Track market-moving stories before they get noisy

Adobe Systems (ADBE - Free Report) ended the recent trading session at $263.82, demonstrating a -2.49% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.52%. Elsewhere, the Dow saw a downswing of 1.24%, while the tech-heavy Nasdaq depreciated by 0.21%.

Prior to today's trading, shares of the software maker had gained 13.23% outpaced the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.

Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $6.32, marking a 14.91% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.84 billion, indicating a 10.38% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $24.47 per share and a revenue of $26.6 billion, representing changes of +16.86% and +11.92%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Adobe Systems is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 11.06. This indicates a discount in contrast to its industry's Forward P/E of 17.66.

It's also important to note that ADBE currently trades at a PEG ratio of 0.77. 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. ADBE's industry had an average PEG ratio of 1.49 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 55, positioning it in the top 23% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Adobe keeps beating earnings estimates while the stock keeps sliding, and that contradiction has split Wall Street into two very different camps with very different price targets.

The 24/7 Wall St. price target for Adobe (NASDAQ:ADBE | ADBE Price Prediction) is $298.13 over the next 12 months. That means 16.4% upside from the current $256.13. The stock earns a buy rating with high confidence.

Metric Value Current Price $256.13 Price Target from 24/7 Wall St. $298.13 Upside/Downside 16.4% Recommendation BUY Confidence Level 90% Adobe keeps beating estimates while the stock keeps falling, and that gap defines the valuation debate. Shares trade at a forward P/E of 9, which looks cheap for a business that just raised guidance.

Several turnaround catalysts are already on the calendar: a new CEO takes over December 1, Adobe MAX arrives in November, and AI-first ARR is growing more than 150%.

Record Quarters Have Not Stopped the Slide Adobe is down 26.75% year to date and sits well below its 52-week high of $363.70, though it has climbed off the $190.12 low. Momentum has turned recently, with shares up 8.51% over the past week and 3% over the past month.

In fiscal Q3, revenue came in at $6.76 billion, up 12.9% and ahead of the $6.70 billion consensus. Non-GAAP EPS of $6.13 topped the $6.09 estimate, making it the fifth beat in a row.

Jim Cramer summed up the problem in June: the stock traded at “just 8.5 times” earnings as concerns grew that AI will replace software.

Why Bulls See $328 and Beyond Adobe now has more than 1 billion monthly active users, and Firefly ending ARR grew 40% quarter over quarter. The pending Topaz Labs deal adds AI video enhancement.

Buybacks also help, with about $24.55 billion left on the current authorization. Incoming CEO Anil Chakravarthy sees “a massive opportunity for us to be the agentic software leader.” In our bull case, shares reach $328.71.

What Could Keep Adobe Stuck Investors remain wary. Of the analysts covering Adobe, 23 rate it a hold, and the consensus target is $272.31. Analysts on the Q3 call noted that net new ARR fell 36% to 37%. Management’s explanation is that it deliberately sent users into the freemium model and delayed price increases.

The trade-off is reasonable, but it needs to start showing up as revenue. A CFO exit and the CEO transition add execution risk. In our bear case, the stock sits flat at $256.44.

Adobe Trades at Half the Multiple of Microsoft and Salesforce Microsoft (NASDAQ:MSFT) competes with Acrobat and Express through Copilot. Shares trade at 30 times earnings, supported by 43% Azure growth.

Salesforce (NYSE:CRM) competes with Adobe’s Experience Cloud and is growing more slowly, yet it still trades at 27 times earnings.

Company P/E (TTM) Latest Quarterly Revenue Growth Adobe 14 12.9% Microsoft 30 17.75% Salesforce 27 10.83% Even at our target, Adobe would trade at about 11 times forward earnings. Compared with these peers, the 24/7 Wall St. price target looks conservative.

Discount Outweighs Doubt The 24/7 Wall St. price target of $298.13 comes with a buy rating and high confidence.

Valuation is the key factor: double-digit growth at a single-digit forward multiple. The case gets stronger if MAX and the CEO transition show freemium users turning into paying ARR. It weakens if net new ARR keeps contracting into 2027.

