bude při spuštění dostupná týmům Slack Business+ a Enterprise+.
Customers can now use Adobe’s apps like Firefly, Adobe Express, Photoshop, Premiere, Acrobat, InDesign, Illustrator, Stock, Lightroom, and others directly with Slack’s AI chatbot, Slackbot, Adobe announced on Monday. In addition, more than 70 Adobe tools will become available in Slack through the Adobe for Slack MCP app.
With the Slackbot integration, users will be able to describe what they want to do, and the bot will call the right Adobe tool to complete the task. Adobe said that while calling its tools, Slackbot also takes in the context of the conversations. For instance, users can get information from conversations or Canvas and turn it into PDFs, images, and videos. They can also bring in assets from previous campaigns or the Creative Cloud asset library into a chat and edit them.
At launch, this integration will be available to Slack Business+ and Enterprise+ teams.
While productivity and creative companies have been busy adding AI features into their tools, most people still work in conversational boxes. This pushes the tool providers to make their features available through services like ChatGPT, Claude, and Slack.
Last month, Adobe introduced a similar integration for ChatGPT and is planning to launch a Gemini integration soon. Deepti Pradeep, Senior Director for Agentic AI at Adobe, told TechCrunch over email that people are using the company’s tool in other apps for repeatable workflows like batch-editing images or resizing creatives without leaving the app.
“In focus groups, people talked about the value they get from this experience very clearly: saving time, getting to the outcome they want faster without having to micromanage every step, being able to access Adobe wherever they’re already working. That’s been interesting for us because it’s pushed us to think less about individual edits and more about the larger outcome someone is trying to get to,” Pradeep said.
Other creative tools like Canva and Figma are also making their capabilities available in chatbots like ChatGPT and Claude. On the other hand, companies like Anthropic are releasing tighter integrations in Slack, because team context is often captured through those conversations.
Pradeep said that consumers having choices between tools is a good thing, but Adobe has the advantage of providing both creative and productive tools across different modalities.
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Ivan covers global consumer tech developments at TechCrunch. He is based out of India and has previously worked at publications including Huffington Post and The Next Web.
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Adobe koupila indický startup Rilo zaměřený na marketingovou inteligenci a automatizaci workflow. Součástí transakce je i šestičlenný tým; podmínky nebyly zveřejněny.
Adobe has acquired India-based marketing intelligence startup Rilo in a deal involving licensing and team acquisition, TechCrunch learned and the company confirmed. This is Adobe’s second acquisition from India after it bought video platform Rephrase.ai in 2023. The companies didn’t disclose the deal’s terms.
Beyond confirming the deal, Adobe declined to comment.
The acquisition gives Adobe a small team and technology focused on automating marketing workflows, which have been changing as companies use AI to build tools to automate the creation, deployment, and tracking of campaigns, get action items from meetings or calls to complete tasks, and increase brand visibility on platforms like ChatGPT, Gemini, and Claude. Rilo’s technology could bolster Adobe’s existing products as the company targets its larger customers.
Founded by IIT batchmates Georgi Boby and Dhruv Jaglan in 2025, Rilo raised $1 million from investors including Peak XV, DeVC, and Day Zero Ventures at a $10 million valuation. A source told TechCrunch that investors will get an exit from this deal, and Adobe will integrate some of Rilo’s IP along with the six-member team.
The company worked on letting go-to-market teams create custom workflows, including competitor intelligence, content repurposing and distribution, and sales call analysis. It also allowed teams to set up custom workflows comparable to tools like Claude Cowork and ChatGPT Work.
Post-acquisition, Rilo will shut down and won’t be available to its customers.
Rilo co-founders Dhruv Jaglan and Georgi BobyImage Credits:Rilo “We’re very excited that Rilo has been acquired by Adobe in such a short span of time,” Rahul Gupta, managing partner, Day Zero Ventures told TechCrunch over email. “Their workflow builder product was way ahead of the curve and shall be extremely valuable to a giant like Adobe in enhancing customer experience and productivity.”
Adobe made a marquee marketing acquisition last year by buying SEO optimization company Semrush for $1.9 billion.
DeVC’s Rahul Mathur told TechCrunch that Rilo could fit into Adobe’s CX and marketing suite to handle complex workflows and give customers visibility into actions they take on the creative company’s platform.
Rivals like Canva have also bolstered their marketing portfolio with acquisitions and new launches. Meanwhile, Amazon, Google, and Meta have built their own AI-powered marketing rails.
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Ivan covers global consumer tech developments at TechCrunch. He is based out of India and has previously worked at publications including Huffington Post and The Next Web.
You can contact or verify outreach from Ivan by emailing [email protected] or via encrypted message at ivan.42 on Signal.
Connor Clark & Lunn Investment Management ve 2. čtvrtletí nově nakoupila 3 545 akcií Adobe za zhruba 727 000 USD. Adobe zároveň oznámila, že tržby za čtvrtletí vzrostly meziročně o 12,7 %.
Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Adobe Inc. (NASDAQ:ADBE – Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 3,545 shares of the software company’s stock, valued at approximately $727,000.
A number of other hedge funds and other institutional investors also recently made changes to their positions in ADBE. Brighton Jones LLC raised its stake in Adobe by 2.1% during the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock worth $3,588,000 after acquiring an additional 167 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in Adobe by 25.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock valued at $926,000 after purchasing an additional 486 shares during the last quarter. United Bank boosted its position in Adobe by 12.8% in the second quarter. United Bank now owns 3,773 shares of the software company’s stock valued at $1,460,000 after buying an additional 428 shares in the last quarter. Schnieders Capital Management LLC. increased its holdings in shares of Adobe by 7.8% during the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after buying an additional 190 shares in the last quarter. Finally, Gamco Investors INC. ET AL raised its stake in shares of Adobe by 190.6% in the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock valued at $1,069,000 after acquiring an additional 1,813 shares during the last quarter. 81.79% of the stock is owned by institutional investors.
Adobe News Roundup Here are the key news stories impacting Adobe this week:
Positive Sentiment: Adobe’s AI-driven customer-experience business is gaining momentum, with accelerating AI-first annual recurring revenue, broader adoption of AI agents and deeper ecosystem partnerships. The trend supports Adobe’s ability to compete with Salesforce and Microsoft in enterprise software. Adobe’s AI-Driven CXO Growth Strengthens Against CRM & Microsoft Positive Sentiment: Improving sentiment toward software stocks is also supportive. Recent earnings from major software companies have suggested that AI is expanding demand rather than rapidly eroding traditional software businesses, easing “SaaSpocalypse” concerns that had pressured the sector. The SaaSpocalypse Trade Is Cracking Neutral Sentiment: Adobe expanded its partnership with Saudi Arabia’s Ministry of Communications and Information Technology and HUMAIN. The agreement provides more than 27 million eligible citizens and residents with 12 months of free access to Firefly and Adobe Express, representing over $4 billion in stated access value. The initiative could increase long-term adoption and support Saudi Arabia’s creative economy, although free access may delay near-term monetization. Adobe to Offer Free Access to AI Tools in Saudi Arabia Neutral Sentiment: Adobe will release fiscal third-quarter 2026 results after the market closes on September 10, followed by an investor conference call. The report is a major near-term catalyst, with options markets implying substantial potential volatility around earnings. Adobe to Announce Q3 FY2026 Earnings Results Negative Sentiment: Analysts remain cautious because Adobe has significantly lagged the S&P 500 over the past year, and the upcoming earnings report must demonstrate that AI-related growth can translate into sustained revenue and subscription expansion. Is Adobe Stock Underperforming the S&P 500? Insider Buying and Selling In other news, Director David A. Ricks bought 10,000 shares of the firm’s stock in a transaction dated Thursday, June 25th. The shares were bought at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the transaction, the director owned 17,655 shares of the company’s stock, valued at $3,434,074.05. This trade represents a 130.63% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Jillian Forusz sold 416 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total value of $109,961.28. Following the transaction, the chief accounting officer owned 3,824 shares in the company, valued at $1,010,797.92. The trade was a 9.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.20% of the company’s stock. Analysts Set New Price Targets Several research analysts recently issued reports on ADBE shares. Dbs Bank downgraded shares of Adobe from a “moderate buy” rating to a “hold” rating in a research report on Tuesday, May 19th. Royal Bank Of Canada lowered their price target on shares of Adobe from $350.00 to $285.00 and set an “outperform” rating for the company in a report on Monday, June 8th. Oppenheimer reiterated a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. Freedom Capital cut Adobe from a “strong-buy” rating to a “hold” rating in a research note on Friday, June 12th. Finally, Weiss Ratings downgraded Adobe from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, August 17th. Seven investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, Adobe currently has an average rating of “Hold” and a consensus price target of $272.80.
Get Our Latest Stock Report on Adobe
Adobe Stock Performance Shares of ADBE opened at $292.79 on Tuesday. The firm has a market cap of $116.38 billion, a P/E ratio of 16.75, a PEG ratio of 0.98 and a beta of 1.40. Adobe Inc. has a twelve month low of $190.12 and a twelve month high of $370.86. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. The firm’s 50 day moving average price is $242.63 and its two-hundred day moving average price is $245.19.
Adobe (NASDAQ:ADBE – Get Free Report) last released its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating the consensus estimate of $5.82 by $0.14. The firm had revenue of $6.62 billion for the quarter, compared to analysts’ expectations of $6.45 billion. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The business’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, analysts forecast that Adobe Inc. will post 19.81 EPS for the current fiscal year.
About Adobe (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
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Adobe hlásí, že AI-first ARR v CXO ve 2. čtvrtletí fiskálního roku 2026 meziročně vzrostl čtyřnásobně. Více než 80 % zákazníků AEP a AEM už používá agentické funkce.
Key Takeaways Adobe's CXO portfolio gains traction as enterprises adopt AI-driven marketing tools.ADBE's CXO AI-first ARR surged fourfold year over year in second-quarter fiscal 2026.Adobe sees 80% of AEP and AEM customers using agentic capabilities. Adobe (ADBE - Free Report) is benefiting from expanding enterprise adoption of its Customer Experience Orchestration (CXO) portfolio as companies increasingly use artificial intelligence (AI) to automate marketing, personalize customer interactions and scale content creation. Adobe is positioning Adobe Experience Platform (AEP), GenStudio, Adobe Experience Manager (AEM) and CX Enterprise as key components of this strategy. Growing adoption could help Adobe capture a larger share of enterprise marketing spending while strengthening its competitive position against the likes of Salesforce (CRM - Free Report) and Microsoft (MSFT - Free Report) .
Enterprise demand for Adobe’s CXO offerings remains encouraging. GenStudio’s ending annualized recurring revenues (ARR) increased more than 25% year over year in the second quarter of fiscal 2026, while subscription revenues from AEP and native applications rose more than 30%. Ending ARR across GenStudio, AEP and applications, and AEM and agentic web offerings increased more than 20%. Notably, Customer Experience Orchestration AI-first ARR surged fourfold year over year, indicating rising monetization of Adobe’s agentic marketing capabilities.
