California State Teachers Retirement System grew its stake in shares of Adobe Inc. (NASDAQ:ADBE – Free Report) by 19,873.5% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 125,658,193 shares of the software company’s stock after acquiring an additional 125,029,070 shares during the quarter. California State Teachers Retirement System owned about 31.61% of Adobe worth $25,762,443,000 as of its most recent SEC filing.
Other institutional investors also recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Adobe during the second quarter valued at $8,437,821,000. Norges Bank purchased a new position in Adobe in the 4th quarter worth $2,275,165,000. Primecap Management Co. CA acquired a new stake in Adobe during the 2nd quarter worth about $1,071,668,000. Bank of New York Mellon Corp acquired a new stake in Adobe during the 2nd quarter worth about $954,468,000. Finally, Deutsche Bank AG purchased a new stake in Adobe during the 2nd quarter valued at about $750,203,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.
Adobe Price Performance NASDAQ:ADBE opened at $266.51 on Tuesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. The company has a 50 day moving average price of $250.39 and a 200-day moving average price of $245.73. Adobe Inc. has a 1-year low of $190.12 and a 1-year high of $370.86. The firm has a market cap of $105.94 billion, a price-to-earnings 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 released its quarterly 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. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The company 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 earned $5.06 earnings per share. The firm’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. Equities research analysts forecast that Adobe Inc. will post 19.81 EPS for the current year. Key Stories Impacting Adobe Here are the key news stories impacting Adobe this week:
Positive Sentiment: RBC Capital maintained an Outperform rating and raised its price target to $315, citing expectations for an in-line third quarter and the importance of renewed annual recurring-revenue growth. The target implies meaningful upside from recent trading levels. RBC sets $315 target article Positive Sentiment: Adobe’s recent rally is being supported by strong fundamentals: second-quarter revenue reached roughly $6.6 billion, up 12.7% year over year, while AI-first ARR more than tripled to above $500 million. Investors will look for further evidence of monetization in Thursday’s results. Adobe Q3 earnings preview Positive Sentiment: Bank of America reportedly views Adobe more favorably than Oracle ahead of earnings, adding a positive relative-investment case for the software company. BofA Adobe versus Oracle analysis Neutral Sentiment: Adobe named Anil Chakravarthy president and CEO effective December 1, while longtime CEO Shantanu Narayen becomes executive chair. The transition could sharpen the company’s AI strategy, but investors will closely evaluate execution under the new leadership. Adobe CEO succession article Negative Sentiment: Analyst sentiment remains divided ahead of earnings. Several recent calls are Holds or Sells, and concerns include Adobe’s roughly 20% year-to-date decline, an open CFO search and uncertainty over whether AI growth can offset competitive pressure. Adobe analyst earnings preview Negative Sentiment: Retail investors and hedge funds appear sharply split, while reported insider activity shows six open-market sales and no purchases over the past six months. That divergence may reinforce concerns about near-term confidence in the stock. Adobe investor sentiment article Analyst Ratings Changes Several research analysts have recently issued reports on the company. The Goldman Sachs Group reduced their price objective on Adobe from $220.00 to $190.00 and set a “sell” rating for the company in a research note on Friday, June 12th. Jefferies Financial Group increased their price target on shares of Adobe from $230.00 to $285.00 and gave the stock a “hold” rating in a report on Sunday, August 30th. Oppenheimer reissued a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. JPMorgan Chase & Co. decreased their price objective on shares of Adobe from $420.00 to $340.00 and set an “overweight” rating for the company in a research note on Friday, June 12th. Finally, Royal Bank Of Canada increased their price objective on shares of Adobe from $285.00 to $315.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 2nd. 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 company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $278.72.
Check Out Our Latest Stock Report on ADBE
Insider Buying and Selling In other Adobe news, CAO Jillian Forusz sold 416 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the transaction, the chief accounting officer owned 3,824 shares in the company, valued at approximately $1,010,797.92. This represents a 9.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director David Ricks acquired 10,000 shares of the company’s stock in a transaction on Thursday, June 25th. The stock was acquired 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 owned 17,655 shares of the company’s stock, valued at $3,434,074.05. This trade represents a 130.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.20% of the company’s stock.
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 has delivered a 30% gain since my 2026 buy rating a few months back, but I am waiting for the next earnings report before reallocating capital. Despite ADBE's attractive forward PEG ratio of 0.78, broader market overextension and high correlation with NDX/SPX warrant caution. I expect ADBE to decline alongside the Nasdaq and S&P 500 if a market correction occurs, especially if triggered by Fed rate hikes.
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.
ADBE heads into fiscal Q3 earnings with strong AI and subscription momentum, but freemium pressure, rising investments and stiff competition cloud the outlook.
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.
It's been a tough year for software stocks in 2026. Much of the focus has been on high-flying tech stocks such as Apple and Nvidia, which have hit record levels. The threat of artificial intelligence (AI), however, has been weighing significantly on many other types of businesses.
Adobe (ADBE -6.73%) is perhaps the classic example. AI chatbots can create professional-looking images with ease. In the past, consumers might have needed to use Adobe Photoshop to make such advanced visuals. As a result of the AI threat, investors have been dumping Adobe's stock in droves.
Year-to-date, it's down 24%. But it's been rallying in recent months, as the business has continued to perform well, perhaps putting at least some of those fears to rest. Can its rally continue, and can it finish the year above $300?
Image source: Getty Images.
Is Adobe's stock undervalued?Shares of Adobe have been falling sharply due to AI-related concerns. Even though it's been rallying recently, it still trades at 15 times its trailing earnings, and that falls to a multiple of 10 when considering analyst expectations of future profits for the year ahead. Consider that by comparison, the average S&P 500 stock trades at 24 times trailing earnings and 21 times its future profits (based on estimates).
Adobe is clearly a discounted stock, but there's also a valid rationale for this. If demand for its software diminishes over time, then its growth may evaporate. In its most recent quarter, which ended on May 29, the company's revenue rose by 11% when excluding the effects of foreign exchange. That may seem decent, but that doesn't mean the full impact of AI has been felt on the business just yet. Consumers, and especially professionals and businesses, may not simply cancel their subscriptions immediately and rely solely on AI chatbots for image generation. Transitions can take time, especially at the corporate level.
There is risk with Adobe, even at its current price, and the key question is whether there's sufficient margin of safety priced into its valuation to make the stock worth buying today.
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Why I think Adobe's stock will finish the year above $300Adobe may face greater AI-related headwinds, but it has also been incorporating AI into its products and services. Its sales aren't going to just fall off a cliff. And even if revenue growth stalled, paying around 15 times earnings for the tech stock may still not be unreasonable.
I do think there are more reasons for the stock to rise than to fall at its current level. At a time when many tech stocks are overpriced due to AI, Adobe may be a more attractive option, which is why I think it could end up rising above $300 by the end of the year.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Apple, and Nvidia. 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.
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 Inc (NASDAQ:ADBE) shares were down 6.5% on Friday after the company announced a major leadership shake-up, naming Anil Chakravarthy as its next chief executive to succeed longtime CEO Shantanu Narayen.
Chakravarthy, currently president of Adobe's digital experience business, will take over as CEO effective December 1, the start of Adobe's fiscal 2027. He has been at Adobe for roughly six and a half years and previously spent six and a half years at Informatica, including four and a half as CEO, followed by nine and a half years at Symantec.
David Wadhwani, head of Adobe's creative business unit, which accounts for roughly three-quarters of the company's total revenue, is departing the company for other opportunities.
The transition comes as Adobe faces mounting pressure from AI-driven headwinds, growing competition from tools like Canva and Figma (Fortress Investment Group LLC (NYSE:FIG)), and pricing disruption across the creative software industry.
Jefferies analysts said they had expected Wadhwani to be the "rational choice" for CEO given his oversight of three-quarters of Adobe's revenue and his standing inside and outside the company.
With his exit, the firm said further departures and organizational changes are likely, and that board changes may also be needed to better position Adobe for AI.
Chakravarthy's digital experience unit, focused on marketing automation software for enterprise and mid-market clients, represented about a quarter of Adobe's total revenue in fiscal 2025.
The announcement lands just ahead of Adobe's fiscal third-quarter earnings report, scheduled for September 10.
Anil Chakravarthy will replace Shantanu Narayen as CEO on Dec. 1 as Adobe tries to regain investor confidence Summary
Anil Chakravarthy will become Adobe CEO on Dec. 1
Adobe Inc. (ADBE, Financials) is handing over its number one post to an insider during a tough stretch for the software firm.
Shantanu Narayen, who has headed Adobe for almost 18 years, will shift to executive chair and Anil Chakravarthy will replace him as president and CEO on Dec. 1.
The move comes as investors have been wondering how well Adobe can defend businesses like Photoshop and Illustrator at a time when AI tools are making it faster and cheaper to generate digital material. Adobe's shares are down almost 18% this year after plunging more than 21% in 2025.
Chakravarthy joined Adobe in 2020 and currently oversees its client experience business and global field operations. Before Adobe, he served as CEO of Informatica. He has a bigger role than handling a leadership transition.
Adobe has been rolling out AI elements across its products and has seen increasing demand for those tools, but competition from businesses such as Figma and Canva has kept pressure on investor confidence.
Narayen will stay close to the business as executive chairman to provide Chakravarthy with an experienced hand during the changeover.