Year Price Target from 24/7 Wall St. 2026 $264.13 2027 $298.13 2028 $333.05 2029 $370.90 2030 $388.35 Adobe is expected to keep executing on its current strategy. Faster AI monetization could push the stock higher, while AI tools from competitors could cut into these numbers.

Contact [email protected] for any questions or corrections.

On October 22, 2026, Adobe Inc ADBE shares rose 6.1% to $270.55, showing a positive momentum in a challenging year where the stock has faced a year-to-date decline of 22.7%. The stock has traded within a 52-week range of $190.12 to $363.70.

GF Value™ verdict: ADBE is currently priced at $270.55, which is 49.7% below its GF Value™ estimate of $537.34.GF Score™ of 88/100 indicates a strong overall performance, suggesting that the company has solid fundamentals.Notable signal: Insider activity shows a net selling of $48.8 million over the past 12 months, indicating some caution among insiders.Is ADBE Overvalued or Undervalued?The current price of Adobe Inc ADBE at $270.55 is significantly below the GuruFocus' GF Value™ estimate of $537.34, indicating that the stock is undervalued by approximately 49.7%. This substantial margin of safety suggests a potential opportunity for investors who align their strategies with long-term growth. The GF Value™ is a proprietary assessment that considers historical trading multiples, the company's past business growth, and projections for future performance, providing a comprehensive intrinsic value estimate.

Given the significant undervaluation highlighted by the GF Value™, investors may perceive this as a buying opportunity, although it is crucial to consider the broader market conditions and the company's performance metrics. The GF Valuation label indicates that Adobe is considered significantly undervalued, which could signal a rebound as market sentiments improve.

How Does ADBE's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)15.1x37.1xForward P/E9.8xN/AAdobe's current P/E (TTM) of 15.1x is notably 59% below its 5-year median P/E of 37.1x, indicating that the stock is trading at a discount relative to its historical valuation. This P/E analysis aligns with the GF Value™ verdict of undervaluation, reinforcing the perspective that the stock may be an attractive option based on historical performance metrics.

What Does ADBE's GF Score™ Tell Us?The GF Score™ evaluates a company's overall performance based on various factors, including financial strength, profitability, growth, valuation, and momentum. With a GF Score™ of 88/100, ADBE demonstrates strong fundamentals, particularly in profitability and growth, where it scores 10/10 in both categories. However, its valuation rank is lower at 2/10, suggesting that the stock is trading at a discount relative to its intrinsic value.

MetricRatingGF Score™88Financial Strength8/10Profitability10/10Growth10/10Valuation2/10Momentum5/10The strong scores in profitability and growth suggest that Adobe is operating efficiently and expanding its business, while the lower valuation rank indicates that the market has not yet recognized this potential. Together, these scores reflect a solid company with robust fundamentals but highlight the opportunity for revaluation as market conditions evolve.

What Are Gurus and Insiders Doing with ADBE?Currently, 19 gurus hold shares of Adobe Inc, with 11 increasing their positions and 8 reducing their holdings in recent quarters. This activity suggests a mixed sentiment among professional investors, with a majority expressing confidence in the stock's future.

In terms of insider activity, over the past 12 months, insiders have bought $1.9 million worth of shares while selling $50.8 million, leading to a net selling of $48.8 million. This pattern of net selling may indicate some level of caution among insiders regarding the company's near-term prospects, which investors should consider when assessing their own positions.

What This Means for InvestorsBased on the GF Value™ analysis, Adobe Inc ADBE appears to be significantly undervalued at its current price of $270.55. With strong fundamentals indicated by the GF Score™ and a favorable historical P/E comparison, the stock presents an intriguing opportunity for those looking to invest in a company with robust growth potential, although caution is warranted due to insider selling activity. For more detailed information on Adobe, visit the Adobe Inc (ADBE) stock page.

Frequently Asked QuestionsWhat is ADBE's GF Score™?

Adobe has a GF Score™ of 88/100, indicating strong overall performance based on its financial health and growth potential.