Agentic AI adoption provides another growth avenue. More than 80% of AEP and AEM customers are using agentic capabilities, while more than 1,500 customer trials are underway across Adobe LLM Optimizer, Sites Optimizer and Brand Concierge. Adobe launched CX Enterprise, an end-to-end agentic AI system designed to manage the customer lifecycle from prospect acquisition through conversion and loyalty. CX Enterprise Coworker had more than 150 leading enterprises participating in its early-adoption program ahead of general availability.
Adobe’s expanding ecosystem could improve adoption. CX Enterprise integrates with Microsoft Copilot, Anthropic, OpenAI and Google Gemini, while Adobe’s NVIDIA partnership brings CX Enterprise Coworker capabilities to NVIDIA’s enterprise-agent platform. Leading agencies including dentsu, Havas, Omnicom, Publicis, Stagwell and WPP are standardizing on Adobe’s AI-powered capabilities. Adobe’s acquisition of Semrush expands its CXO portfolio through search-engine optimization and generative-engine optimization capabilities that complement AEM and its agentic web offerings.
ADBE Faces Tough CompetitionSalesforce is strengthening its competitive position through Agentforce, Data 360, Marketing Cloud, Service Cloud and Slack. Agentforce ARR reached $1.5 billion in the second quarter of fiscal 2027, while accounts with agents in production increased 70% sequentially. Customers generated 3.2 billion Agentforce workload units, up 97% sequentially, and bookings for Agentforce One Edition and Agentforce for Apps more than doubled. Salesforce is seeing encouraging adoption of its next-generation marketing offering, while Data 360 continues to gain momentum. This integrated data, applications and agentic architecture positions Salesforce to compete with Adobe’s CXO strategy.
Microsoft is increasing competitive pressure through Dynamics 365, Copilot and Agent 365. Agent 365 already has nearly 40 million agents registered across tens of thousands of companies, while Microsoft 365 Copilot surpassed 30 million paid seats. Microsoft is redesigning Dynamics 365 for an agent-first environment and has exposed more than 650,000 Model Context Protocol actions across sales, finance, supply chain, HR and customer service. Customer-service credit consumption increased fourfold sequentially, while Dynamics 365 revenues rose 13% year over year. Microsoft’s vast enterprise installed base and integration of CRM, ERP, Copilot and AI agents could limit Adobe’s ability to capture a larger share of enterprise CXO spending.
ADBE’s Share Price Performance, Valuation & EstimatesShares of Adobe have declined 16.7% year to date, underperforming the broader Zacks Computer and Technology sector’s 17.1% growth.
ADBE Stock’s YTD Price Performance
Image Source: Zacks Investment Research
ADBE stock is trading at a discount, with a forward 12-month price-to-earnings ratio of 10.95X compared with the broader sector’s 20.76X. Adobe has a Value Score of B.
ADBE’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Adobe’s earnings is currently pegged at $6.08 per share, unchanged over the past 30 days, suggesting 14.50% year-over-year growth.
Adobe rozšířila partnerství se saúdskoarabským ministerstvem a společností Humain a nabídne více než 27 milionům lidí 12 měsíců zdarma své AI nástroje. Hodnota závazku přesahuje 4 miliardy USD.
Adobe (ADBE.O) said on Monday it has expanded its tie-up with Saudi Arabia's Ministry of Communications and Information Technology and Saudi government-backed AI firm Humain to provide citizens with 12 months of free access to its AI-powered tools.
The company said it plans to offer over 27 million eligible Saudi citizens and residents free access to its Adobe Firefly Standard subscription tier, plus Adobe Express Premium features, including a new image generation model "tuned to Saudi culture." Its commitment is valued at more than $4 billion.
The image model is jointly developed by Adobe and Humain, backed by Saudi's sovereign wealth fund, and will allow users to create "culturally aligned" images using Arabic-language prompts.
The free access will start rolling out by the end of 2026, Adobe said.
The companies had announced their partnership in November, aiming to boost Humain's development of tools for generating content in Arabic and for the broader Middle East region.
For Adobe, the expanded partnership is expected to aid user growth for its AI products and tools, crucial for driving growth in a crowded design software industry where smaller firms have been gaining share rapidly.
Bank of New York Mellon Corp ve 2. čtvrtletí koupila nový podíl ve společnosti Adobe za zhruba 954,47 mil. USD a držela 1,17 % společnosti. Adobe zároveň oznámila čtvrtletní tržby ve výši 6,62 mld. USD, což je meziročně o 12,7 % více.
Bank of New York Mellon Corp bought a new stake in Adobe Inc. (NASDAQ:ADBE – Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 4,655,489 shares of the software company’s stock, valued at approximately $954,468,000. Bank of New York Mellon Corp owned 1.17% of Adobe as of its most recent SEC filing.
A number of other hedge funds have also recently added to or reduced their stakes in ADBE. SWAN Capital LLC raised its position in Adobe by 43.1% in the 3rd quarter. SWAN Capital LLC now owns 103 shares of the software company’s stock valued at $36,000 after purchasing an additional 31 shares during the last quarter. Logan Capital Management Inc. raised its holdings in shares of Adobe by 0.3% in the third quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company’s stock valued at $3,453,000 after buying an additional 32 shares during the last quarter. Vista Capital Partners Inc. boosted its stake in shares of Adobe by 5.8% during the second quarter. Vista Capital Partners Inc. now owns 624 shares of the software company’s stock worth $241,000 after buying an additional 34 shares during the period. Klingman & Associates LLC grew its holdings in shares of Adobe by 3.5% during the fourth quarter. Klingman & Associates LLC now owns 1,104 shares of the software company’s stock worth $386,000 after buying an additional 37 shares during the last quarter. Finally, WPG Advisers LLC increased its position in Adobe by 45.9% in the 4th quarter. WPG Advisers LLC now owns 124 shares of the software company’s stock valued at $43,000 after acquiring an additional 39 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.
More Adobe News Here are the key news stories impacting Adobe this week:
Positive Sentiment: Expanded Firefly AI capabilities: Adobe made Firefly’s AI-generated music, voiceovers, speech and sound-effects tools generally available. The production-oriented features could strengthen Adobe’s position in creative software, increase user engagement and create additional monetization opportunities. Adobe Firefly adds AI music, voiceovers and sound effects Positive Sentiment: Improving AI investor sentiment: Bank of America raised its price target for Adobe, citing the company’s potential to monetize artificial intelligence. This reflects growing optimism that Adobe’s broad creative and document ecosystem can benefit from AI demand. ServiceNow, Adobe, Workday stocks get BofA PT boost Positive Sentiment: Recovery thesis remains intact: Recent commentary highlights Adobe’s relatively low valuation, strong free-cash-flow generation and potential for a sustained recovery as its AI strategy develops. Another analysis describes the shares as undervalued despite the recent rally. Adobe: Strong Recovery Is Just Beginning Neutral Sentiment: AI strategy is still being evaluated: Adobe is broadening access to AI tools through a freemium approach and has paused price increases to expand its user base. The strategy may support double-digit recurring-revenue growth, but investors need proof that wider adoption will translate into durable paid revenue. Is Adobe Below Fair Value On Its Freemium AI Push? Negative Sentiment: Conflicting Bank of America signal: Although BofA increased its target from $190 to $220, it retained an “underperform” rating. The target remains below the prevailing share price, signaling concern that Adobe’s AI progress may not yet justify the stock’s recovery. Benzinga analyst update Analyst Ratings Changes ADBE has been the subject of a number of recent research reports. Oppenheimer reaffirmed a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. Citigroup restated a “market perform” rating on shares of Adobe in a research note on Friday, June 12th. UBS Group downgraded Adobe from a “buy” rating to an “equal weight” rating in a report on Tuesday, July 21st. Evercore set a $225.00 price objective on shares of Adobe and gave the company an “in-line” rating in a research report on Friday, June 12th. Finally, CLSA started coverage on shares of Adobe in a research report on Monday, July 20th. They set an “outperform” rating and a $300.00 price objective for the company. Seven research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $270.96. Read Our Latest Stock Analysis on ADBE
Insider Transactions at Adobe In related news, Director David A. Ricks bought 10,000 shares of the company’s stock in a transaction on Thursday, June 25th. The stock was bought at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the acquisition, the director owned 17,655 shares in the company, valued at approximately $3,434,074.05. This represents a 130.63% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total transaction of $109,961.28. Following the sale, the chief accounting officer owned 3,824 shares of the company’s stock, valued at approximately $1,010,797.92. The trade was a 9.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.20% of the company’s stock.
Adobe Stock Down 0.1% ADBE opened at $272.22 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. Adobe Inc. has a 12 month low of $190.12 and a 12 month high of $370.86. The stock has a market capitalization of $108.21 billion, a P/E ratio of 15.57, a P/E/G ratio of 0.92 and a beta of 1.40. The business has a 50 day simple moving average of $231.18 and a 200-day simple moving average of $244.78.
Adobe (NASDAQ:ADBE – Get Free Report) last released its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The firm had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. During the same quarter in the prior year, the business posted $5.06 earnings per share. Adobe’s revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, equities analysts anticipate that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.
Adobe Profile (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
Featured Stories Five stocks we like better than Adobe 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding ADBE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Adobe Inc. (NASDAQ:ADBE – Free Report).
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AlpenGlobal Capital LLC acquired a new position in shares of Adobe Inc. (NASDAQ:ADBE – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 10,377 shares of the software company’s stock, valued at approximately $2,127,000. Adobe accounts for about 1.4% of AlpenGlobal Capital LLC’s investment portfolio, making the stock its 24th biggest holding.
Other large investors have also made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Adobe in the second quarter valued at $8,437,821,000. Norges Bank acquired a new stake in Adobe during the fourth quarter worth $2,275,165,000. Bank of New York Mellon Corp acquired a new stake in Adobe during the second quarter worth $954,468,000. Deutsche Bank AG bought a new stake in Adobe in the 2nd quarter valued at $750,203,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Adobe in the 2nd quarter valued at $211,248,000. Institutional investors and hedge funds own 81.79% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities analysts have recently commented on ADBE shares. Oppenheimer reaffirmed a “market perform” rating on shares of Adobe in a report on Friday, June 12th. Sanford C. Bernstein lowered their target price on shares of Adobe from $447.00 to $379.00 and set an “outperform” rating on the stock in a research note on Friday, June 12th. Mizuho dropped their price target on shares of Adobe from $270.00 to $245.00 and set a “neutral” rating for the company in a research report on Friday, June 12th. HSBC upgraded shares of Adobe from a “hold” rating to a “buy” rating and raised their price target for the stock from $282.00 to $308.00 in a research note on Thursday, July 2nd. Finally, Wall Street Zen downgraded Adobe from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. Seven research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $270.96.