The next trigger is when Adobe releases fiscal third-quarter results on Sept. 10. Investors will be looking for proof that AI growth is translating into better revenue and a clearer way forward for the company under its incoming CEO.
CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs. Insider Cluster Buys: Stocks that multiple company officers and directors have bought. Double Buys: Companies that both Gurus and Insiders are buying Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back. Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Adobe Inc. (ADBE) fell 3.32% premarket after the company named Anil Chakravarthy president and chief executive effective December 1. Chakravarthy currently runs
Adobe (ADBE) reports earnings next Thursday and will do so as a new CEO readies to take the helm in December. Rick Ducat takes investors through the key support and resistance levels to watch in the software giant into its earnings.
Adobe shares ADBE fell nearly 7% on Friday after the software company announced a leadership transition on Thursday.
Anil Chakravarthy, president of Adobe's Customer Experience Orchestration business, will become president and chief executive officer on Dec. 1, 2026.
Chakravarthy will succeed Shantanu Narayen, who has led Adobe for more than 18 years. Narayen will transition to the role of executive chair.
Narayen said Chakravarthy is an experienced leader with a deep understanding of Adobe's business.
Chakravarthy said he believes Adobe is positioned for its next phase of growth.
The leadership transition comes as Adobe faces growing pressure from artificial intelligence and competition across the software industry.
The company has been a major player in creativity software, but newer competitors and the emergence of AI-powered tools have created additional challenges for its business model.
The CEO announcement was followed by news that David Wadhwani will leave Adobe.
Wadhwani, who has led the company's creativity and productivity business for nearly five years, announced his departure in a LinkedIn post.
Wadhwani had been viewed as a potential candidate for the CEO position.
Jefferies analyst Brent Thill said Wadhwani had been considered the logical choice because his business represented about three-quarters of Adobe's revenue. Wadhwani spent 19 years at Adobe across two separate periods.
The departure adds to a broader series of management changes at the company. Adobe's Chief Financial Officer Dan Durn left the company in June.
Thill expects additional changes as Chakravarthy reshapes the organization.
He also said Adobe's board could see changes aimed at adding deeper artificial intelligence expertise as the company deals with challenges from AI.
Adobe's leadership changes come at a critical point for the company.
AI has made it easier for users to create content through a growing range of free and lower-cost tools, increasing competitive pressure on Adobe's traditional products.
Analysts offered mixed views following the leadership announcement.
Barclays raised its price target on Adobe to $295 from $250 while maintaining an Equalweight rating. RBC Capital also increased its target to $315 from $285 and retained an Outperform rating.
Morgan Stanley took a more cautious stance, downgrading Adobe to Underweight with a $240 price target.
The firm cited concerns that artificial intelligence competition could weigh on recurring revenue from Adobe's Creative Cloud business.
Adobe has also faced pressure from competitors such as Canva and Figma as the software market evolves.
The company must increasingly assess how to price its products as AI challenges the traditional software-as-a-service model, which has historically relied heavily on charging based on the number of users or seats.
Shares have already declined 18% through Thursday's close after falling more than 20% in each of the previous two calendar years.
Investors will receive a fresh update on Adobe's financial performance and outlook when the company reports its fiscal third-quarter results on Sept. 10.
The earnings report will come shortly after the leadership announcement and Wadhwani's departure, giving investors an opportunity to assess the company's business trajectory amid the ongoing shift toward AI.
Adobe Inc (NASDAQ:ADBE) shares were down 6.5% on Friday after the company announced a major leadership shake-up, naming Anil Chakravarthy as its next chief executive to succeed longtime CEO Shantanu Narayen.
Chakravarthy, currently president of Adobe's digital experience business, will take over as CEO effective December 1, the start of Adobe's fiscal 2027. He has been at Adobe for roughly six and a half years and previously spent six and a half years at Informatica, including four and a half as CEO, followed by nine and a half years at Symantec.
David Wadhwani, head of Adobe's creative business unit, which accounts for roughly three-quarters of the company's total revenue, is departing the company for other opportunities.
The transition comes as Adobe faces mounting pressure from AI-driven headwinds, growing competition from tools like Canva and Figma (Fortress Investment Group LLC (NYSE:FIG)), and pricing disruption across the creative software industry.
Jefferies analysts said they had expected Wadhwani to be the "rational choice" for CEO given his oversight of three-quarters of Adobe's revenue and his standing inside and outside the company.
With his exit, the firm said further departures and organizational changes are likely, and that board changes may also be needed to better position Adobe for AI.
Chakravarthy's digital experience unit, focused on marketing automation software for enterprise and mid-market clients, represented about a quarter of Adobe's total revenue in fiscal 2025.
The announcement lands just ahead of Adobe's fiscal third-quarter earnings report, scheduled for September 10.
Index Dow Jones -0,21 % na 53571,45 b. S&P 500 -0,12 % na 7738,27 b. Nasdaq Composite -0,03 % na 26575,97 b.
Přední americké indexy se obchodují v červených číslech. Před otevřením trhu byly reportovány srpnové hodnoty z trhu práce ve Spojených státech, které indikují, že trh práce je nadále silný. Z indexu S&P500 zaznamenávají největší pokles akcie společnosti Fair Isaac Corp (-20 %), když ředitel Federální agentury pro financování bydlení nařídil společnostem Fannie Mae a Freddie Mac, aby všem věřitelům povolil používání VantageScore, čímž podle agentury Bloomberg fakticky ukončil dlouholetý monopol společnosti. Po výsledkovém reportu se nedaří akciím Lululemon Athletica (-16 %). Trhy zklamalo především snížení celoročního výhledu tržeb a ziskovosti. Nově projektuje čisté tržby v rozmezí 10,35-10,50 mld. USD, analytický konsensus byl nastaven na 11,03 mld. USD. Zisk na akcii je projektován ve výši 9,48 až 9,73 USD, očekávalo se 10,84 USD. Ztrácí také softwarová společnost Adobe (-7,6 %), která jmenovala nového generálního ředitele.
Index S&P 500 -0,12 % na 7738,27 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +0,6 % Energie -1,3 % Průmysl +0,4 % Zbytná spotřeba -1,2 % Utility +0 % Zdravotní péče -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Coherent Corp (COHR) +5,7 % Fair Isaac Corp (FICO) -20 % KLA Corp (KLAC) +5,6 % Lululemon Athletica (LULU) -16 % Seagate Technology Holdings (STX) +5,5 % Equifax (EFX) -8,3 % Teradyne (TER) +5,3 % Adobe (ADBE) -7,6 % Western Digital Corp (WDC) +5,2 % Autodesk (ADSK) -6,7 % Zdroj: Bloomberg
Barlow Wealth Partners LLC lessened its holdings in Adobe Inc. (NASDAQ:ADBE – Free Report) by 45.1% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 19,487 shares of the software company’s stock after selling 16,032 shares during the quarter. Barlow Wealth Partners LLC’s holdings in Adobe were worth $4,306,000 at the end of the most recent reporting period.
Other large investors have also modified their holdings of the company. BlackRock Inc. purchased a new stake in Adobe during the 2nd quarter worth approximately $8,437,821,000. Norges Bank purchased a new position in shares of Adobe in the fourth quarter worth $2,275,165,000. Primecap Management Co. CA purchased a new position in shares of Adobe in the second quarter worth $1,071,668,000. Bank of New York Mellon Corp acquired a new stake in shares of Adobe during the second quarter worth $954,468,000. Finally, Deutsche Bank AG acquired a new stake in shares of Adobe during the second quarter worth $750,203,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.
Insider Activity at Adobe In other news, 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 completion of the transaction, the chief accounting officer directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director David Ricks bought 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The stock was purchased at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the purchase, the director owned 17,655 shares in the company, valued at approximately $3,434,074.05. This trade represents a 130.63% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.20% of the stock is owned by insiders.
Adobe Stock Up 2.1% Adobe stock opened at $285.75 on Friday. The business’s 50-day moving average price is $247.91 and its 200 day moving average price is $245.67. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The firm has a market cap of $113.59 billion, a price-to-earnings ratio of 16.35, a price-to-earnings-growth ratio of 0.97 and a beta of 1.42. 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 quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) 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 the consensus estimate of $6.45 billion. During the same period in the previous year, the company posted $5.06 earnings per share. Adobe’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, sell-side analysts anticipate that Adobe Inc. will post 19.81 earnings per share for the current year.
Analysts Set New Price Targets ADBE has been the topic of several research reports. Phillip Securities downgraded Adobe from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. Royal Bank Of Canada lifted their price target on Adobe from $285.00 to $315.00 and gave the stock an “outperform” rating in a research report on Wednesday. CLSA began coverage on Adobe in a research note on Monday, July 20th. They set an “outperform” rating and a $300.00 price target on the stock. Freedom Capital lowered Adobe from a “strong-buy” rating to a “hold” rating in a report on Friday, June 12th. Finally, Sanford C. Bernstein reduced their price objective on Adobe from $447.00 to $379.00 and set an “outperform” rating for the company in a research note on Friday, June 12th. Seven 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 data from MarketBeat.com, Adobe currently has an average rating of “Hold” and a consensus target price of $278.72.