Is ADBE overvalued or undervalued?

According to the GF Value™, ADBE is currently undervalued, with a significant margin of 49.7% below its fair value estimate.

What is ADBE's P/E ratio?

ADBE's P/E (TTM) ratio is 15.1x, which is substantially lower than its 5-year median P/E of 37.1x, indicating that the stock is trading at a discount relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Adobe trades at multi-year lows despite multiple guidance increases and solid fundamentals, presenting a compelling value opportunity. ADBE offers double-digit revenue and earnings growth, yet is valued at just 8.7x FY27 P/E, akin to a declining industrial. Competitive threats and executive turnover are real, but risks appear fully priced in, with minimal disruption expected.

SAN JOSE, Calif. & ENSTONE, England--(BUSINESS WIRE)--Adobe (Nasdaq: ADBE) — the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms — and BWT Alpine Formula One Team have announced a global premium partnership to reshape fan experiences through AI, with Adobe becoming the Official AI Fan Experience Partner for the team.Formula One is one of the world's most dynamic sporting platforms, demanding speed, precision and con.

Adobe Systems (ADBE - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this software maker have returned -1% over the past month versus the Zacks S&P 500 composite's +0.7% change. The Zacks Computer - Software industry, to which Adobe belongs, has gained 6.3% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Adobe is expected to post earnings of $6.32 per share, indicating a change of +14.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $24.47 points to a change of +16.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $27.7 indicates a change of +13.2% from what Adobe is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Adobe is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Adobe, the consensus sales estimate of $6.84 billion for the current quarter points to a year-over-year change of +10.4%. The $26.6 billion and $29.06 billion estimates for the current and next fiscal years indicate changes of +11.9% and +9.2%, respectively.

Last Reported Results and Surprise HistoryAdobe reported revenues of $6.76 billion in the last reported quarter, representing a year-over-year change of +12.9%. EPS of $6.13 for the same period compares with $5.31 a year ago.

Compared to the Zacks Consensus Estimate of $6.69 billion, the reported revenues represent a surprise of +1.02%. The EPS surprise was +0.82%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Adobe is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Adobe. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Adobe Systems (ADBE - Free Report) ended the recent trading session at $245.48, demonstrating a -2.46% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 2.15%.

Prior to today's trading, shares of the software maker had lost 0.4% lagged the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.

The investment community will be closely monitoring the performance of Adobe Systems in its forthcoming earnings report. The company is expected to report EPS of $6.32, up 14.91% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.84 billion, indicating a 10.38% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $24.47 per share and revenue of $26.6 billion, which would represent changes of +16.86% and +11.92%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 10.29. Its industry sports an average Forward P/E of 16.78, so one might conclude that Adobe Systems is trading at a discount comparatively.

One should further note that ADBE currently holds a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADBE's industry had an average PEG ratio of 1.38 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

SAN JOSE, Calif.--(BUSINESS WIRE)--First parenthetical note in the "Pre-season shopping in October continues to accelerate" section of release dated Sept. 28, 2026 should read "which became an annual tradition in 2022" (instead of "which began in 2021"). The updated release reads: ADOBE: U.S. HOLIDAY SHOPPING SEASON TO HIT RECORD $275.1 BILLION ONLINE, RISING 6.7% YOY Cyber Monday set to remain the biggest online shopping day of the season—with consumers spending over $15 billion in a single da.

SAN JOSE, Calif.--(BUSINESS WIRE)--Adobe (Nasdaq: ADBE), the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms, and NVIDIA today announced an expansion of their partnership to optimize Adobe’s flagship tools including Adobe Photoshop, Premiere, Substance 3D, Frame.io and Brand Concierge, delivering faster AI-powered creation, production and personalization.

This work builds on Adobe and NVIDIA’s strategic partnership announced in March, which brings together Adobe’s creative and marketing workflows, models and technology with NVIDIA’s open models, libraries, research and accelerated computing to accelerate creative, production and marketing workflows across video, images, 3D and other creative media. That collaboration includes GPU acceleration for media ingestion and intelligence in Frame.io, as well as ongoing work around Adobe Substance 3D, Adobe Firefly Foundry and 3D digital twin workflows for enterprise customers.