Check Out Our Latest Report on Adobe Adobe Price Performance Adobe stock opened at $272.22 on Friday. The business’s fifty day moving average is $231.18 and its two-hundred day moving average is $244.78. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. The firm has a market cap of $108.21 billion, a P/E ratio of 15.57, a P/E/G ratio of 0.92 and a beta of 1.40. Adobe Inc. has a 52 week low of $190.12 and a 52 week high of $370.86.
Adobe (NASDAQ:ADBE – Get Free Report) last announced its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, beating analysts’ consensus estimates of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The company had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same period last year, the company posted $5.06 earnings per share. The firm’s quarterly revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Equities research analysts forecast that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.
Adobe News Roundup Here are the key news stories impacting Adobe this week:
Positive Sentiment: Expanded Firefly AI capabilities: Adobe made Firefly’s AI-generated music, voiceovers, speech and sound-effects tools generally available. The production-oriented features could strengthen Adobe’s position in creative software, increase user engagement and create additional monetization opportunities. Adobe Firefly adds AI music, voiceovers and sound effects Positive Sentiment: Improving AI investor sentiment: Bank of America raised its price target for Adobe, citing the company’s potential to monetize artificial intelligence. This reflects growing optimism that Adobe’s broad creative and document ecosystem can benefit from AI demand. ServiceNow, Adobe, Workday stocks get BofA PT boost Positive Sentiment: Recovery thesis remains intact: Recent commentary highlights Adobe’s relatively low valuation, strong free-cash-flow generation and potential for a sustained recovery as its AI strategy develops. Another analysis describes the shares as undervalued despite the recent rally. Adobe: Strong Recovery Is Just Beginning Neutral Sentiment: AI strategy is still being evaluated: Adobe is broadening access to AI tools through a freemium approach and has paused price increases to expand its user base. The strategy may support double-digit recurring-revenue growth, but investors need proof that wider adoption will translate into durable paid revenue. Is Adobe Below Fair Value On Its Freemium AI Push? Negative Sentiment: Conflicting Bank of America signal: Although BofA increased its target from $190 to $220, it retained an “underperform” rating. The target remains below the prevailing share price, signaling concern that Adobe’s AI progress may not yet justify the stock’s recovery. Benzinga analyst update Insider Activity In related news, Director David A. Ricks acquired 10,000 shares of the stock in a transaction on Thursday, June 25th. The stock was purchased at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the transaction, the director owned 17,655 shares of the company’s stock, valued at $3,434,074.05. The trade was a 130.63% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Jillian Forusz sold 416 shares of the business’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the completion of the transaction, the chief accounting officer directly owned 3,824 shares of the company’s stock, valued at approximately $1,010,797.92. This represents a 9.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.20% of the company’s stock.
About Adobe (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
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Aurora Investment Counsel ve 2. čtvrtletí nově nakoupila 7 764 akcií Adobe za zhruba 1,592 milionu USD. Akcie Adobe zároveň ve čtvrtek otevřely o 3,5 % výše.
Aurora Investment Counsel acquired a new position in Adobe Inc. (NASDAQ:ADBE – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 7,764 shares of the software company’s stock, valued at approximately $1,592,000.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Edmond DE Rothschild Holding S.A. acquired a new stake in Adobe in the second quarter worth about $1,450,000. United Bank acquired a new position in shares of Adobe during the second quarter valued at about $295,000. Madison Asset Management LLC acquired a new position in shares of Adobe during the second quarter valued at about $7,105,000. Csenge Advisory Group purchased a new position in shares of Adobe in the 2nd quarter valued at approximately $245,000. Finally, Shepherd Financial Partners LLC purchased a new position in shares of Adobe in the 2nd quarter valued at approximately $523,000. 81.79% of the stock is currently owned by hedge funds and other institutional investors.
Adobe Stock Up 3.5% ADBE stock opened at $272.47 on Thursday. The company has a market capitalization of $108.31 billion, a P/E ratio of 15.59, a price-to-earnings-growth ratio of 0.89 and a beta of 1.40. Adobe Inc. has a 12 month low of $190.12 and a 12 month high of $370.86. The firm’s fifty day simple moving average is $230.10 and its 200-day simple moving average is $244.93. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75.
Adobe (NASDAQ:ADBE – Get Free Report) last issued its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The firm had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. During the same quarter last year, the company posted $5.06 earnings per share. The firm’s revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, equities research analysts forecast that Adobe Inc. will post 19.81 earnings per share for the current year. Insider Activity at Adobe In related news, CAO Jillian Forusz sold 416 shares of the business’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the completion of the transaction, the chief accounting officer directly owned 3,824 shares in the company, valued at $1,010,797.92. The trade was a 9.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director David A. Ricks purchased 10,000 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the acquisition, the director directly owned 17,655 shares of the company’s stock, valued at $3,434,074.05. This represents a 130.63% increase in their position. The SEC filing for this purchase provides additional information. 0.20% of the stock is owned by insiders.
More Adobe News Here are the key news stories impacting Adobe this week:
Positive Sentiment: Adobe’s recent rally has been supported by improving short-term momentum and a broader rotation out of semiconductor stocks into lagging technology names. The company is also viewed by some analysts as undervalued after its earlier decline. Netflix, Salesforce, and Adobe Rally as Investors Rotate Out of Semiconductors and Into Beaten Down Stocks Is It Too Late to Buy Adobe Inc After Rally? GF Value Says Undervalued Positive Sentiment: Adobe’s freemium strategy for AI-powered tools— including holding off on some price increases to expand its user base—could accelerate adoption and support the company’s goal of double-digit annual recurring-revenue growth. Analysts also continue to favor Adobe over DocuSign, citing its stronger competitive position. Is Adobe Below Fair Value On Its Freemium AI Push? Neutral Sentiment: A dispute involving Rebel Creamery’s packaging design created with Adobe Illustrator has led to a court-ordered rebrand and Rebel’s Chapter 11 filing. The matter concerns an Adobe software user and does not appear to create a material financial impact for Adobe. How a DIY Adobe Illustrator Design Landed Rebel Creamery in a $23.8 Million Fight Negative Sentiment: Bank of America raised its price target but retained an “underperform” rating. Its new target remains materially below Adobe’s recent trading level, signaling concern that the rally may have outpaced the company’s near-term fundamentals. Bank of America Raises Adobe Price Target While Maintaining Underperform Rating Analyst Ratings Changes Several research firms have weighed in on ADBE. Phillip Securities downgraded shares of Adobe from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. Wells Fargo & Company decreased their price target on shares of Adobe from $330.00 to $250.00 and set an “overweight” rating for the company in a report on Friday, June 12th. Mizuho lowered their price objective on shares of Adobe from $270.00 to $245.00 and set a “neutral” rating for the company in a research note on Friday, June 12th. TD Cowen dropped their price objective on shares of Adobe from $310.00 to $285.00 and set a “hold” rating on the stock in a report on Monday, June 8th. Finally, Citigroup reissued a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. Seven research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $270.96.
Read Our Latest Analysis on ADBE
Adobe Profile (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
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Adobe ve 2. fiskálním čtvrtletí zvýšila tržby o 13 % na rekordních 6,62 miliardy USD a zvedla celoroční výhled tržeb i upraveného zisku na akcii. Akcie se přitom obchoduje asi za 11násobek očekávaného upraveného zisku pro letošní fiskální rok a zhruba 10násobek zisku pro příští rok.
Adobe (ADBE -2.39%) trades at $264.02 as of this writing, about 29% below its 52-week high of $370.86. After that slide, the stock costs about 15 times the earnings it reported over the past year. It costs about 11 times the non-GAAP (adjusted) earnings management expects for the current fiscal year, and roughly 10 times what analysts project for the year after that.
Multiples like these are what the market typically assigns to businesses whose profits have stopped growing, or are about to. Adobe grew revenue 13% last quarter, to a record. In other words, the price and the results disagree.
Is the creative software giant a business in decline, or one of the cheaper growth stocks in the market?
Image source: Getty Images.
Records, not decline Adobe's fiscal second quarter of 2026 (the period ended May 29) was the best in the company's history by revenue -- $6.62 billion, up 13% year over year, or 11% in constant currency. Growth was 11% in the year-ago quarter and 12% in this year's fiscal first quarter. Measured in constant currency, all three quarters grew 11% -- steady, not accelerating.
The growth was broad, too. Subscription revenue from the company's business professionals and consumers group (the one built around Acrobat and other everyday productivity tools) rose 16% year over year, while subscription revenue from the larger creative and marketing professionals group grew 13%. Profits kept pace. Adjusted earnings per share came in at $5.96, up 18% year over year, alongside $4.25 per share on a GAAP basis.
The recurring base kept building as well. Adobe exited fiscal Q2 with $27.1 billion in annualized recurring revenue (including about $480 million from newly acquired Semrush), and its remaining performance obligations (contracted revenue not yet recognized) stood at $22.3 billion. On the strength of the quarter, management raised its full-year targets for both revenue and adjusted earnings per share, and it said annualized recurring revenue from its artificial intelligence (AI)-first products tripled year over year, exceeding $500 million.
And the company keeps shrinking its share count. Adobe generated $2.17 billion in operating cash flow during the quarter and repurchased about 8.5 million shares -- roughly 2% of its shares outstanding, in three months.
The AI worry Of course, there are reasons the stock is this cheap, and the biggest is the AI threat itself. Generative AI can now produce images, video, and design work on its own, and if that is where creation is headed, fewer people may need Adobe's professional tools.
For now, however, the fear shows up in Adobe's stock price far more than in its reported numbers. The soft spots are modest. Total annualized recurring revenue is on pace to grow about 10% this fiscal year, slower than revenue -- and that pace leans on the roughly $480 million of recurring revenue that arrived with the Semrush deal, so the organic base is likely slowing more than the headline number shows. The company took a roughly $70 million goodwill impairment on its publishing and advertising unit in fiscal Q2.
And Adobe's chief financial officer departed in June, with Steve Day, a 20-year company veteran, stepping in on an interim basis. The bigger open seat is the top one. CEO Shantanu Narayen said in March, after 18 years in the job, that he'll step aside once the board names a successor. Each of those is worth watching, and none of them shows up in the growth numbers yet.
The AI-first recurring revenue figure cuts the other way entirely. A product group tripling to more than $500 million in annualized recurring revenue inside Adobe is, so far, evidence of AI adding to the company's sales. The threat may still arrive. It hasn't yet.
Today's Change
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-6.47
Current Price
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264.02
A decline the numbers don't show At roughly 10 times next year's expected earnings, the market is pricing Adobe as if its growth is about to stop.
But things don't look that way.
A company growing revenue at a double-digit rate, raising its guidance, and buying back 2% of its shares in a single quarter doesn't usually trade at these multiples unless the market believes something is about to break.
Maybe something will. AI is arguably the most serious competitive threat Adobe has faced in a long time, and a technology shift this large could eventually pull customers away faster than it adds revenue.