Read Our Latest Research Report on Adobe
Adobe News Roundup Here are the key news stories impacting Adobe this week:
Positive Sentiment: Analysts see upside ahead of earnings. RBC raised its price target to $315 from $285 and maintained an “Outperform” rating, citing expectations that Adobe’s annual recurring revenue could exceed estimates. Adobe is scheduled to report fiscal third-quarter results on September 10. RBC raises Adobe price target Positive Sentiment: Adobe is expanding its AI and workflow ecosystem. The company acquired Indian marketing-intelligence startup Rilo through a deal involving technology licensing and the addition of its team, strengthening Adobe’s marketing-automation and “agentic AI” capabilities. Adobe also introduced an integration with Slack that brings more than 70 Photoshop, Firefly, Acrobat, Illustrator, Premiere and other tools into workplace chats. Adobe acquires Rilo Neutral Sentiment: New CEO named for December. Adobe appointed Anil Chakravarthy, who leads its Customer Experience Orchestration business and has overseen several AI products, as president and CEO effective December 1. Current CEO Shantanu Narayen will become executive chair and assist with the transition. Adobe announces CEO transition Negative Sentiment: Investors were disappointed by the CEO selection. Chakravarthy is an insider, but analysts said investors had been anticipating another longtime business leader for the role. The departure of that executive may signal additional leadership turnover, increasing concerns about strategic continuity during Adobe’s AI transformation. Why Adobe stock is under pressure Negative Sentiment: Competitive and valuation risks remain. Commentators warned that Google’s new AI-powered image-generation and editing tools could intensify competition with Adobe. Analysts remain divided, with some raising targets while others cite AI disruption risks and retain cautious ratings. 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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Stock futures are mixed ahead of fresh labor market data due this morning; the August jobs report will factor into the Fed's decision later this month on interest rates; auto safety regulators said they're looking into Tesla's cybercab after a launch event yesterday; Lululemon shares are plunging after the retailer lowered its outlook; and Adobe named a new CEO. Here's what you need to know today.
SAN JOSE, Calif.--(BUSINESS WIRE)--Adobe (Nasdaq: ADBE) — Adobe's Board of Directors today announced that Anil Chakravarthy, president of Adobe's Customer Experience Orchestration business and worldwide field operations, will become Adobe's next president and chief executive officer and join the Board of Directors effective December 1, 2026. Shantanu Narayen will transition to executive chair and work closely with Chakravarthy to ensure a smooth transition and support Adobe's ongoing transforma.
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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B. Metzler seel. Sohn & Co. AG trimmed its holdings in Adobe Inc. (NASDAQ:ADBE – Free Report) by 14.9% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 44,501 shares of the software company’s stock after selling 7,821 shares during the period. B. Metzler seel. Sohn & Co. AG’s holdings in Adobe were worth $9,123,000 as of its most recent filing with the Securities and Exchange Commission.
Other hedge funds have also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its position in shares of Adobe by 2.1% in the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after acquiring an additional 167 shares in the last quarter. Sivia Capital Partners LLC raised its stake in Adobe by 25.5% in 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 raised its stake in Adobe by 12.8% in the 2nd quarter. United Bank now owns 3,773 shares of the software company’s stock valued at $1,460,000 after purchasing an additional 428 shares during the last quarter. Schnieders Capital Management LLC. lifted its holdings in Adobe by 7.8% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock valued at $1,017,000 after purchasing an additional 190 shares in the last quarter. Finally, Gamco Investors INC. ET AL lifted its holdings in Adobe by 190.6% in the 2nd quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock valued at $1,069,000 after purchasing an additional 1,813 shares in the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.
Insider Buying and Selling at Adobe In other news, Director David A. Ricks acquired 10,000 shares of the business’s stock in a transaction dated Thursday, June 25th. The shares were bought at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the acquisition, the director directly owned 17,655 shares in the company, valued at $3,434,074.05. This trade represents a 130.63% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Jillian Forusz sold 416 shares of Adobe 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 directly owned 3,824 shares in the company, valued at $1,010,797.92. This represents 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.
Key Headlines Impacting Adobe Here are the key news stories impacting Adobe this week: Positive Sentiment: Adobe acquired India-based marketing-intelligence and AI-automation startup Rilo through a deal involving technology licensing and the addition of its team. The acquisition should strengthen Adobe’s “agentic” AI capabilities and represents its second Indian acquisition. Adobe acquires Indian market intelligence startup Rilo Positive Sentiment: Adobe is bringing Photoshop, Firefly, Acrobat, Express, Premiere, InDesign and more than 70 creative tools directly into Slack through an Adobe for Slack MCP app. Broader distribution through Slackbot could increase product usage, support AI adoption and create additional conversion opportunities. Adobe is making its tools available in Slack Positive Sentiment: Royal Bank of Canada raised its Adobe price target to $315 from $285 and maintained an “outperform” rating, citing potential upside from AI growth. Citi also raised its target to $301 ahead of Adobe’s fiscal third-quarter results, expecting a possible beat and raised outlook. Citi boosts Adobe price target before Q3 results Neutral Sentiment: Adobe’s $4 billion Saudi Arabia initiative will provide free access to AI tools for approximately 27 million people. The program could accelerate long-term adoption, but the headline figure represents the potential value of subscriptions rather than an immediate payment or revenue contribution. Saudi Arabia Adobe AI access initiative Negative Sentiment: Investors remain concerned that Google’s new AI image-creation and editing tool could pressure Adobe’s creative-software franchise. Canva, Figma and other AI-native competitors are also challenging Adobe’s moat, while analysts question how quickly Firefly and other AI products will convert free users into paying subscribers. Google AI competition could pressure Adobe Negative Sentiment: Although Adobe recently exceeded earnings and revenue expectations, its reduced annual revenue outlook has kept attention on slowing legacy Creative growth and the sustainability of subscription expansion. The next major catalyst is fiscal third-quarter earnings, scheduled for September 10. Adobe earnings outlook and analyst concerns Adobe Price Performance ADBE opened at $279.79 on Thursday. The company’s 50 day simple moving average is $246.07 and its 200 day simple moving average is $245.51. 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 stock has a market capitalization of $111.22 billion, a PE ratio of 16.01, a P/E/G ratio of 1.00 and a beta of 1.42.
Adobe (NASDAQ:ADBE – Get Free Report) last released its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.82 by $0.14. The firm had revenue of $6.62 billion during the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. Adobe’s revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $5.06 earnings per share. 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, sell-side analysts expect that Adobe Inc. will post 19.81 EPS for the current year.
Analyst Upgrades and Downgrades ADBE has been the subject of a number of recent research reports. Wolfe Research downgraded shares of Adobe from an “outperform” rating to a “peer perform” rating in a report on Friday, June 12th. Barclays reduced their price objective on shares of Adobe from $275.00 to $250.00 and set an “equal weight” rating on the stock in a research note on Friday, June 12th. Bank of America raised their target price on shares of Adobe from $190.00 to $220.00 and gave the stock an “underperform” rating in a research report on Wednesday, August 19th. The Goldman Sachs Group lowered their target price on shares of Adobe from $220.00 to $190.00 and set a “sell” rating for the company in a research note on Friday, June 12th. Finally, Oppenheimer reiterated a “market perform” rating on shares of Adobe in a report on Friday, June 12th. Seven analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $276.92.
Get 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 just posted record AI revenue while its stock trades near multi-year lows, and Wall Street's cautious consensus may be missing what happens when freemium conversions finally kick in.
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Adobe (NASDAQ:ADBE | ADBE Price Prediction) is growing AI revenue at a torrid clip while the stock trades like the business is broken.
CEO Shantanu Narayen told investors that “Adobe delivered record revenue of $6.62 billion in Q2 reflecting strong AI-driven demand across our customer groups.” AI-first ARR tripled year over year and exceeded $500 million. Yet shares are down 16.34% year to date. Can ADBE hit $400 by 2027?
Why Adobe Shares Are Stuck Despite Record AI Growth The market views AI as a threat to Adobe’s core business. Shares are down 17.92% over the past year and 56.03% over five years, despite revenue growth.
Q2 gave bears ammunition. Management confirmed the freemium pivot would create a short-term ARR headwind, and Adobe booked a $70 million non-cash goodwill impairment charge tied to publishing and advertising.
Add CEO succession, a CFO transition on June 15, 2026, and a beta of 1.4, and the stock faces headwinds into fall. Recent coverage warned the market may take years to forgive Adobe.
Wall Street Sees Modest Upside. I Think It Is Too Cautious The consensus analyst target sits at $270.61, below today’s price. Ratings break down to 4 strong buys, 8 buys, 23 holds, 4 sells, and 1 strong sell.
Our model is more constructive. The base case predicted price is $322.24, implying 10.06% upside, with a bull case of $347.95 and a bear case of $273.12. Model confidence is high at 0.9. With bullish analyst sentiment at 30% and earnings climbing, holding a name at 11x forward EPS looks like anchoring.
Path to $400 Per Share Reaching $400 from today’s price of $292.79 would require a 36.6% gain. With forward EPS of $26.26, a price of $400 implies a forward P/E of 15x. Our base case of $322.24 implies 12x, meaning the bold target requires roughly 3 turns of multiple expansion.
Is that achievable? Yes. Our model lifted fair value by an adjustment factor of 1.157, driven by technology sector momentum and positive earnings growth of 7.9%.