“Creative workflows are more multimodal than ever, with many projects spanning images, video, audio, motion and 3D, making performance critical to helping creatives stay focused on their ideas and craft,” said Deepa Subramaniam, vice president, product marketing, creative professionals, Adobe. “By partnering with NVIDIA to optimize Photoshop, Premiere and Substance 3D for RTX Spark and accelerating Frame.io in the cloud, we’re delivering the performance creatives need to bring their ideas to life.”

“AI agents are helping creators unlock deeper and richer workflows using the Adobe applications they know and love,” said Jason Paul, vice president, local AI, NVIDIA. “Powered by RTX Spark, Adobe’s optimized tools deliver up to 2x faster performance to accelerate these new workflows.”

Empowering Creatives With Faster Adobe Tools Rearchitected With NVIDIA

Creative professionals today move between image, video, motion and 3D, sometimes all within the same project. As AI increasingly becomes part of the creative process, they need technology that keeps pace with the speed of their ideas and the complexity of their workflows. As an industry leader in creativity, Adobe's tools apply decades of creative expertise to amplify human potential and make it easier to quickly turn ideas into impactful work.

Adobe is bringing the power of the NVIDIA RTX Spark superchip, which NVIDIA launched earlier this month, to its agentic creative applications Photoshop, Premiere and Substance 3D. RTX-accelerated and optimized to take full advantage of RTX Spark’s unified memory and AI compute, these applications deliver up to 2x faster AI processing, editing, color and effects, helping creatives iterate faster and stay in their creative flow.

Adobe rearchitected Photoshop around GPU-accelerated compositing to be faster and more responsive for creative tasks from removing distractions with the Remove Tool to applying effects like Gaussian Blur and Light Leaks directly on canvas.

Some of the most demanding post-production workflows in Premiere, from playback and rendering, to effects, color and AI-powered tools, are RTX-accelerated and optimized for RTX Spark. This results in real, tangible speed gains for popular audio and video features in Premiere like Enhance Speech and Object Mask. For 3D artists using Substance 3D Painter, RTX Spark speeds up the heaviest steps around texturing.

Accelerating Cloud Video Workflows With Frame.io and NVIDIA

Adobe is also using NVIDIA accelerated computing to speed cloud media processing and intelligent content discovery for Adobe Frame.io, helping production teams find and use growing media libraries faster. The updated Frame.io pipeline uses NVIDIA video acceleration, including NVIDIA NVDEC for hardware-accelerated decoding and NVIDIA TensorRT ™ with CUDA™ for content preprocessing and embedding generation.

Moving compute-intensive video decoding, preprocessing and embedding generation onto NVIDIA GPUs lets Frame.io process media faster and make it searchable sooner, while supporting more responsive discovery across large content libraries.

Early performance results from selected Frame.io transcode and search workloads show:

Approximately 5x faster embedding generation 4-5x improvement in P95 processing latency An approximately 80% smaller search proxy For creative teams, these gains mean uploaded content becomes searchable sooner, larger libraries refresh more efficiently, and discovery and review stay frictionless as media volumes grow.

Personalized Conversational Experiences With Adobe Brand Concierge Optimized On NVIDIA Nemotron

Brands also want more choice and value from the AI models powering personalized experiences. Open models can help meet that need, providing a flexible and efficient way to deliver high-quality, responsive conversations at enterprise scale.

Adobe and NVIDIA worked together to optimize Brand Concierge using NVIDIA Nemotron™ open models. This version will be available to enterprise customers later this year. NVIDIA has also selected Brand Concierge to drive personalized conversational experiences grounded in organizational data and content. This enables NVIDIA to tailor interactions on their website based on customer needs, while leveraging Nemotron to deliver fast, high-quality responses at scale.

Sparking Creativity, to the MAX

Get ready for what’s next — with three days of creative skill-building, visionary keynotes and valuable connections at Adobe MAX, running Nov. 10-12. Adobe and NVIDIA will showcase the latest advancements for creators alongside their hardware partners.