But that would be a future problem showing up in future numbers. In the reported ones, revenue set a record last quarter, the revenue and adjusted earnings targets went up in June, and the products the market fears most are the ones growing fastest. The stock is priced for a decline that, for now, exists only in the forecast.
Deane Retirement Strategies Inc. ve 2. čtvrtletí snížila podíl v Adobe o 15,7 % a prodala 4 351 akcií. Po prodeji držela 23 361 akcií v hodnotě 4,791 mil. USD.
Deane Retirement Strategies Inc. cut its stake in shares of Adobe Inc. (NASDAQ:ADBE – Free Report) by 15.7% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 23,361 shares of the software company’s stock after selling 4,351 shares during the quarter. Adobe makes up approximately 2.0% of Deane Retirement Strategies Inc.’s portfolio, making the stock its 23rd biggest position. Deane Retirement Strategies Inc.’s holdings in Adobe were worth $4,791,000 at the end of the most recent reporting period.
Several other hedge funds have also recently added to or reduced their stakes in ADBE. HF Advisory Group LLC raised its holdings in Adobe by 16.8% during the second quarter. HF Advisory Group LLC now owns 5,529 shares of the software company’s stock worth $1,134,000 after purchasing an additional 794 shares in the last quarter. Chemistry Wealth Management LLC raised its stake in Adobe by 117.2% during the 2nd quarter. Chemistry Wealth Management LLC now owns 1,803 shares of the software company’s stock worth $370,000 after acquiring an additional 973 shares in the last quarter. Hennion & Walsh Asset Management Inc. lifted its position in Adobe by 4.3% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 7,585 shares of the software company’s stock valued at $1,555,000 after acquiring an additional 313 shares during the last quarter. Crumly & Associates Inc. boosted its stake in Adobe by 16.4% in the second quarter. Crumly & Associates Inc. now owns 2,219 shares of the software company’s stock valued at $455,000 after acquiring an additional 312 shares in the last quarter. Finally, Seilern Investment Management Ltd grew its holdings in shares of Adobe by 1.6% during the second quarter. Seilern Investment Management Ltd now owns 179,896 shares of the software company’s stock worth $36,882,000 after purchasing an additional 2,876 shares during the last quarter. Institutional investors and hedge funds own 81.79% of the company’s stock.
Wall Street Analysts Forecast Growth ADBE has been the subject of a number of research analyst reports. Sanford C. Bernstein decreased their target price on Adobe from $447.00 to $379.00 and set an “outperform” rating for the company in a research report on Friday, June 12th. Wells Fargo & Company cut their price target on Adobe from $330.00 to $250.00 and set an “overweight” rating on the stock in a research report on Friday, June 12th. Bank of America reissued an “underperform” rating and issued a $190.00 price objective on shares of Adobe in a report on Tuesday, July 7th. Oppenheimer reaffirmed a “market perform” rating on shares of Adobe in a report on Friday, June 12th. Finally, Citigroup reiterated a “market perform” rating on shares of Adobe in a research note on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $271.30.
Check Out Our Latest Stock Report on Adobe
Insider Buying and Selling In other Adobe news, Director David A. Ricks acquired 10,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the acquisition, the director directly owned 17,655 shares of the company’s stock, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CAO Jillian Forusz sold 416 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total value of $109,961.28. Following the completion of the transaction, the chief accounting officer owned 3,824 shares of the company’s stock, valued at $1,010,797.92. The trade was a 9.81% decrease in their position. The SEC filing for this sale provides additional information. 0.20% of the stock is owned by insiders.
Key Headlines Impacting Adobe Here are the key news stories impacting Adobe this week:
Positive Sentiment: Adobe launched a unified ChatGPT plug-in that brings more than 70 creative and productivity tools—including Photoshop, Lightroom, Acrobat, image, video and PDF capabilities—directly into OpenAI’s chatbot. The integration could make Adobe’s products easier to access, expand usage and position the company as an AI enabler rather than an AI casualty. Adobe Debuts ChatGPT App Featuring All Its Programs Positive Sentiment: Recent coverage highlights Adobe’s valuation after its sharp sell-off. The company is still producing double-digit revenue growth, stable margins and substantial free cash flow, while its latest quarterly results exceeded earnings and revenue expectations. A recovery in investor sentiment or a valuation re-rating could provide significant upside. Buy the Dip or Run: 3 Software Stocks Down 50% Face Their Moment of Truth Positive Sentiment: Zacks characterized ADBE as both a long-term growth candidate and a strong value stock, reflecting its depressed valuation relative to historical levels and continuing earnings potential. Why Adobe Systems Is a Top Growth Stock for the Long-Term Neutral Sentiment: Akamai’s strong cloud and security results offer an indirect positive signal because Adobe is among its customers, but the report does not provide new information about Adobe’s financial performance. Akamai Beats Quarterly Estimates on Cloud Infrastructure Demand Negative Sentiment: Adobe remains one of the software companies targeted by AI-disruption concerns. AI-native competitors could pressure pricing, customer retention and growth, and promotional commentary warns of insider selling, talent departures and business-model changes. These claims are not confirmed in the supplied reporting, but they underscore the key risk investors are monitoring. These Are the Four Signs a Company Is About to Be Destroyed by AI Adobe Stock Performance Shares of ADBE opened at $265.21 on Monday. The stock has a market capitalization of $105.42 billion, a P/E ratio of 15.17, a P/E/G ratio of 0.89 and a beta of 1.40. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. Adobe Inc. has a 1 year low of $190.12 and a 1 year high of $370.86. The company’s fifty day moving average is $228.08 and its two-hundred day moving average is $246.75.
Adobe (NASDAQ:ADBE – Get Free Report) last released its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping the consensus estimate of $5.82 by $0.14. The company had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business’s revenue was up 12.7% on a year-over-year basis. During the same quarter last year, the business earned $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, sell-side analysts predict that Adobe Inc. will post 19.81 earnings per share for the current year.
Adobe announced that its board has approved a share repurchase program on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.
About Adobe (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
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Adobe spouští zásuvný modul pro ChatGPT, který propojí všech 70 jeho kreativních a produktivních nástrojů včetně Photoshopu, Premiere, Lightroomu a Acrobat Pro. Přístup nabídne i k Firefly přímo přes rozhraní ChatGPT.
Adobe is launching a ChatGPT plugin featuring all 70 of its creative and productivity tools that handle creation of video, images, audio and more.
“We’re building ChatGPT to connect our users with the best capabilities for the task at hand,” said OpenAI product lead Vibhor Chhabra in a statement. “Adobe’s categoriy-leading creative and productivity tools help people express their creativity, communicate and be more productive…”
The new app brings together three ChatGPT Adobe apps released in December for photo-editing heavyweight Photoshop, social-media-focused Express and PDF document maker Acrobat Pro, along with dozens of other Adobe programs, including video-editing program Premiere, photo-management tool Lightroom, design tools Illustrator and InDesign, and its Stock stock-photo service.
The deal also includes direct access to Firefly, Adobe’s own in-house AI service released three years ago that is built on copyright-safe public-domain and Adobe-owned stock images. Firefly is now a standalone app and incorporated into many other Adobe programs.
The functions are accessed directly through the ChatGPT interface, but users have to start a new chat, type @Adobe and select Adobe from the menu. Users can access the tools as a guest or go more deeply with an Adobe account log-in.
Among Adobe-provided examples of what will be possible is batch processing of photos. Type into the chatbot the desired look, tweak lighting and color, add or subtract elements, and resize or expand images.
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Videos can be reformatted from horizontal aspect ratios for distribution in vertical outlets such as YouTube Shorts and Instagram Reels. It’s a function that a number of specialized services provide for enterprises such as major TV networks trying to quickly generate social-media posts from their live sports content.
ChatGPT can also be used as a search function in users’ Creative Cloud asset libraries, finding assets by even such loose categories as style or mood. Users can take all the resulting output and further tweak it directly in Adobe apps.
“Over the past few months, we’ve expanded access to Adobe’s tools across leading AI chatbot platforms, including ChatGPT, Claude and (Microsoft’s) Copilot, with Slack and (Google) Gemini coming soon,” Adobe said in a blog post. “The Adobe plugin in ChatGPT builds on that work by bringing the power of our creative and productivity apps together in one unified plugin that draws on the same tools and capabilities that power our own agents in Adobe apps.”
ChatGPT helped ignite the still-hot AI frenzy when it launched as a chatbot nearly four years ago. Since then, owner OpenAI has pivoted away from its original consumer focus to more enterprise-oriented approaches through its Codex and ChatGPT Work. The company no longer says it has more than 1 billion users, but claims “hundreds of millions" of regular users.
Adobe has been one of the highest-profile victims of the “vibe coding” revolution fueled by Codex and Anthropic’s Claude Code, which many believed would allow relatively easy duplication of Adobe’s sophisticated software, and per-seat licensing business model. Others hit by the stampede out of software included heavyweights such as ServiceNow, Applovin, and Salesforce. Even enterprise security companies were temporarily hit, but have since largely recovered.
Wall Street investors sent Adobe shares tumbling from a 2021 high of $661 per share to as little as $202 in mid-June, when CFO Dan Durn announced his departure for a similar position at chipmaker Marvell. Shares have since perked up along with those of other software stocks, but in March, long-time CEO Shantanu Narayen said he would step down once a replacement had been found while remaining chairman.
The company also announced plans to shift to a freemium mode similar to that offered by competitors.
The ChatGPT announcement recapitulates comments made by NVidia CEO Jensen Huang at Adobe’s marketing-focused Summit in Las Vegas last spring, where he joined Narayen in a sweetly nostalgic conversation about their shared history as immigrant kids who went on to run huge tech companies.
AI, Huang said, would soon allow him to use all the capabilities of Photoshop and other sophisticated Adobe tools at a level previously only available to specialists with years of training and experience. That, he said, would open the software’s power to millions of new users.
Andra AP fonden lowered its position in Adobe Inc. (NASDAQ:ADBE – Free Report) by 46.6% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 63,189 shares of the software company’s stock after selling 55,251 shares during the period. Andra AP fonden’s holdings in Adobe were worth $15,360,000 as of its most recent filing with the Securities & Exchange Commission.
Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Western Pacific Wealth Management LP acquired a new stake in Adobe during the 4th quarter valued at approximately $26,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Adobe in the 3rd quarter valued at $26,000. Beacon Financial Strategies CORP purchased a new stake in shares of Adobe during the 4th quarter worth about $28,000. Marquette Asset Management LLC grew its holdings in Adobe by 72.3% in the fourth quarter. Marquette Asset Management LLC now owns 81 shares of the software company’s stock valued at $28,000 after purchasing an additional 34 shares during the period. Finally, TrustBank acquired a new stake in Adobe in the 4th quarter valued at $28,000. Institutional investors and hedge funds own 81.79% of the company’s stock.