Firefly ARR grew approximately 50% quarter over quarter, and Acrobat AI Assistant paid MAU jumped over 150% year over year. Narayen said “AI is accelerating customer behavior at an unprecedented speed.”
The Street’s 2027 EPS estimate sits at $27.49, giving room for multiple re-rating as freemium conversions materialize. The primary risk is that freemium ARR drag lasts longer than management projects.
Where Adobe Trades Today Versus Its Earnings Power At $292.79 against forward EPS of $26.26, ADBE trades at 11x forward earnings. For a business generating 35.3% operating margins and 62.9% return on equity, that multiple is cheap.
Shares sit between a 52-week high of $370.86 and a low of $190.12. Ten-year returns of 182.7% remind investors this was a compounder. Reddit discussion has zeroed in on the setup, with one post titled “ADBE lowest valuation in years”.
Is $400 Realistic? My Verdict Getting to $400 by 2027 requires a 36.6% gain.
Three things need to go right: freemium conversions translate into visible ARR reacceleration, AI-first ARR keeps tripling toward $1 billion, and the market accepts Firefly as a moat. What derails it? A prolonged ARR air pocket that convinces investors freemium is destroying pricing power. We’ve outlined the blueprint for how Adobe could reach $400 in 2027.
Contact [email protected] for any questions or corrections.
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 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.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
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.
In the latest close session, Adobe Systems (ADBE - Free Report) was down 2.29% at $286.08. This move lagged the S&P 500's daily loss of 0.71%. On the other hand, the Dow registered a loss of 0.79%, and the technology-centric Nasdaq decreased by 1.03%.
Shares of the software maker have appreciated by 16.49% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.69%, and the S&P 500's gain of 2.72%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company's earnings report is expected on September 10, 2026. On that day, Adobe Systems is projected to report earnings of $6.08 per share, which would represent year-over-year growth of 14.5%. At the same time, our most recent consensus estimate is projecting a revenue of $6.69 billion, reflecting a 11.75% rise from the equivalent quarter last year.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $24.31 per share and revenue of $26.56 billion. These results would represent year-over-year changes of +16.09% and +11.74%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Adobe Systems holds a Zacks Rank of #4 (Sell).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 12.04. This signifies a discount in comparison to the average Forward P/E of 17.95 for its industry.
We can also see that ADBE currently has a PEG ratio of 0.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Explore the exciting world of Adobe (ADBE -2.29%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
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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Today, Adobe (Nasdaq: ADBE), the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms, announced it will release its third quarter fiscal year 2026 results after the market closes on Thursday, Sept. 10, 2026, followed by a conference call with investors from 2-3 p.m. Pacific Time. The conference call will be streamed live on the Adobe Investor Relations Site. Following the call, a recording and related materials will be available on the site.
Adobe uses its website as a channel of distribution of material company information. Financial, product and other material information regarding the company is routinely posted on and accessible at www.adobe.com/ADBE.
About Adobe
Adobe (Nasdaq: ADBE) 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260831054310/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
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.
SAN JOSE, Calif.--(BUSINESS WIRE)--Today, Adobe (Nasdaq: ADBE), the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms, announced it will release its third quarter fiscal year 2026 results after the market closes on Thursday, Sept. 10, 2026, followed by a conference call with investors from 2-3 p.m. Pacific Time. The conference call will be streamed live on the Adobe Investor Relations Site. Following the call, a reco.
Archer Investment Corp purchased a new position in Adobe Inc. (NASDAQ:ADBE – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 2,614 shares of the software company’s stock, valued at approximately $536,000.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Kingsview Wealth Management LLC purchased a new stake in Adobe during the second quarter worth $890,000. Beacon Pointe Advisors LLC acquired a new stake in shares of Adobe in the second quarter worth approximately $2,104,000. Kimelman & Baird LLC purchased a new stake in Adobe during the 2nd quarter valued at about $107,000. Livforsakringsbolaget Skandia Omsesidigt purchased a new position in shares of Adobe during the 2nd quarter worth $580,000. Finally, Rakuten Investment Management Inc. purchased a new position in Adobe in the second quarter worth approximately $20,103,000. Institutional investors and hedge funds own 81.79% of the company’s stock.
Analyst Ratings Changes ADBE has been the subject of a number of recent research reports. Morgan Stanley lowered Adobe from an “equal weight” rating to an “underweight” rating and decreased their target price for the company from $365.00 to $240.00 in a report on Tuesday, July 21st. Wall Street Zen cut Adobe from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. BMO Capital Markets lowered their price target on Adobe from $285.00 to $230.00 and set a “market perform” rating on the stock in a report on Friday, June 12th. Wells Fargo & Company reduced their target price on Adobe from $330.00 to $250.00 and set an “overweight” rating on the stock in a research note on Friday, June 12th. Finally, Jefferies Financial Group lowered their price target on Adobe from $290.00 to $230.00 and set a “hold” rating for the company in a research report on Friday, June 12th. Seven 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.com, the stock has an average rating of “Hold” and a consensus target price of $270.96.
Read Our Latest Report on Adobe Adobe Price Performance NASDAQ ADBE opened at $291.52 on Friday. 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 $115.88 billion, a PE ratio of 16.68, a PEG ratio of 0.97 and a beta of 1.40. The stock’s 50-day moving average price is $240.67 and its two-hundred day moving average price is $245.14.
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 for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. The company 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 business’s quarterly revenue was up 12.7% on a year-over-year basis. During the same period 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, analysts predict that Adobe Inc. will post 19.81 EPS for the current year.
Insiders Place Their Bets In other Adobe news, Director David A. Ricks acquired 10,000 shares of Adobe stock in a transaction dated Thursday, June 25th. The stock was bought at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the purchase, the director directly owned 17,655 shares in the company, valued at approximately $3,434,074.05. This represents a 130.63% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Jillian Forusz sold 416 shares of the 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 sale, the chief accounting officer owned 3,824 shares in the company, valued at approximately $1,010,797.92. This trade represents a 9.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.20% of the company’s stock.
Trending Headlines about Adobe Here are the key news stories impacting Adobe this week:
Positive Sentiment: Adobe’s stock broke above technical resistance near $275 and $285 and reclaimed key moving averages. Analysts identified potential upside targets around $306.30 and $330.61, while a developing “golden cross” pattern is supporting bullish momentum ahead of the company’s upcoming earnings report. Adobe Stock Breakout Targets $306, Then $330 as ADBE Reverses Positive Sentiment: Strong results and guidance remain a fundamental support. Adobe’s latest quarter exceeded consensus estimates for both earnings and revenue, with revenue up 12.7% year over year; management’s fiscal 2026 EPS guidance is $24.35–$24.45. Positive Sentiment: Adobe is expanding AI capabilities across Photoshop, Firefly, Acrobat and Adobe Express. Photoshop’s optional prompt-based AI editing mode could improve product engagement and reinforce Adobe’s competitive position in creative software. Adobe Photoshop Adds a Whole New AI Editing Mode Positive Sentiment: An expanded, multiyear partnership with Stagwell will integrate Adobe’s data intelligence, creative transformation and AI tools into enterprise marketing initiatives, potentially supporting customer acquisition and retention. Stagwell Expands Strategic Partnership with Adobe Neutral Sentiment: Adobe benefited from a broader enterprise-software rally after Salesforce reported strong results, raised guidance and announced an Anthropic partnership. The move is a sector read-through rather than an Adobe-specific financial update. Salesforce Soars as Enterprise Software Rebounds Negative Sentiment: A comparison with Shopify suggests Adobe is lagging in AI-driven ecommerce, where Shopify is benefiting from faster gross merchandise volume growth, greater payments adoption and expanding agentic-commerce capabilities. This may raise concerns about Adobe’s relative growth opportunities outside its core creative and document franchises. SHOP vs. ADBE: Which Stock Has the Edge in AI-Driven Ecommerce? 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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RIYADH, Saudi Arabia--(BUSINESS WIRE)--Today at LEAP 2026, Adobe (Nasdaq: ADBE) — the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms — announced an expanded partnership with the Ministry of Communications and Information Technology (MCIT) and HUMAIN, a PIF company, delivering full-stack artificial intelligence capabilities globally, to advance Saudi Arabia's thriving creative sector. Through the partnership, Adobe.
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.
Momentum investors have abandoned Adobe, and that retreat may be exactly what makes the stock worth watching. Here is what the cash flow, insider activity, and AI conversion numbers reveal about where ADBE could be headed.
Adobe (NASDAQ:ADBE | ADBE Price Prediction) has been abandoned by momentum investors, but that setup makes it interesting heading into the back half of 2026. After a punishing drawdown from last summer’s highs, the AI-first pivot is producing real numbers, insiders have been stepping in, and the valuation looks disconnected from underlying cash generation. Adobe may be one of the more contrarian large-cap tech setups going into 2026.
Our 24/7 Wall St. price target for Adobe is $309.57, implying 12.05% upside from the current price of $276.27. Our recommendation is buy, and our confidence level is high at 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $276.27 24/7 Wall St. Price Target $309.57 Upside 12.05% Recommendation BUY Confidence Level 90% Why Momentum Turned Against Adobe ADBE is down 23.7% over the past year and 21.06% year to date, trading roughly 27% below its 52-week high of $370.86. The stock touched a June low of $190.12 after Adobe announced a freemium pivot. But momentum has shifted: shares are up 22.73% over the past month and 8.75% over the past week.
