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.
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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.