Analyst Ratings Changes Several equities analysts have issued reports on ADBE shares. Barclays decreased their price objective on shares of Adobe from $275.00 to $250.00 and set an “equal weight” rating on the stock in a report on Friday, June 12th. Mizuho reduced their price target on shares of Adobe from $270.00 to $245.00 and set a “neutral” rating for the company in a research report on Friday, June 12th. Citizens Jmp reaffirmed a “market perform” rating on shares of Adobe in a research note on Friday, June 12th. Stifel Nicolaus reiterated a “hold” rating and issued a $200.00 price objective (down from $350.00) on shares of Adobe in a report on Friday, June 12th. Finally, Wells Fargo & Company cut their price objective on Adobe from $330.00 to $250.00 and set an “overweight” rating for the company in a research note on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $271.30.
Check Out Our Latest Report on Adobe
Insiders Place Their Bets In related news, CAO Jillian Forusz sold 755 shares of Adobe stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the sale, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. This trade represents a 17.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the completion of the transaction, the chief executive officer owned 359,538 shares in the company, valued at approximately $87,561,884.52. This represents a 17.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.20% of the stock is owned by company insiders.
More Adobe News Here are the key news stories impacting Adobe this week:
Negative Sentiment: Morgan Stanley lowered Adobe to Underweight, saying multiple strategic transitions are happening at once and that AI disruption could make it harder for the company to reaccelerate growth. Adobe stock has been crushed by AI fears. Now Morgan Stanley has cut its rating to underweight Negative Sentiment: More Wall Street downgrades and commentary around Adobe’s AI exposure are adding to the selling pressure, with some analysts saying peers may offer cleaner AI monetization and faster growth. ADBE Stock Drops After Morgan Stanley Downgrade – Sees ‘Cleaner Growth And AI Monetization Elsewhere’ Neutral Sentiment: Adobe continues to push into AI with new features in its experimental Project Indigo camera app, highlighting that it is still investing in product innovation even as investors worry about competitive threats. Adobe crams multiple AI tools into its experimental camera app Neutral Sentiment: Some coverage argues Adobe still looks attractive on valuation and that one analyst sees meaningful upside from current levels, but that view is being outweighed today by broader AI-related concern. ADBE stock is falling again but here’s why one Wall Street analyst sees a 31% upside Adobe Stock Performance NASDAQ ADBE opened at $227.16 on Wednesday. The stock’s fifty day moving average is $228.08 and its two-hundred day moving average is $253.81. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. The firm has a market capitalization of $90.30 billion, a P/E ratio of 13.00, a price-to-earnings-growth ratio of 0.79 and a beta of 1.43. Adobe Inc. has a fifty-two week low of $190.12 and a fifty-two week high of $376.16.
Adobe (NASDAQ:ADBE – Get Free Report) last issued its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The firm had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same period in the previous year, the firm earned $5.06 EPS. Adobe’s revenue was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, research analysts anticipate that Adobe Inc. will post 19.81 earnings per share for the current year.
Adobe announced that its board has approved a share buyback program on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to purchase up to 24.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.
Adobe Profile (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
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Morgan Stanley snížila hodnocení Adobe na Underweight a cenový cíl z 365 USD na 240 USD, protože vidí souběh více strategických změn a vyšší riziko provedení. Akcie Adobe po otevření trhu klesly asi o 2 % a letos jsou níže téměř o 31 %.
Adobe ADBE shares fell sharply in trading on Tuesday after Morgan Stanley downgraded the creative software maker, warning that multiple strategic transitions are unfolding simultaneously and could complicate its ability to return to stronger growth.
The investment bank lowered its rating on Adobe from Equal-weight to Underweight and slashed its price target by more than one-third, from $365 to $240.
The stock fell about 2% after the opening bell, extending losses that have already pushed Adobe shares down nearly 31% this year.
The downgrade comes as investors continue to assess how artificial intelligence is reshaping the software industry and whether established players can defend their businesses against a growing number of AI-native competitors.
Morgan Stanley analyst Adam Wood said Adobe is navigating several major changes at the same time, increasing the execution risk for the company.
According to the note, Adobe is dealing with three concurrent transitions: an expansion of its freemium strategy, leadership changes involving both its chief executive officer and chief financial officer, and increased investment in artificial intelligence.
The company has been witnessing a leadership vacuum created by the concurrent search for a new CEO following Shantanu Narayen’s planned departure and the June exit of CFO Dan Durn, and a deliberate shift away from margin harvesting toward heavier AI reinvestment.
"While each transition may be manageable in isolation, their convergence raises the bar for execution at a time when other areas of software offer cleaner evidence of growth durability, operating leverage, and/or near-term AI monetization," Wood wrote.
Morgan Stanley said Adobe's decision to offer free access to more users has already affected recurring revenue growth.
The brokerage estimated the strategy reduced annual recurring revenue growth by roughly $500 million during the company's second quarter.
The analysts added that the company's shift toward freemium offerings, combined with management changes and higher AI spending, "elongate the path to durable annual recurring revenue (ARR) reacceleration."
While Adobe's core business serving creative professionals continues to enjoy a strong competitive position, Morgan Stanley believes some parts of its broader workflow are becoming increasingly vulnerable to AI-native alternatives for both consumer and enterprise users.
The bank acknowledged that Adobe's lower valuation already reflects many of these concerns, but argued that the combination of simultaneous changes creates uncertainty over both the timing and strength of any recovery.
Adobe was not the only software company to receive a more cautious assessment.
Morgan Stanley also initiated coverage of Workday with an Underweight rating and a price target of $145, sending the human resources software company's shares down more than 2.75% in trading.
While the bank described Workday's competitive moat as one of the strongest in enterprise software, it said the company's artificial intelligence initiatives are unlikely to generate meaningful growth acceleration in the near term.
The brokerage initiated coverage of Salesforce and Intuit with Equal-weight ratings, reflecting a more balanced outlook.
For Salesforce, Wood described the company as a "tale of two cities."
He noted that strong momentum in products such as Agentforce and Slack has been offset by weakness in businesses including Commerce and Tableau, resulting in slower overall organic growth.
Morgan Stanley assigned Salesforce a price target of $185. Shares fell more than 1.9%.
On Intuit, which received a $335 price target, the bank said investor concerns about the company's competitive moat have significantly weighed on its valuation.
"The concern is that LLMs will be able to file taxes and provide entry level accounting software at a much lower price," the analysts wrote.
However, Morgan Stanley argued those fears are "overdone," ranking Intuit 12th within its software coverage universe for moat strength, while noting the company is less prepared than some peers for the next stage of AI-driven software development.
The ratings changes formed part of Morgan Stanley's broader software sector report introducing what it called a "Moat & Journey" framework to assess software companies based on the durability of their competitive advantages and their readiness for the AI era.
The bank identified Microsoft, Palo Alto Networks, CrowdStrike, Cloudflare, Datadog, ServiceNow, Snowflake and Shopify as its highest-conviction Overweight-rated software stocks.
Morgan Stanley also downgraded Rapid7 and PagerDuty to Underweight and reduced ratings on Elastic, JFrog, NICE, Wix, BlackLine and Vertex to Equal-weight, citing either valuation concerns or a longer path toward AI-driven growth.
Aviance Capital Partners zvýšila ve 1. čtvrtletí podíl v Adobe o 34,6 % na 11 066 akcií v hodnotě 2,69 milionu USD. Adobe zároveň oznámila zpětný odkup akcií za 25 miliard USD.
Aviance Capital Partners LLC raised its stake in Adobe Inc. (NASDAQ:ADBE – Free Report) by 34.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 11,066 shares of the software company’s stock after acquiring an additional 2,846 shares during the quarter. Aviance Capital Partners LLC’s holdings in Adobe were worth $2,690,000 as of its most recent filing with the Securities & Exchange Commission.
Other institutional investors and hedge funds have also recently modified their holdings of the company. Western Pacific Wealth Management LP purchased a new stake in Adobe in the fourth quarter worth $26,000. Measured Wealth Private Client Group LLC purchased a new position in shares of Adobe during the 3rd quarter valued at $26,000. Beacon Financial Strategies CORP purchased a new position in shares of Adobe during the 4th quarter valued at $28,000. Marquette Asset Management LLC grew its stake in shares of Adobe by 72.3% during the 4th quarter. Marquette Asset Management LLC now owns 81 shares of the software company’s stock worth $28,000 after acquiring an additional 34 shares during the period. Finally, TrustBank bought a new position in shares of Adobe during the 4th quarter worth $28,000. 81.79% of the stock is owned by institutional investors.
Adobe Stock Performance NASDAQ:ADBE opened at $237.25 on Friday. The business’s fifty day moving average is $228.58 and its 200 day moving average is $256.19. The firm has a market cap of $94.31 billion, a price-to-earnings ratio of 13.57, a PEG ratio of 0.80 and a beta of 1.43. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. Adobe Inc. has a 52-week low of $190.12 and a 52-week high of $376.16.
Adobe (NASDAQ:ADBE – Get Free Report) last issued its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping the consensus estimate of $5.82 by $0.14. The business had revenue of $6.62 billion during the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The firm’s revenue was up 12.7% compared to the same quarter last year. During the same quarter last year, the company earned $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Research analysts predict that Adobe Inc. will post 19.81 EPS for the current year.
Adobe announced that its Board of Directors has initiated a share buyback program on Tuesday, April 21st that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the software company to buy up to 24.9% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.
Insider Activity In other news, Director David A. Ricks bought 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The shares were acquired at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the acquisition, the director owned 17,655 shares of the company’s stock, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Daniel Durn sold 1,336 shares of the stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the sale, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This represents a 3.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 77,091 shares of company stock valued at $18,782,773 over the last ninety days. 0.20% of the stock is owned by insiders.
Analyst Ratings Changes ADBE has been the subject of several recent research reports. BMO Capital Markets decreased their price objective on Adobe from $285.00 to $230.00 and set a “market perform” rating for the company in a report on Friday, June 12th. Stifel Nicolaus reiterated a “hold” rating and set a $200.00 target price (down from $350.00) on shares of Adobe in a research report on Friday, June 12th. KeyCorp reduced their target price on shares of Adobe from $235.00 to $195.00 and set an “underweight” rating for the company in a research note on Friday, June 12th. Sanford C. Bernstein lowered their price target on shares of Adobe from $447.00 to $379.00 and set an “outperform” rating on the stock in a research report on Friday, June 12th. Finally, Bank of America restated an “underperform” rating and set a $190.00 price target on shares of Adobe in a research note on Tuesday, July 7th. Six investment analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $275.00.