Q2 FY2026 gave bulls ammunition. Revenue hit $6.62 billion, up 13% year over year, with non-GAAP EPS of $5.96 and total ARR reaching $27.1 billion. AI-first ARR tripled year over year to exceed $500 million, and management raised full-year guidance to revenue of $26.5 to $26.6 billion and non-GAAP EPS of $24.35 to $24.45.
CEO Shantanu Narayen stated: “We believe now is the time to aggressively acquire the next generation of Adobe loyalists.”
Bull Case: Upside If Freemium Converts Our bull scenario points to $339.08, a 22.74% return, if freemium converts faster than expected. Acrobat and Express monthly active users surpassed 850 million, growing 20% year over year, and Creative freemium MAU jumped past 90 million. Firefly ARR was approaching $300 million, and the SEMrush acquisition adds $480 million in ARR plus a new brand-visibility franchise.
Enterprise customers above $10 million ARR grew more than 20% year over year, and Director David Ricks bought 10,000 shares at $194.51 in June, a rare insider vote of confidence.
What Could Go Wrong Our downside scenario points to $264.57, a 4.24% loss, if freemium fails to convert. Analyst distribution is telling: 23 Hold ratings dominate versus 8 Buys and 4 Strong Buys. Leadership churn is real, with CFO Dan Durn departing and Steve Day named interim.
Management admitted freemium is a deliberate near-term ARR headwind. GAAP EPS took a $70 million goodwill impairment hit in Q2. Bulls counter that non-GAAP EPS still grew 18% year over year and the ARR trade-off builds lifetime value, with returns playing out in 2027.
How Adobe Compares to Peers Adobe looks cheap against direct software peers. Autodesk (NASDAQ:ADSK) is the cleanest creative-software comparable. Autodesk’s Q1 FY27 revenue grew 18.4% to $1.93 billion, with FY27 non-GAAP EPS guided to $12.40 to $12.65. On roughly $240 per share, ADSK trades near 19x forward earnings, nearly double Adobe’s 10x.
Salesforce (NYSE:CRM) is the marketing-cloud peer under the same AI-monetization microscope. CRM carries a trailing P/E of 23 and Agentforce plus Data 360 ARR of nearly $3.4 billion, up more than 200% year over year. Adobe’s AI-first ARR is smaller but growing at a similar clip, and Adobe trades at less than half CRM’s multiple.
Company Forward/Trailing P/E Market Cap Adobe 10x fwd $109.4B Autodesk ~19x fwd $53.7B Salesforce 23x trailing $171.2B Adobe Price Projection 2026 to 2030 The 24/7 Wall St. price target of $309.57, a buy rating, and 90% confidence reflect a stock where valuation has overshot fundamental deterioration. Watch for Firefly and Acrobat freemium conversion showing up in Q4 FY26 ARR as a bullish confirmation.
The bearish signal would be the CEO search dragging into 2027 without a named successor alongside enterprise ARR growth slipping below 10%. On balance, the setup skews favorably into 2027.
Year 24/7 Wall St. Price Target 2026 $290 2027 $311 2028 $331 2029 $370 2030 $383 These projections assume Adobe converts freemium MAU into paid ARR and names a permanent CEO and CFO. Significant upside or downside could come from generative-AI competition or faster-than-expected re-rating as AI-first ARR crosses $1 billion.
Contact [email protected] for any questions or corrections.
Key Takeaways Adobe's AI-first ARR more than tripled year over year to above $500 million in Q2 FY26.Firefly ending ARR approached $300 million as apps and credit-pack ARR rose about 50% sequentially.Acrobat AI Assistant ARR tripled, while Customer Experience Orchestration AI-first ARR quadrupled. Adobe (ADBE - Free Report) is benefiting from accelerating artificial intelligence (AI) monetization across its creativity, productivity and customer-experience portfolio. This is strengthening ADBE’s ability to compete with Microsoft (MSFT - Free Report) and Salesforce (CRM - Free Report) in AI-powered productivity and enterprise workflows. Adobe’s AI-first annualized recurring revenues (ARR) more than tripled year over year to above $500 million in the second quarter of fiscal 2026, while quarterly revenues reached a record $6.62 billion, up 13% year over year.
Firefly is becoming an important component of Adobe’s AI monetization strategy. Firefly ending ARR, including apps, credit plans and enterprise offerings, approached $300 million, while ARR generated through Firefly apps and credit packs increased roughly 50% sequentially. Firefly users converting from free to paid plans are showing significant generative-credit consumption, creating opportunities for Adobe to generate usage-based revenues alongside traditional subscriptions. Adobe Creative Agent further expands this model, with agent usage monetized through the company’s existing credit-consumption framework.
Adobe is gaining traction from AI within document productivity. Acrobat AI Assistant ARR grew roughly threefold year over year, while paid monthly active users jumped more than 150%. Lifetime AI users in Acrobat tripled year over year. Meanwhile, Business Professionals & Consumers’ MAU surpassed 850 million, supported by adoption of Acrobat AI Assistant, Express creation and PDF Spaces.
Enterprise AI provides another significant growth avenue. Customer Experience Orchestration AI-first ARR increased fourfold year over year, while GenStudio ARR rose more than 25%. Subscription revenues from Adobe Experience Platform and native apps climbed more than 30% and 80% of AEP and AEM customers, respectively, are using agentic capabilities. More than 1,500 trials are underway for Adobe’s agentic web offerings, while Forward Deployed Engineering and Integrated Services grew 60% sequentially. These trends broaden Adobe’s opportunity across subscription, consumption-based and AI-driven enterprise revenues.
Rapid AI Monetization Across Adobe’s PortfolioAdobe faces rising competition from Microsoft and Salesforce as both companies accelerate AI monetization across productivity and enterprise workflows. Microsoft 365 Copilot surpassed 30 million paid seats, with net seat additions more than doubling sequentially. Microsoft is also expanding from per-seat pricing toward seat-plus-consumption models. Usage-based credit consumption in customer service increased fourfold sequentially, while GitHub Copilot revenues accelerated more than 60% quarter over quarter following the introduction of usage-based billing.
Salesforce is strengthening its challenge through Agentforce. Agentforce ARR exceeded $1 billion, while Agentforce, Data 360 and Informatica Cloud generated $3.4 billion in AI and data ARR. Salesforce is monetizing AI through higher-value seats, additional users and consumption-based Flex Credits. Bookings for its premium A1E and A4X offerings grew nearly 60% year over year, while Headless 360 opens additional opportunities to monetize Salesforce interactions across external AI surfaces. These initiatives increase competitive pressure on Adobe across Acrobat AI, GenStudio, Experience Platform and CX Enterprise.
ADBE’s Share Price Performance, Valuation & EstimatesShares of Adobe have declined 23.6% year to date, underperforming the broader Zacks Computer and Technology sector’s 28.3% growth.
ADBE Stock’s Price Performance
Image Source: Zacks Investment Research
ADBE stock is trading at a discount, with a forward 12-month price-to-earnings ratio of 10.31X compared with the broader sector’s 20.83X. 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.
It's all bearish example options trades on today's Big 3. @Theotrade's Don Kaufman sees downside in Coca-Cola (KO) shares as the stock hits all-time highs, expects bearish trends to continue dragging Adobe (ADBE) lower, and explains why Tesla (TSLA) will face headwinds due to everyone turning their attention to SpaceX's (SPCX).
Salesforce spent months as the broken name in enterprise software, dragging the sector's AI credibility down with it. Now one earnings report and a surprise Anthropic partnership are forcing the bears to rethink everything.
Enterprise software is leading Thursday morning after Salesforce’s fiscal Q2 2027 beat and Claudeforce announcement reset the sector’s AI narrative. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is up 3% to $105.19 this morning. At the same time, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.8% to $717.44, a clear tell that today’s strength is centered inside software rather than broad large-cap technology.
Salesforce (NYSE:CRM | CRM Price Prediction) stock is up 14% to $234.90, ending a months-long slump. Additionally, ServiceNow (NYSE:NOW) shares are climbing 5% to $131.90 on the sympathy bid. Adobe (NASDAQ:ADBE) stock is up 3% to $282.29, marking its own catch-up rally.
The move matters because Salesforce stock was down 22% for the year through Wednesday’s close, the broken name inside enterprise software. The bears have argued for months that generative AI models could disintermediate legacy CRM platforms, dragging the multiple toward a value-trap zone. Today’s gap higher, if it holds, puts that disruption thesis on defense with hard numbers rather than commentary.
Claudeforce and a Guidance Raise Fuel the Rebound Salesforce reported fiscal Q2 2027 revenue of $11.35 billion, up 11% from a year earlier, with current remaining performance obligation of $33.5 billion, up 14%, against StreetAccount consensus of $33.22 billion. The company raised its full-year FY27 revenue guidance by $200 million to a range of $46.1 billion to $46.4 billion, up from the May range of $45.9 billion to $46.2 billion. Q3 revenue is guided to $11.42 billion to $11.50 billion, against analyst expectations of $11.41 billion, an above-the-line result on both the top line and the bookings pipeline.
The AI figures did the heavy lifting for Salesforce. Its combined Agentforce and Data Cloud annual recurring revenue reached nearly $3.9 billion, up more than 210% year over year, with Agentforce alone surpassing $1.5 billion in ARR, a 240% increase. Customers completed 3.2 billion Agentic Work Units in the second quarter, up 97% from the prior quarter, with seven billion delivered across Agentforce and Slack to date, and Salesforce and Anthropic unveiled Claudeforce, a plugin carrying 37 prebuilt sales skills, with open beta expected in September and Claude becoming the default model in Slack.
Bull and Bear Cases in One Report The revenue raise, the cRPO beat, and the Agentforce ARR ramp are the genuine strength inside this report. Non-GAAP diluted EPS of $5.90 matched the LSEG consensus estimate rather than beating it, and GAAP net income of $3.53 billion, or $4.29 per diluted share, leaned on a $2.6 billion investment gain tied in part to Salesforce’s Anthropic stake rather than pure operations. Chief Financial and Operating Officer Robin Washington told investors order volumes have reached a four-year high, which is arguably the cleanest signal of underlying demand.
CEO Marc Benioff framed the partnership as “the best of both worlds,” bringing together what he called “the world’s #1 AI and #1 CRM.” The $200 million guidance raise splits into $100 million of organic growth and $200 million from the pending acquisitions of Contentful and Fin, partially offset by a $100 million foreign exchange headwind. Both deals are expected to close during the fiscal third quarter.
Peers Ride the Software Wave The sympathy bid is broadening across enterprise software, where every AI-adjacent large-cap has been guilty until proven innocent this year. ServiceNow and Adobe are the obvious peers catching the tailwind, and the software ETF is running well ahead of broader large-cap technology, a clean rotation signal into names with proven agentic ARR. Notably, Palantir Technologies (NASDAQ:PLTR) stock is up 2% to $180.75 after leading the enterprise AI narrative for most of the year.
Ticker Move Price CRM +10% $226.80 NOW +3% $129.47 ADBE +1% $277.03 PLTR -0.2% $177.22 What to Watch Next The near-term Salesforce calendar is unusually thick. Salesforce hosts its Investor Day at Dreamforce on September 16, the Contentful and Fin acquisitions are expected to close during fiscal Q3 2027, and the final settlement of the $25 billion accelerated share repurchase is expected in October. Each is a real catalyst window that could influence how the market prices the AI story from here.
Traders can watch for a session close that holds today’s gap, since a fill of the opening move would signal residual skepticism about the durability of the AI monetization ramp. Investors sizing new exposure to Salesforce, ServiceNow, or Adobe should keep their positions moderate given how much of today’s move rests on one report and one partnership. A cautious allocation with room to add on any pullback keeps their risk manageable while the Investor Day, the acquisition closings, and the ASR settlement all play out.
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Buy Adobe (ADBE). The stock broke above $275 and just formed a golden cross (50-day/200-day WMA), with an inverted head-and-shoulders pointing to a trend reversal. The setup lines up with earnings: forward P/E ~11 vs sector ~23 and Rule of 40 ~50% (11% revenue growth + 39% FCF margin) means the market is pricing in too much bad news. Upside path: $300 first, then $362 if it clears $300.
Key Risk: Earnings disappoint materially or guidance confirms AI/SaaS demand is deteriorating, causing the $275 breakout to fail and the chart to roll back below $260.
SaaS momentum buy (CRM spillover)
Buy Salesforce (CRM). The article notes CRM surged on strong earnings and that strength is spilling into Adobe and software peers. If software sentiment is turning, CRM’s relative strength can keep pulling the whole group higher, supporting ADBE’s post-earnings bid.
Key Risk: CRM’s earnings strength is a one-off and the next quarter’s guidance reintroduces growth fears, reversing the software momentum trade.
Adobe stock continued its strong rally this week, reaching its highest level since February this year. ADBE has soared by 52% from its lowest level this year, and this rally may continue after forming a golden cross pattern as its earnings loom.
The daily chart shows that ADBE stock has soared in recent months, climbing from a June low of $190 to its current price of $289. The rally was driven by investors buying the dip and a broader rebound in software stocks. Adobe's uptrend continued on Thursday, boosted by Salesforce shares surging after a strong earnings report.
Adobe has moved above the crucial resistance level of $275, its highest level on June 1, a sign that bulls have prevailed. Most importantly, it has now formed a golden cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) crossed each other. This pattern normally leads to more gains over time.
There are also signs that the stock has formed an inverted head-and-shoulders pattern, which is a common reversal sign. This pattern is made up of a head at $190, shoulders, and a neckline at $275.
Therefore, the most likely scenario is where the stock continues rising, with the initial target to watch being at $300. A move above that level will point to further gains, potentially to the crucial resistance level of $362, its highest level in December last year. A drop below the crucial support level of $260 will invalidate the bullish outlook.
ADBE stock chart | Source: TradingView
Adobe, a company that owns popular brands like Photoshop, Illustrator, InDesign, Lightroom, Acrobat, Bridge, Animate, and Behance, has come under substantial pressure in the past few years. Its stock has plunged by double digits, making it a fallen angel.
Adobe shares have pulled back as investors reacted to the ongoing SaaSPocalypse fears. This is a situation where investors are fearing that software companies will be disrupted by AI tools. Adobe’s management has denied claims that AI will disrupt its business.
The recent sell-off turned Adobe into one of the cheapest names in the stock market. Seeking Alpha data shows that the company trades at a forward price-to-earnings ratio of 11.20, much lower than the sector median of 22.90. Its five-year average was 25.
The company also has an attractive Rule of 40 metric of 50%. It is made up of a revenue growth of 11% and a free cash flow margin of 39%. A Rule of 40 metric of 40 and above is a sign that it is trading at a bargain level.
The upcoming earnings report is expected to show that its revenue grew in the last quarter. Its revenue is expected to come in at $6.7 billion, up by 11.8% from what it made in the same period last year. For the year, the company is expected to jump by 11.60% to $26 billion.
With its stock trading at bargain levels, chances are that it will announce a big share buyback. In April, the comany announced a $25 billion authorization, which will see it continue reducing its outstanding shares. Over time, the company has reduced its outstanding shares from 472 million in 2022 to the current 399 million.
ADBE weekly chart shows recovery of key structure resistance as correction further completes. Source: TradingView 20-Day Line Opens Path to $306.30 Dynamic support was confirmed at the 20-day moving average during that consolidation, identifying it as a key near-term dynamic support line for the developing advance. Improving bullish momentum will shortly be signaled if the 20-day moving average crosses above the 200-day moving average, a cross that is now close with the two averages near $258.25 and $269.18.
Near-term, the next upside target is the lower swing high at $306.30. Higher objectives then start around the 38.2% Fibonacci retracement at $330.61, which matches support from April 2025 and adds to that level’s significance. The downswing being measured is contained within a larger decline, so $330.61 remains a conservative estimate rather than an exhaustive ceiling.
First Pullback Tests Fresh Breakout Levels Traders will be watching for the first pullback following this week’s breakout to test support levels before another anticipated leg higher. That would by typical behavior after a breakout through stacked resistance. Key areas to watch start with the same $285.36 and $275.44 swing highs that were just cleared. The 200-day moving average at $269.18 is also an important area, along with the 20-day moving average, now near $268.25. Those are the levels that will show whether this week’s reversal above $275.44 and $285.36 was only a brief squeeze or the start of a lasting change in character.
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ADBE's 16% monthly rebound, discounted valuation and accelerating AI monetization support the stock, but competition and heavy AI spending keep it a hold.
Biondo Investment Advisors LLC purchased a new stake in Adobe Inc. (NASDAQ:ADBE – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 12,913 shares of the software company’s stock, valued at approximately $2,647,000.
Several other hedge funds and other institutional investors also recently bought and sold shares of ADBE. Nicholas Company Inc. increased its stake in Adobe by 7.6% in the fourth quarter. Nicholas Company Inc. now owns 174,626 shares of the software company’s stock valued at $61,117,000 after acquiring an additional 12,400 shares during the period. Wealthfront Advisers LLC raised its position in Adobe by 13.2% in the fourth quarter. Wealthfront Advisers LLC now owns 55,179 shares of the software company’s stock worth $19,312,000 after purchasing an additional 6,426 shares in the last quarter. Orange Investment Advisors Inc. lifted its stake in Adobe by 21.6% during the fourth quarter. Orange Investment Advisors Inc. now owns 29,541 shares of the software company’s stock worth $10,339,000 after purchasing an additional 5,254 shares during the period. Ashton Thomas Private Wealth LLC lifted its stake in Adobe by 92.7% during the fourth quarter. Ashton Thomas Private Wealth LLC now owns 22,876 shares of the software company’s stock worth $8,007,000 after purchasing an additional 11,003 shares during the period. Finally, Johnson Financial Group Inc. acquired a new stake in Adobe during the second quarter valued at approximately $2,289,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.