Read Our Latest Research Report on ADBE
More Adobe News Here are the key news stories impacting Adobe this week:
Positive Sentiment: Multiple reports highlight Adobe’s attractive valuation, with some investors viewing the selloff as creating a buying opportunity and even raising the possibility that the company could become a takeover target. Is Adobe (ADBE) a Takeover Target? Rumors Are Swirling Positive Sentiment: Adobe was compared favorably with Autodesk on revenue trends, with Adobe showing larger scale and consistent quarter-over-quarter growth over the last eight quarters, which supports the case for durable business momentum. Adobe vs. Autodesk: What Revenue Trends Reveal About These Software Stocks Positive Sentiment: Several pieces frame Adobe as a potential beneficiary of the market’s reassessment of software stocks, arguing that AI is pressuring recurring-revenue models but that strong companies like Adobe are adapting and may emerge as relative winners. How to Find the Bargains in the Software Stock Wreckage Positive Sentiment: Commentary on Adobe’s “compelling valuation” and “generational buying opportunity” suggests investors are increasingly seeing the stock as undervalued despite intensifying competition. Adobe: Compelling Valuation Even Amid Intensifying Competition Positive Sentiment: Broader software-sector analysis also points to Adobe as having real competitive moats that AI may not easily replace, reinforcing confidence in the company’s long-term positioning. Alpha Buying: The Real Moats AI Can’t Replace Neutral Sentiment: Additional coverage on e-commerce and digital media trends mentions Adobe’s AI-related efforts, including its acquisition of Rephrase.AI, but the article is more about industry innovation than a direct catalyst for the stock. E-Commerce Update – AI Transforming Digital Retail Through Innovation and Connectivity Negative Sentiment: One article noted that an open-source browser-based PDF toolkit can replace Adobe Acrobat, highlighting ongoing competitive pressure in one of Adobe’s core product areas. I replaced Adobe Acrobat with a 10x faster, browser-based open-source PDF toolkit Adobe Company Profile (Free Report)
Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.
The company’s core offerings are organized around digital media and digital experience.
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Adobe (NASDAQ: ADBE | ADBE Price Prediction) has been beaten down while fundamentals improved. Our 24/7 Wall St. price target is $283.39, roughly 26.72% above the current price of $223.64. We rate the stock a buy with 90% model confidence. An $88.9 billion software franchise with AI-first ARR north of $500 million, trading at a forward P/E near 9.
Metric Value Current Price $223.64 24/7 Wall St. Price Target $283.39 Upside 26.72% Recommendation BUY Confidence Level 90% Adobe Was Cut Nearly in Half While Fundamentals Improved ADBE is down 39.79% over the last year and 36.1% year to date, below the 52-week high of $376.16 and just above the $190.12 low.
Q2 FY26, reported June 11, 2026, was a record. Revenue hit $6.62 billion (up 13% YoY), non-GAAP EPS of $5.96 marked a fifth straight beat, and total ARR closed at $27.10 billion. Management raised FY26 non-GAAP EPS guidance to $24.35 to $24.45.
The Case for $322 and Higher Our bull scenario takes ADBE to $322.51, a 44.21% return over 12 months. Firefly ARR is approaching $300 million and grew roughly 50% quarter over quarter, Firefly enterprise ARR is up 4x YoY, and Creative freemium MAU jumped from 50 million to 90 million.
Acrobat AI Assistant paid MAU grew 150%+ YoY. Options positioning skews bullish with a full-chain put/call ratio of 0.46. The Semrush deal adds roughly $480 million in ARR, and consensus of $272.48 implies meaningful upside.
What Could Go Wrong Our bear scenario finishes at $249.71, still an 11.66% return. CEO Shantanu Narayen is transitioning to Board Chair, CFO Dan Durn departed June 15, 2026, and Q2 GAAP EPS of $4.25 was weighed by a $70 million goodwill impairment and a $30 million litigation accrual.
Competition from OpenAI, Canva, Figma, and Microsoft Copilot has crushed the multiple. Recent insider activity skewed to selling. The goodwill charge is a non-cash write-down on a legacy Publishing and Advertising unit. Non-GAAP EPS of $5.96 still grew 18% YoY. The operating engine remains intact.
How Adobe Compares to Salesforce and Autodesk Adobe’s forward P/E near 9 looks cheap against two AI-forward software peers.
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Salesforce (NYSE: CRM) Salesforce (NYSE: CRM) is the cleanest AI-monetization comparison. Q1 FY27 revenue of $11.13 billion grew 13.3% YoY, with Agentforce plus Data 360 ARR near $3.4 billion, up over 200% YoY. Salesforce trades at a trailing P/E of 18 versus Adobe at 13. On a comparable AI-growth basis, Adobe screens materially cheaper.
Autodesk (NASDAQ: ADSK) Autodesk (NASDAQ: ADSK) is the closest creative and design software analogue. Q1 FY27 revenue of $1.93 billion grew 18.4% YoY with non-GAAP EPS of $2.99. Management guides FY27 non-GAAP EPS of $12.40 to $12.65.
Adobe’s forward EPS of $26.26 and Q2 revenue growth of 13% suggest the market is pricing ADBE like a decelerating incumbent, while the numbers describe a raised-guidance AI beneficiary.
I Would Buy Here, With Eyes Open The 24/7 Wall St. price target of $283.39 with 90% confidence and a buy rating reflects a rare valuation gap in mega-cap software. A forward P/E of 9 attached to a business that just raised guidance and tripled AI-first ARR to over $500 million makes this compelling.
The setup looks attractive for investors who can stomach CEO and CFO succession noise. The thesis weakens if AI-first ARR growth breaks or if the freemium payback (management expects it to play out over 2027) fails to materialize.
Year 24/7 Wall St. Price Target 2026 $251.16 2027 $283.39 2028 $335 2029 $390 2030 $446.28 These projections assume Adobe converts freemium traffic into paid seats and defends its creative moat. Meaningful upside or downside could come from the CEO succession outcome, the pace of AI monetization, or a broad re-rating of the software sector.
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Bank of America obnovila pokrytí Adobe s ratingem Underperform a cílovou cenou 190 USD, protože podle ní generativní AI oslabuje konkurenceschopnost firmy. Akcie přesto v úterý vzrostly asi o 4,6 %.
Adobe Inc. ADBE shares rose about 4.6% on Tuesday even after Bank of America reinstated coverage of the software company with an Underperform rating.
The brokerage argued that generative artificial intelligence is weakening Adobe's competitive position despite the stock trading near the lower end of its historical valuation range.
Bank of America set a price target of $190, valuing the company at seven times its projected 2027 enterprise value to free cash flow (EV/FCF), below the roughly 9.7-times average multiple for a broader group of software companies.
The brokerage said Adobe's valuation alone is not sufficient to support a more constructive investment stance as the company faces increasing competition from AI-native products.
Bank of America analysts, led by Tal Liani, said the key issue facing Adobe is whether the company can accelerate growth in an AI-driven software market.
The analysts wrote that the central question is whether Adobe "can reaccelerate growth in the age of AI."
While Adobe has seen adoption of its AI offerings, the brokerage said those products have yet to generate a meaningful financial contribution.
According to the report, AI-first annual recurring revenue (ARR) currently accounts for less than 2% of Adobe's total ARR.
The bank forecasts total revenue growth slowing from 10.5% in 2025 to 8.8% in 2027, with "no clear path to near-term reacceleration."
The report also noted that AI-related competitive risks vary across Adobe's customer base.
Casual users and non-professional creators are viewed as more vulnerable because AI-generated content can often replace paid subscriptions.
Professional and enterprise customers are expected to remain more resilient because they require precision and integrated workflows.
However, the analysts cautioned that "not all professional users need the full Adobe workflow," leaving some professionals and single-application users exposed to lower-cost AI alternatives.
Leadership transition and product pressures remain in focusBank of America also highlighted challenges facing Adobe Stock, the company's marketplace for images and videos.
Management has said Adobe Stock has declined for two consecutive quarters, although it did not disclose specific figures.
The brokerage said the weakness reflects the broader risk that free or inexpensive AI tools could reduce demand for Adobe's higher-margin legacy offerings while limiting future seat expansion.
The analysts also pointed to recent executive changes as another source of uncertainty.
They said the simultaneous departures of CEO Shantanu Narayen and CFO Dan Durn "heightens risk around strategy, continuity, and leadership stability" as Adobe navigates its AI transition.
Although the bank expects Adobe to maintain strong profitability, including a free cash flow margin approaching 39% by 2028, it believes there is "limited multiple expansion without clear evidence of AI monetization and growth acceleration."
Historical data also suggests that buying large pullbacks in Adobe shares has produced inconsistent results.
Since 2010, the stock has experienced 12 declines of at least 20% within a 30-day period.
Only six of those events generated positive returns over the following year. The median one-year return after those declines was negative 4%, while investors experienced a median maximum drawdown of 17% before any recovery.
Despite that track record, Adobe's underlying financial performance remains solid.
The company reported 11.5% revenue growth over the last 12 months, with a three-year average growth rate of 11%. It also generated an operating cash flow margin of 41.6%, highlighting strong profitability and cash generation.
Creative Freemium monthly active users increased from 50 million to 90 million year over year.
Adobe currently trades at a price-to-earnings ratio of about 12, compared with roughly 25 for its peer benchmark, although Bank of America maintained that stronger evidence of AI-driven growth will be needed before adopting a more positive view on the stock.
Key Takeaways Adobe is expanding Firefly with Topaz Labs' AI tools for image and video enhancement.Topaz Labs adds upscaling, sharpening, noise removal and restoration capabilities to Adobe. Adobe expects fiscal 2026 revenues of $26.5B-$26.6B as AI demand continues to grow. Adobe (ADBE - Free Report) has been leveraging AI to boost top-line growth. The acquisition of Topaz Labs strengthens Adobe’s AI strategy by adding image and video enhancement technology to its growing Firefly ecosystem. The deal complements Adobe’s broader vision of becoming the AI platform of choice for creators by expanding AI capabilities beyond content generation into professional-quality enhancement, restoration and editing.
Topaz Labs’ AI models specialize in upscaling, sharpening, noise removal, stabilization, frame interpolation and archival restoration. Once integrated into Adobe Firefly, Firefly Services and Creative Cloud applications such as Photoshop, Lightroom and Premiere Pro, these technologies will enable creators to seamlessly combine AI-generated and traditionally captured content while maintaining professional-grade quality. This strengthens Adobe's ability to serve filmmakers, photographers, designers and enterprises that increasingly rely on hybrid AI workflows.
The acquisition advances Adobe’s strategy of attracting more AI users through Firefly. During its latest earnings call, management said AI-driven content creation demand is accelerating rapidly, as creative freemium monthly active users (MAUs) surged from more than 50 million to more than 90 million on a year-over-year basis. Firefly’s annual recurring revenue grew roughly 50% sequentially. Adobe is intentionally expanding its freemium AI offerings to acquire hundreds of millions of new creators before monetizing them through subscriptions and AI credit consumption.
Topaz Labs’ proprietary Neurostream technology enables large AI models to run efficiently on local devices instead of relying solely on the cloud. This aligns with Adobe’s goal of delivering faster, lower-cost and more responsive AI experiences while expanding access to advanced creative tools across a broader range of devices. On-device AI can also reduce inference costs and improve responsiveness, supporting Adobe's long-term push to scale AI profitably.