Adobe Price Performance NASDAQ ADBE opened at $275.30 on Monday. The firm has a market cap of $109.43 billion, a PE ratio of 15.75, a price-to-earnings-growth ratio of 0.93 and a beta of 1.40. Adobe Inc. has a one year low of $190.12 and a one year high of $370.86. The stock’s 50 day simple moving average is $232.61 and its 200 day simple moving average is $244.65. 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 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. The firm 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 business’s revenue for the quarter was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the company 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. As a group, sell-side analysts forecast that Adobe Inc. will post 19.8 earnings per share for the current fiscal year. Analyst Upgrades and Downgrades Several equities research analysts have recently weighed in on ADBE shares. The Goldman Sachs Group lowered their price objective on Adobe from $220.00 to $190.00 and set a “sell” rating on the stock in a research note on Friday, June 12th. CLSA began coverage on Adobe in a research report on Monday, July 20th. They set an “outperform” rating and a $300.00 target price for the company. Jefferies Financial Group decreased their price target on Adobe from $290.00 to $230.00 and set a “hold” rating on the stock in a research note on Friday, June 12th. Citizens Jmp reiterated a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. Finally, Wolfe Research lowered Adobe from an “outperform” rating to a “peer perform” rating in a research note on Friday, June 12th. Seven investment 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 stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $270.96.
View Our Latest Analysis on Adobe
Adobe News Summary Here are the key news stories impacting Adobe this week:
Positive Sentiment: Bank of America raised its Adobe price target, citing the company’s potential to monetize AI and its positioning within a broader software-sector rally. The forecast increase has reinforced bullish sentiment toward ADBE. Bank of America price-target increase Positive Sentiment: Adobe expanded Firefly’s capabilities by making AI-generated music, voiceovers, and sound effects broadly available. The move strengthens Adobe’s creative-AI product portfolio and could support new user adoption, engagement, and revenue opportunities. Adobe Firefly audio tools Positive Sentiment: An Adobe survey reported that 87% of creators say AI is helping them grow their businesses. The findings support demand for Adobe’s AI tools, although survey data is not a direct measure of financial performance. Adobe creator AI report Neutral Sentiment: Several analysts and market commentators describe Adobe’s valuation as attractive after its recovery, with some viewing the rebound as the beginning of a stronger turnaround. However, the stock’s outlook remains dependent on converting AI interest into sustained growth and cash flow. Adobe recovery analysis Negative Sentiment: Adobe has risen roughly 45% from its 2026 low, prompting caution that much of the near-term recovery may already be priced in. One analysis recommends taking some profits despite still-reasonable valuation metrics. Adobe rally and valuation analysis Negative Sentiment: Commentary warning that profitability alone cannot protect companies from intensifying competition highlights a longer-term risk for Adobe, particularly as generative-AI rivals pressure pricing and product differentiation. Profitability and competition analysis Insider Transactions at Adobe In related news, Director David A. Ricks acquired 10,000 shares of the firm’s stock in a transaction 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 acquisition, the director directly owned 17,655 shares in the company, valued at $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, CAO Jillian Forusz sold 416 shares of the firm’s stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total transaction of $109,961.28. Following the completion of the sale, 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. 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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Bank of Nova Scotia acquired a new stake in Adobe Inc. (NASDAQ:ADBE – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 219,086 shares of the software company’s stock, valued at approximately $44,917,000. Bank of Nova Scotia owned about 0.06% of Adobe at the end of the most recent reporting period.
A number of other large investors have also recently modified their holdings of ADBE. BlackRock Inc. bought a new stake in shares of Adobe during the 2nd quarter worth $8,437,821,000. State Street Corp grew its stake in shares of Adobe by 1.7% during the third quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock worth $7,277,941,000 after buying an additional 352,448 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Adobe by 3.7% during the fourth quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock worth $4,027,170,000 after buying an additional 414,049 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Adobe by 9.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 6,792,275 shares of the software company’s stock worth $1,651,066,000 after buying an additional 563,772 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Adobe in the 4th quarter valued at $2,275,165,000. Institutional investors and hedge funds own 81.79% of the company’s stock.
Insider Buying and Selling 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 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director David A. Ricks purchased 10,000 shares of the business’s stock in a transaction 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 transaction, 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. Additional details regarding this purchase are available in the official SEC disclosure. 0.20% of the stock is owned by insiders.
Adobe Stock Performance NASDAQ:ADBE opened at $275.30 on Monday. 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 fifty-two week low of $190.12 and a fifty-two week high of $370.86. The company has a 50 day simple moving average of $232.61 and a two-hundred day simple moving average of $244.65. The company has a market capitalization of $109.43 billion, a PE ratio of 15.75, a P/E/G ratio of 0.93 and a beta of 1.40. Adobe (NASDAQ:ADBE – Get Free Report) last issued its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 the consensus estimate of $6.45 billion. During the same quarter in the previous year, the company earned $5.06 EPS. The company’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. Research analysts anticipate that Adobe Inc. will post 19.8 earnings per share for the current year.
Adobe News Roundup Here are the key news stories impacting Adobe this week:
Positive Sentiment: Bank of America raised its Adobe price target, citing the company’s potential to monetize AI and its positioning within a broader software-sector rally. The forecast increase has reinforced bullish sentiment toward ADBE. Bank of America price-target increase Positive Sentiment: Adobe expanded Firefly’s capabilities by making AI-generated music, voiceovers, and sound effects broadly available. The move strengthens Adobe’s creative-AI product portfolio and could support new user adoption, engagement, and revenue opportunities. Adobe Firefly audio tools Positive Sentiment: An Adobe survey reported that 87% of creators say AI is helping them grow their businesses. The findings support demand for Adobe’s AI tools, although survey data is not a direct measure of financial performance. Adobe creator AI report Neutral Sentiment: Several analysts and market commentators describe Adobe’s valuation as attractive after its recovery, with some viewing the rebound as the beginning of a stronger turnaround. However, the stock’s outlook remains dependent on converting AI interest into sustained growth and cash flow. Adobe recovery analysis Negative Sentiment: Adobe has risen roughly 45% from its 2026 low, prompting caution that much of the near-term recovery may already be priced in. One analysis recommends taking some profits despite still-reasonable valuation metrics. Adobe rally and valuation analysis Negative Sentiment: Commentary warning that profitability alone cannot protect companies from intensifying competition highlights a longer-term risk for Adobe, particularly as generative-AI rivals pressure pricing and product differentiation. Profitability and competition analysis Wall Street Analyst Weigh In Several research firms recently weighed in on ADBE. Phillip Securities downgraded Adobe from a “strong-buy” rating to a “hold” rating in a report on Monday, June 29th. BMO Capital Markets lowered their target price 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 issued a $200.00 target price (down from $350.00) on shares of Adobe in a research report on Friday, June 12th. HSBC raised Adobe from a “hold” rating to a “buy” rating and lifted their price target for the company from $282.00 to $308.00 in a research note on Thursday, July 2nd. Finally, Wells Fargo & Company reduced their price target on Adobe from $330.00 to $250.00 and set an “overweight” rating on the stock in a report on Friday, June 12th. Seven analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat.com, Adobe currently has a consensus rating of “Hold” and a consensus target price of $270.96.
Read Our Latest Report on Adobe
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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Apple (AAPL -0.63%) primarily generates revenue by designing, manufacturing, and selling a broad portfolio of consumer electronics, including smartphones, personal computers, tablets, and wearable devices, as well as by operating digital content storefronts, licensing its intellectual property, and offering various subscription services such as streaming video and cloud storage.
While confirming a transition in its chief executive role and modifying its digital storefront fee structures in the European Union, it also expanded its domestic manufacturing footprint in Texas. It reported an operating margin of approximately 33% for the quarter ended June 27, 2026.
Adobe: Generating Predictable RevenueAdobe (ADBE +1.13%) primarily earns its revenue by providing subscription-based software applications that empower individual creators, marketing agencies, and large enterprises to produce digital media, manage electronic documents, conduct web conferencing, and optimize their digital advertising campaigns across multiple channels.
It agreed to acquire an image-enhancement technology company and announced new enterprise training initiatives. It simultaneously addressed service disruptions across its network while reporting an operating margin of about 34% for the quarter ended May 29, 2026.
Why Revenue Matters for InvestorsRevenue here refers to the standardized income statement revenue line item, and tracking this figure over time helps investors assess whether a company is successfully expanding its core business operations before accounting for operating expenses and taxes.
Image source: The Motley Fool.
Quarterly Revenue for Apple and AdobeCalendar quarterApple RevenueAdobe RevenueQ3 2024$94.9 billion (quarter ended Sept. 28, 2024)$5.4 billion (quarter ended Aug. 30, 2024)Q4 2024$124.3 billion (quarter ended Dec. 28, 2024)$5.6 billion (quarter ended Nov. 29, 2024)Q1 2025$95.4 billion (quarter ended March 29, 2025)$5.7 billion (quarter ended Feb. 28, 2025)Q2 2025$94.0 billion (quarter ended June 28, 2025)$5.9 billion (quarter ended May 30, 2025)Q3 2025$102.5 billion (quarter ended Sept. 27, 2025)$6.0 billion (quarter ended Aug. 29, 2025)Q4 2025$143.8 billion (quarter ended Dec. 27, 2025)$6.2 billion (quarter ended Nov. 28, 2025)Q1 2026$111.2 billion (quarter ended March 28, 2026)$6.4 billion (quarter ended Feb. 27, 2026)Q2 2026$109.4 billion (quarter ended June 27, 2026)$6.6 billion (quarter ended May 29, 2026)Data source: Company filings. Data as of Aug. 21, 2026.
Foolish TakeMost of Apple's revenue still comes from selling devices, making it dependent on the holiday-shopping surge in the calendar fourth quarter. Out of its $109 billion in total revenue in the most recent quarter, iPhone contributed $54 billion.
Adobe has reported consistently low double-digit quarterly growth over the last two years. Its total revenue grew 12.7% year over year in the most recent quarter. It derives virtually all of its revenue from subscriptions, contributing to consistent increases quarter-to-quarter.
However, Apple's iPhone has experienced a surge in revenue growth over the last year, with segment sales increasing at a rate of 20%+ for three consecutive quarters. While iPhone doesn't experience this level of growth every year, it shows that this top consumer brand still has a strong pull on consumers' wallets when it has the right lineup.
For Adobe, it will need to continue to show consistent growth to ease fears that AI will create new competition for its software products. Its revenue has accelerated over the last two quarters. Investors should watch for continued strength, particularly given the stock's low price-to-earnings ratio.
Adobe (NASDAQ:ADBE | ADBE Price Prediction) has been one of the most punished large-cap software names of the past year, and the discount has finally gotten interesting. The stock trades at 10x forward earnings, a multiple typically reserved for mature hardware companies rather than a software business generating $27.10 billion in ARR.
Our 24/7 Wall St. price target for Adobe is $307.15, implying roughly 12% upside from the current quote of $276.63. The recommendation is buy, with our model expressing high confidence at 90%.
Metric Value Current Price $276.63 24/7 Wall St. Price Target $307.15 Upside 11.99% Recommendation BUY Confidence Level 90% Why the Selloff Created the Setup Adobe is down 22.22% year to date and 22.98% over the past year, even after rallying 19.84% in the last month off deeply oversold levels. Shares sit well below the 52-week high of $370.86 but comfortably above the $190.12 low.
The June Q2 FY26 print delivered record revenue of $6.62 billion, up 13% YoY, and non-GAAP EPS of $5.96. Yet the stock still fell 6.76% on the day, a pattern of beat-and-sell that has defined the past six quarters.
The narrative overhang is real. CFO Dan Durn departed June 15, 2026, CEO Shantanu Narayen is transitioning to board chair, and management is accepting a short-term ARR trade-off to expand its freemium funnel. That combination compressed the multiple and created the attractive entry.
Why Bulls See a Breakout Ahead The bull case is straightforward: Adobe is monetizing AI faster than the market reflects. AI-first ARR tripled YoY and exceeded $500 million in Q2, Firefly ARR is approaching $300 million, and Acrobat AI Assistant ARR grew roughly 3x YoY. Narayen framed the freemium pivot as building a base that could “pay off for decades”.
Management raised FY26 guidance to $26.50 billion to $26.60 billion in revenue and non-GAAP EPS of $24.35 to $24.45. Adobe also has roughly $27 billion in buyback authorization remaining. Our bull-scenario price is $337.39, a 23% return.
What Could Go Wrong The bear case starts with leadership. Losing a CFO and searching for a CEO simultaneously is a governance risk. The freemium shift explicitly lowers second-half ARR growth from individual subscribers, and GAAP EPS absorbed a $70 million goodwill impairment on the publishing and advertising unit.
On a non-GAAP basis Adobe still grew EPS 18% YoY, and the deferred Creative Cloud price actions are, per management, a deferral rather than a cancellation. If AI-native competitors erode Creative Cloud pricing power, our bear-scenario price is $262.94.
How Adobe Compares to Salesforce and Autodesk Two US-listed peers frame the valuation. Salesforce (NYSE:CRM) is the closest large-cap AI-monetization comparison, with , and a trailing P/E of roughly 23. CRM commands a materially richer multiple despite similar AI-first ARR momentum, making Adobe’s forward multiple of 10 look conservative.
Autodesk (NASDAQ:ADSK) is the creative-software counterweight, growing Q1 FY27 revenue 18.4% YoY to $1.93 billion and guiding FY27 non-GAAP EPS of $12.40 to $12.65. Adobe is roughly twice as profitable per share yet trades at a lower forward multiple. The peer set makes our $307.15 target look reasonable, arguably conservative.
Where the Setup Stands Now My verdict: Buy, target $307.15, 90% confidence. Paying 10x forward earnings for a business with 35.3% operating margins and accelerating AI ARR is the kind of setup I want to own.
I’d add here if Adobe demonstrates freemium-to-paid conversion in the next two earnings reports. I’d step aside if enterprise CX growth decelerates below 20% or if the CEO search drags into fiscal 2027 without clarity.
Year 24/7 Wall St. Price Target 2026 $307 2027 $331 2028 $367 2029 $387 2030 $407 These projections assume Adobe successfully converts freemium users to paid tiers and preserves its non-GAAP operating margin near 45%. Significant upside could come from faster Firefly monetization; downside would emerge from AI competition eroding Creative Cloud pricing power.
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Allworth Financial LP bought a new position in Adobe Inc. (NASDAQ:ADBE – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 9,405 shares of the software company’s stock, valued at approximately $1,928,000.
A number of other large investors have also bought and sold shares of the business. Brighton Jones LLC boosted its position in shares of 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 purchasing an additional 167 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in Adobe by 25.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock valued at $926,000 after acquiring an additional 486 shares in the last quarter. United Bank boosted its position in Adobe by 12.8% during the 2nd quarter. United Bank now owns 3,773 shares of the software company’s stock worth $1,460,000 after acquiring an additional 428 shares during the last quarter. Schnieders Capital Management LLC. grew its stake in shares of Adobe by 7.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after acquiring an additional 190 shares in the last quarter. Finally, Gamco Investors INC. ET AL raised its holdings 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 purchasing an additional 1,813 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors.
More Adobe News Here are the key news stories impacting Adobe this week:
Positive Sentiment: Bank of America raised its Adobe price target, citing the company’s potential to monetize AI and its positioning within a broader software-sector rally. The forecast increase has reinforced bullish sentiment toward ADBE. Bank of America price-target increase Positive Sentiment: Adobe expanded Firefly’s capabilities by making AI-generated music, voiceovers, and sound effects broadly available. The move strengthens Adobe’s creative-AI product portfolio and could support new user adoption, engagement, and revenue opportunities. Adobe Firefly audio tools Positive Sentiment: An Adobe survey reported that 87% of creators say AI is helping them grow their businesses. The findings support demand for Adobe’s AI tools, although survey data is not a direct measure of financial performance. Adobe creator AI report Neutral Sentiment: Several analysts and market commentators describe Adobe’s valuation as attractive after its recovery, with some viewing the rebound as the beginning of a stronger turnaround. However, the stock’s outlook remains dependent on converting AI interest into sustained growth and cash flow. Adobe recovery analysis Negative Sentiment: Adobe has risen roughly 45% from its 2026 low, prompting caution that much of the near-term recovery may already be priced in. One analysis recommends taking some profits despite still-reasonable valuation metrics. Adobe rally and valuation analysis Negative Sentiment: Commentary warning that profitability alone cannot protect companies from intensifying competition highlights a longer-term risk for Adobe, particularly as generative-AI rivals pressure pricing and product differentiation. Profitability and competition analysis Adobe Trading Up 1.1% Shares of ADBE stock opened at $275.30 on Friday. 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 company has a market capitalization of $109.43 billion, a price-to-earnings ratio of 15.75, a PEG 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. The company has a 50-day simple moving average of $232.61 and a two-hundred day simple moving average of $244.99. Adobe (NASDAQ:ADBE – Get Free Report) last released its quarterly earnings data 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 business had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The company’s revenue was up 12.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.06 earnings per share. 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 anticipate that Adobe Inc. will post 19.81 EPS for the current fiscal year.
Insider Activity at Adobe In related news, CAO Jillian Forusz sold 416 shares of the firm’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total value of $109,961.28. Following the sale, the chief accounting officer directly owned 3,824 shares of the company’s stock, valued at $1,010,797.92. This trade represents a 9.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director David A. Ricks acquired 10,000 shares of the firm’s stock in a transaction on Thursday, June 25th. The stock was purchased 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 $3,434,074.05. This represents a 130.63% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.20% of the stock is owned by company insiders.
Analyst Ratings Changes Several brokerages have recently commented on ADBE. Dbs Bank lowered Adobe from a “moderate buy” rating to a “hold” rating in a report on Tuesday, May 19th. HSBC raised Adobe from a “hold” rating to a “buy” rating and raised their price target for the company from $282.00 to $308.00 in a report on Thursday, July 2nd. DA Davidson decreased their price objective on shares of Adobe from $300.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, June 12th. Wolfe Research downgraded Adobe from an “outperform” rating to a “peer perform” rating in a research report on Friday, June 12th. Finally, Royal Bank Of Canada decreased their target price on shares of Adobe from $350.00 to $285.00 and set an “outperform” rating on the stock in a research report on Monday, June 8th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $270.96.
View Our Latest Stock Report on Adobe
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 Systems (ADBE - Free Report) closed the most recent trading day at $275.30, moving +1.13% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.44%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.44%.
Prior to today's trading, shares of the software maker had gained 28.3% outpaced the Computer and Technology sector's gain of 2.49% and the S&P 500's gain of 2.81%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 10, 2026. The company's earnings per share (EPS) are projected to be $6.08, reflecting a 14.5% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.69 billion, showing a 11.75% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $24.31 per share and a revenue of $26.56 billion, signifying shifts of +16.09% and +11.74%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Adobe Systems boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 11.2 right now. This denotes a discount relative to the industry average Forward P/E of 17.38.
Also, we should mention that ADBE has a PEG ratio of 0.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer - Software stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.