As enterprises and creators increasingly demand end-to-end AI-powered content production, the addition of Topaz Labs makes Adobe’s Firefly and Creative Cloud ecosystem more comprehensive and better positioned to capture the growing AI-powered creative market. For fiscal 2026, Adobe now expects total revenues between $26.5 billion and $26.6 billion. Adobe expects Business Professionals and Consumers’ subscription revenues between $7.44 billion and $7.48 billion. Creative and Marketing Professionals subscription revenues are expected to be between $18.21 billion and $18.27 billion.
Adobe Faces Tough CompetitionAdobe’s AI business is minuscule compared with Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) .
Microsoft’s Intelligent Cloud revenues are benefiting from growth in Azure AI services and a rise in the AI Copilot business. The company monetizes AI through existing customer relationships, reducing customer acquisition costs while expanding revenue per user. The Intelligent Cloud segment delivered third-quarter fiscal 2026 revenues of $34.7 billion, up 30%, and is guided between $37.95 billion and $38.25 billion in the fourth quarter of fiscal 2026, indicating 27% to 28% growth. Azure’s comprehensive infrastructure capabilities position the company to capture increasing cloud migration spending while maintaining pricing power through differentiated services.
Alphabet’s focus on leveraging AI to drive growth is a key catalyst. AI is heavily infused across its offerings, including Search and Google Cloud. AI is driving Alphabet’s Search & Other revenues, which grew 19% year over year in the first quarter of 2026. Gemini Enterprise’s paid monthly active users grew 40% sequentially, while revenues from products built on Google’s generative AI models increased nearly 800% year over year. Alphabet’s total paid subscriptions reached 350 million, driven in part by Gemini app adoption and premium AI plans.
ADBE’s Share Price Performance, Valuation & EstimatesAdobe shares have dropped 39.7% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 18.3%.
Adobe Stock’s Price Performance
Image Source: Zacks Investment Research
The ADBE stock is trading at a discount, as suggested by a Value Score of A. In terms of trailing price/book, Adobe shares are trading at a discount of 7.28X compared with the broader sector’s 10.28X.
ADBE Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $24.17 per share, up 2.8% over the past 30 days, suggesting 15.43% year-over-year growth.
Adobe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adobe kupuje Topaz Labs, výrobce AI nástrojů pro vylepšování videa a obrázků, a začlení jeho modely do Firefly i dalších editorů. Transakce má být uzavřena v druhé polovině roku 2026.
Adobe on Thursday said it is acquiring Topaz Labs, which offers AI models for video and image enhancement, and that it will make it a part of its creative business.
Topaz Labs, which won an Emmy last year for its production tech, has existed for more than two decades, making tools for enhancing videos and images. In recent years, the company has released its own models: Astra for AI video upscaling and Wonder for image retouching and enhancement. The startup has also worked on a technology that makes it easier to run large video models on consumer-grade GPUs.
Adobe, which already offers some of Topaz’s tools in its Creative Cloud suite, said it will integrate Topaz’s models into its Firefly AI app as well as other parts of its image and video editing suites. Adobe said Topaz’s offerings will be available as stand-alone services through its website.
Deepa Subramaniam, VP of product marketing for Creative Cloud at Adobe, said professionals who want to combine real-life footage with AI clips can use Topaz’s products for tasks like sharpening details, reducing noise, or restoring archival footage.
“Topaz Labs brings deep expertise in optimizing large, complex AI models to run directly on device, a capability that will allow Adobe to deliver faster, more responsive experiences for customers and make advanced AI more accessible and cost-effective for creatives. In addition, Topaz Labs is trusted by professionals of all creative crafts – from designers and video professionals to photographers and enterprise creative teams,” Subramaniam said in an emailed statement.
Adobe has been in fierce competition with Canva and DaVinci Resolve-owner Blackmagic Design in the image and video editing space. Adobe has been stuffing AI into all of its apps and has also created an AI-centric media editing studio with Firefly. By acquiring startups like Topaz Labs, Adobe wants to keep its users from turning to other software for video editing and enhancements, encouraging them to stick to its ecosystem.
Adobe said the transaction will close in the second half of 2026.
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Adobe oznámila rekordní tržby ve výši 6,62 miliardy USD a non-GAAP zisk na akcii (EPS) 5,96 USD, zatímco AI-first ARR se meziročně ztrojnásobil na více než 500 milionů USD.
I keep hitting the buy button on Adobe (NASDAQ:ADBE | ADBE Price Prediction) because the market has handed me a chance to own a global software franchise at a multiple normally reserved for a dying utility. The stock is down 44.31% year to date and sits at $194.90, yet the underlying business just put up the strongest quarter in its history. That gap between price and performance is my entire thesis.
The Business Wall Street Says Is Cooked The bear story is that generative AI startups will eat Adobe’s lunch and that 4.2% inflation plus consumer debt will pinch enterprise software budgets. Yet in the quarter Adobe reported on June 11, 2026, revenue hit a record $6.62 billion, up 13% year over year. Non-GAAP diluted EPS came in at $5.96, the fifth consecutive beat. Total Adobe ARR exited the quarter at $27.10 billion. AI-first ARR, the very line item the bears say cannot exist for Adobe, tripled year over year and crossed $500 million. CEO Shantanu Narayen said the company is “raising our full-year fiscal 2026 revenue and non-GAAP EPS targets on the strength of that performance.” That commentary signals a franchise that is accelerating.
Three Reasons I Keep Adding Valuation. Adobe trades at a forward earnings multiple of 8x with a PEG of 0.534, a trailing P/E near 11x, and an EV/EBITDA of 7.8. That is being priced like a no-growth industrial. Yet management guided full year FY2026 revenue to $26.50 billion to $26.60 billion and non-GAAP EPS to $24.35 to $24.45, against a roughly 45.0% non-GAAP operating margin. Software companies with that profile rarely come this cheap.
Cash engine. Q2 operating cash flow was $2.165 billion against capex of just $58 million, on top of a record $10.030 billion in FY2025 operating cash flow. Management repurchased roughly 8.5 million shares for $2.111 billion in the quarter, retiring stock at depressed prices. Return on equity sits at 62.9%. That is the definition of a cash compounder.
Moat monetizing AI. Subscription revenue reached $6.39 billion, up 14% year over year. Acrobat surpassed 850 million monthly active users, Firefly ARR is approaching $300 million with 50% quarter-over-quarter growth, and the AI-first ARR in Customer Experience Orchestration grew 4x year over year. As Narayen put it, “creativity is an area where Adobe is uniquely qualified.” The retail crowd on Reddit captured it more bluntly: “Adobe already put it behind a paywall and called it dinner.”
The Risk I Will Not Wave Away The real worry is leadership transition layered onto a brutal stretch for the stock. CFO Dan Durn departed on June 15, 2026, with an interim CFO in place. The quarter included a $70 million goodwill impairment and a $30 million litigation accrual, and Form 4 filings show executives, including the CEO, sold common stock at prices between $206.36 and $248.02 in April and June rather than buying the dip. What does not change is that the stock now trades below where those insiders sold, the cash machine is unbroken, and the recurring revenue base keeps compounding regardless of who signs the 10-Q.
Why The Buy Button Stays Active Wall Street is paying a stagnant-business multiple for a franchise generating 35.3% operating margins and tripling its AI revenue line. Analysts carry a consensus target of $282.27 while the price sits at $194.90. I am buying Adobe because the cash flows are real, the buyback is shrinking my denominator, and the AI thesis is showing up in the ARR line every quarter. When a global software monopoly goes on sale at 8x forward earnings, I keep clicking buy.
Adobe letos odepsal více než 40 %, ale firma v 1. čtvrtletí zvýšila tržby o 12 % a zvedla celoroční výhled. AI segment už generuje více než 500 milionů USD ročních opakovaných příjmů.
Adobe (ADBE +0.67%) shares have plunged by more than 40% year to date. The stock trades below $200, a far cry from when the stock nearly touched $700 per share.
Artificial intelligence is on most investors' minds, especially with how easy it is to create images with AI tools. However, this fear has resulted in an unreasonably low valuation for a company that is still growing.
Image source: Getty Images.
Addressing the AI concern Software stocks sold off broadly amid concerns that artificial intelligence would replace software businesses, rendering them obsolete. Claude's Cowork demonstrated that its generative AI could replace software. While it's a major AI innovation, it's easy for investors to overestimate how quickly new technology will move and whether existing software businesses will become obsolete.
Adobe isn't the only software stock that has tumbled amid fears that SaaS companies may no longer be needed. Salesforce and Workday were both hit hard. Those two stocks have also lost more than 40% year to date.
While the surrounding narrative about Adobe and AI is that advanced technology can make Adobe obsolete, that is an extreme exaggeration that has driven the company's attractive 11 P/E ratio. Adobe's P/E ratio was in the mid-20s less than a year ago and comfortably held that position. Adobe can more than double in valuation alone.
Even the concerns about images are overblown. Getty Images proved there's little to worry about by securing a long-term deal with OpenAI. While AI is changing the digital landscape, investors are trading Adobe stock as if it were doomed to fail and wouldn't adapt.
Today's Change
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Adobe's fundamentals point to long-term growth Looking at Q1 results and the press release commentary makes the AI-fueled panic even more bizarre. Adobe delivered 12% year-over-year revenue growth in Q1, raised its full-year guidance, and cited "strong AI-driven demand across customer groups" as a major catalyst.
The company has a solid foundation, including $27.1 billion in annual recurring revenue. The company also generates over $500 million in annual recurring revenue from its AI segment, a figure that has more than doubled year over year.
Adobe continues to post net profit margins in the mid-20s. Its business is gaining market share despite the stock's year-to-date losses. That mismatch suggests Adobe can be a compelling long-term opportunity at current levels. Continued success with its AI products can strengthen the bullish narrative and reward investors who wait for the comeback story.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Salesforce, and Workday. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
Adobe oznámila nové partnerství v oblasti AI a technologií s předními agenturami a integrátory, aby firmy mohly ve velkém vytvářet, aktivovat a měřit personalizované zákaznické zkušenosti.
CANNES, France--(BUSINESS WIRE)--Today, at Cannes Lions, Adobe (Nasdaq:ADBE), the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms, announced new innovations with the world’s leading agency networks, technology partners and systems integrators to create, activate and measure personalized customer experiences at scale.
Adobe is the agentic infrastructure layer across models, platforms, agents and ecosystem, bringing together creativity, marketing and AI in the agentic era. With Adobe CX Enterprise and CX Enterprise Coworker, Adobe is helping brands drive performance and protect brand integrity across content supply chain, customer engagement and brand visibility.
These new solutions and integrations further solidify Adobe as a trusted partner to technology companies and agencies and the platform-of-choice for effective multi-agent collaboration that drives better customer experiences and business outcomes.
“Agentic AI is no longer something brands experiment with, but what they run on,” said Rachel Thornton, Chief Marketing Officer, Customer Experience Orchestration, Adobe. "Through our partnerships with the world's leading agencies and technology companies, Adobe is building for that reality, connecting paid and owned channels, embedding intelligence across platforms and helping brands define the next era of customer experience.”
Partnering to transform customer experiences at scale
Anchored by new co-developed solutions, a growing coalition of industry leaders including Accenture, Omnicom, Stagwell’s Code and Theory and WPP are deploying Adobe's content, data and AI platforms to transform how global brands create, activate and measure customer experiences.
WPP is launching a connected intelligence layer that unifies paid media spend with owned customer experience data, creating a continuously improving loop for customer interactions and marketing investment. Stagwell agency Code and Theory is launching the Content Operating System for Sports, a new solution that streamlines content creation, management and distribution for sports organizations, directly connecting fan engagement data to content workflows powered by Adobe CX Enterprise. Omnicom is unveiling implementation architectures across automotive, pharmaceuticals, retail, and financial services of its AI Agentic Operating Model, a new enterprise solution powered by Adobe technology that transforms how enterprises plan, create, activate, and optimize campaigns and customer experiences at scale. Adobe and Accenture Song have co-developed a new agentic experience orchestration framework, powered by Adobe technology, that defines how brands can deliver AI-powered customer experiences at scale and drive measurable growth. Delivering intelligence to AI environments
Adobe connects CX Enterprise with partners across agents, skills and Model Context Protocol (MCP) servers, so teams can move quickly and with precision without having to worry about maintaining brand integrity and governance.
Adobe recently announced CX Enterprise Coworker and Adobe Marketing Agent availability across leading AI platforms, including Amazon Web Services (AWS), Anthropic, Google Cloud, Microsoft, OpenAI and more.
Now Adobe CX skills and MCP servers are also generally available in Anthropic’s Claude Enterprise and Microsoft 365 Copilot Cowork, giving enterprise customers direct access to Adobe’s customer experience capabilities within the AI environments they already rely on.
Adobe at Cannes Lions
At Cannes Lions 2026, Adobe is showcasing how creativity, marketing and AI are converging in the agentic era. From creators and marketers to the world's largest brands and enterprises, Adobe is helping people imagine, create, orchestrate and deliver experiences that move from ideas to impact.
As the first-ever Headline Partner of LIONS Creators, Adobe is bringing together industry leaders, creators and customers to explore the future of creative expression, brand building and customer experience. Across Creator Beach, the Majestic, the Parvis and stages across the Festival, the company is demonstrating how innovations in Adobe Creative Cloud and Adobe CX Enterprise are enabling organizations to create standout content, engage customers more effectively and scale creativity with greater speed and precision.
At a moment when creativity, marketing and AI are converging into one system, only Adobe brings them together — combining the world's leading creative tools with enterprise marketing and AI in a single, unified platform — empowering creators, brands and enterprises to move faster, deliver more personalized experiences and drive business growth and impact. Learn more at https://canneslions.adobe.com/2026/home.
About Adobe
Adobe empowers everyone to create through industry-leading platforms and tools that unleash creativity, productivity and personalized customer experiences. For more information, visit www.adobe.com.
Adobe rozšiřuje AI v marketingu a zákaznické zkušenosti novými řešeními a partnerstvími s Accenture, Omnicom, WPP a Stagwell's Code and Theory. Cílem je více automatizovat tvorbu, správu i měření kampaní.
Adobe (ADBE, Financials) is leaning further into AI for marketing and customer experience. The company announced new solutions and partnerships at Cannes Lions 2026 with Accenture, Omnicom, WPP and Stagwell's Code and Theory. The goal is to help brands create, manage and measure campaigns with more automation.
Adobe and Accenture Song have developed a framework for AI-powered customer experiences. Omnicom is also using Adobe technology in its AI Agentic Operating Model for industries such as autos, retail, pharmaceuticals and financial services.
WPP is launching a connected intelligence layer that links paid media spending with customer experience data. Code and Theory is rolling out a content system for sports organizations, using Adobe tools to connect fan data with content workflows.
The announcements show Adobe trying to defend and expand its role in marketing software as AI changes how brands produce content and run campaigns.
For investors, the key question is whether these partnerships can turn AI interest into stronger revenue growth after concerns about slower momentum in Adobe's core business.
Adobe rozšiřuje Creative Agent napříč Firefly, Photoshopem, Premiere Pro a Illustratorem a vkládá AI přímo do pracovního procesu. Firma tím posiluje svůj ekosystém a potenciál růstu.
Key Takeaways Adobe is expanding Creative Agent across Firefly, Photoshop, Premiere Pro and Illustrator.Adobe is integrating AI into its apps as a productivity layer across the creative process.AI tools may boost engagement, retention and growth in digital media and content creation. Adobe’s (ADBE - Free Report) recent expansion of its AI-powered Creative Agent across Firefly and core Creative Cloud applications—including Photoshop, Premiere Pro, Illustrator and other flagship products—marks another important step in strengthening its long-term growth strategy.
Adobe already holds a dominant position in the professional creative software market through industry-leading solutions such as Photoshop, Illustrator, Premiere Pro and After Effects. By embedding Creative Agent capabilities directly into these applications, the company is evolving AI from a standalone tool into a seamless productivity layer integrated throughout the creative process.
Artificial intelligence is increasingly becoming a major driver of Adobe’s future growth. The company continues to enhance its platform with generative AI offerings such as Acrobat AI Assistant, Firefly App and Services and GenStudio for Performance Marketing. Adobe’s established product ecosystem benefits from high switching costs and strong customer loyalty, providing a durable competitive advantage that supports pricing power and steady subscription revenue growth.
The company also enjoys the benefits of recurring revenues, robust free cash flow generation and strong operating margins. The expansion of AI capabilities across its ecosystem has the potential to boost customer engagement and retention while creating new growth opportunities in digital media and content creation. As organizations increasingly adopt AI-powered creative tools, Adobe remains well-positioned to capture a significant share of the value generated by the next wave of creative and marketing workflows.
What About Adobe’s Peers?Alphabet (GOOGL - Free Report) continues to broaden its generative AI stack across models, tooling and security. Alphabet’s global expansion of Search Live reflects Google’s broader push to integrate generative AI more deeply into its core search experience. Alphabet’s Google introduced Lyria 3 Pro, expanding its portfolio of generative AI tools across different creative domains.
Salesforce’s (CRM - Free Report) expanding generative AI portfolio positions it to capitalize on growing AI opportunities. Since launching Einstein GPT in March 2023, Salesforce has strengthened its AI capabilities through strategic investments. Salesforce allocated $1 billion through its venture capital fund for generative AI and deployed more than $850 million by October 2025.
ADBE’s Price PerformanceShares of Adobe have lost 44.2% year to date, underperforming the industry.
Image Source: Zacks Investment Research
ADBE’s Discounted ValuationADBE trades at a price-to-earnings value ratio of 7.55, lower than the industry average of 19.84.
Image Source: Zacks Investment Research
Estimate Movement for ADBEThe Zacks Consensus Estimate for ADBE’s fiscal third and fourth-quarter 2026 earnings per share has moved north in the last 30 days. The same holds true for fiscal 2026 and 2027.
Adobe ve 2. čtvrtletí fiskálního roku 2026 vykázala rekordní tržby 6,62 mld. USD a non-GAAP EPS 5,96 USD, přičemž vedení zvýšilo výhled tržeb na 26,50–26,60 mld. USD.
Few large-cap software names have fallen as far, as fast, as Adobe (NASDAQ:ADBE | ADBE Price Prediction) over the past year. The stock has gone from a creative-software bellwether to a value puzzle, with the market pricing in AI disruption while management keeps raising guidance. That gap is where our model sees opportunity.
Adobe trades at $194.90 as of June 22, 2026. Our 24/7 Wall St. price target for Adobe is $264.05 over the next 12 months, implying 35.48% upside. Our recommendation is buy, with confidence of 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $194.90 24/7 Wall St. Price Target $264.05 Upside 35.48% Recommendation BUY Confidence Level 90% A Year of Pain Meets a Beat-and-Raise Quarter ADBE has fallen 44.31% year to date and 48.29% over the past year, with shares trading 28% below the 52-week high of $392.58 and just above the $190.12 low.
Yet the fundamentals remain intact. Q2 FY2026 delivered record revenue of $6.62 billion, up 13% year over year, with non-GAAP EPS of $5.96 marking the fifth consecutive beat. AI-first ARR tripled to exceed $500 million, and management raised FY2026 revenue guidance to $26.50B–$26.60B.
The selling pressure comes from elsewhere. Citi cut its price target to $228 from $264 on June 20, citing a roughly $500 million implied reduction to organic ARR as Adobe pivots toward freemium acquisition. Sector-wide AI subscription fears, the CFO transition (Dan Durn departed June 15, 2026), and CEO succession have compounded the de-rating.
The Case for $328 and Above Bulls point to AI monetization that is accelerating, not stalling. AI-first ARR moved from a $250M target in Q3 FY2025 to $500M+ by Q2 FY2026. The CX Enterprise Coworker launch and Cannes Lions partnerships with Accenture, Omnicom, WPP, Anthropic, and Microsoft reposition Adobe as agentic infrastructure rather than disruption target.
Operating cash flow hit $2.17 billion in Q2, funding $2.111 billion in buybacks. Our bull case price target is $328.58, a 68.59% return. The Reddit thesis put it bluntly: “Wall Street thinks AI is coming for Adobe’s lunch. I think Adobe already put it behind a paywall and called it dinner.”
What Could Go Wrong The bear case is real. Freedom Broker downgraded ADBE to Hold from Buy, calling Adobe’s growth “acquired rather than organic” and pointing to a “show-me phase.” Generative AI competitors (Figma, Canva, OpenAI) threaten the creative workflow moat, and the 132 recent insider transactions have skewed net selling.
Q2 GAAP EPS of $4.25 reflected a $70M goodwill impairment and $30M litigation accrual, although those are non-recurring items and non-GAAP EPS still beat. Our bear case target is $235.93, still a 21.05% return from here.
Adobe Price Prediction 2026-2030 At an implied forward P/E near 8x, ADBE is pricing in significant AI disruption that the numbers do not yet show. Our 24/7 Wall St. price target of $264.05 implies 35.48% upside, with 90% confidence and a buy call.
The Q2 beat-and-raise tips the scale. The setup looks constructive if Q3 ARR growth holds at the guided trajectory. The thesis weakens if Adobe walks back its FY2026 ARR growth target of 10.2% on the next earnings report.
Year 24/7 Wall St. Price Target 2026 $231.09 2027 $285.23 2028 $355.18 2029 $396.75 2030 $445.34 These projections assume Adobe continues converting AI-first ARR into durable subscription revenue. Significant upside or downside could result from regulatory resolution on Semrush, new leadership execution, or a faster-than-expected shift in creative software economics.