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.

About NVIDIA

NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.

NVIDIA Forward-Looking Statements

Certain statements in this press release including, but not limited to, statements as to: expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments, and related trends and drivers; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on NVIDIA’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, and other NVIDIA product and service names are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries and regions. Other company, product, and service names may be trademarks of the respective companies with which they are associated.

© 2026 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe in the United States and/or other countries. All other trademarks are the property of their respective owners.

More News From Adobe

Adobe Inc. (NASDAQ:ADBE) is among 15 domains consistently appearing across major AI platforms, according to Semrush’s 2026 AI Visibility Index.

For investors, the finding raises a timely question: as AI assistants reshape how people discover information, can visibility in AI-generated answers become a meaningful commercial advantage?

Released Oct. 13, the report analyzed data from January through July across OpenAI ChatGPT, Google Gemini, Google AI Mode and Google AI Overviews. Adobe appeared in the Universal Core, a group of domains featured in the top 100 mention lists across all four platforms in both the U.S. and U.K. throughout the seven months.

• Adobe stock is trading near recent lows. Where is ADBE stock headed?

Mentions vs. CitationsThe distinction between mentions and citations is important. A company can appear in an AI-generated answer without its website being cited as a source. Citations offer a more direct route to referral traffic, although they do not guarantee a purchase or subscription.

For Adobe, whose business spans creative software and digital marketing tools, the broader opportunity lies in how brands manage their visibility as consumers increasingly turn to AI for information and recommendations.

But the Semrush findings do not establish that Adobe’s visibility is generating incremental revenue or improving its competitive position. Investors should watch whether AI-driven discovery translates into measurable customer engagement, demand for Adobe’s marketing products and sustained growth.

For now, the report offers a signal of visibility — not proof of financial upside.

Photo: Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Adobe's stock has cratered 32% this year even as its AI revenue grows triple digits, leaving investors caught between a compelling valuation and a nagging question about whether the real threat to Creative Cloud has barely started.

Adobe (NASDAQ:ADBE | ADBE Price Prediction) trades at $238.14. The market is pricing in a generative AI disruption that the company’s own results keep failing to show.

Adobe owns the professional creative stack (Photoshop, Illustrator, Premiere) along with Acrobat and a large enterprise marketing business. Shares are down 31.96% year to date, even though the company just posted its fifth consecutive EPS beat. The pressure got worse after Barron’s reported a downgrade to Sell, citing growth concerns and “meaningful cracks now starting to show.”

AI Revenue Is Surging While the Multiple Collapses Bulls point to the AI numbers. AI-first ending ARR now tops $650 million and is growing more than 150% year over year. Firefly ARR grew 40% quarter over quarter, and creative freemium users passed 100 million. Management also said AI credit consumption is accelerating inside the core desktop apps. Creators are using generative AI through Adobe’s tools.

The stock trades at a forward P/E of 9 with a PEG of 0.582, which is a deep-value multiple for a business that just raised full-year non-GAAP EPS guidance to $24.45 to $24.50. Adobe also bought back about 9.5 million shares for $2.232 billion in a single quarter.

Slowing down ARR and Thinner Margins Feed the Sell Calls Bears focus on what lies behind the beats. In the latest quarter, net income rose only 3.1% on revenue growth of 12.89%. Full-year ending ARR growth is targeted at just 10.2%. On the call, analysts pressed management about lower net new ARR and seat-volume weakness. Management had also put off price increases, choosing to push users into the freemium model first.

Canva, Midjourney and OpenAI keep competing for lighter creative work. Retail sentiment is negative too: a Reddit post called “ADOBE is cooked.” drew 1,509 upvotes.

A CEO Handoff Leaves the Story Half Written Shantanu Narayen is leaving after 18 years as CEO, and Anil Chakravarthy is taking over. The freemium strategy has not yet shown that it converts users into paying customers at scale. Upcoming markers include Q4 revenue against guidance of $6.8 to $6.85 billion, the first ARR outlook under the new CEO, and evidence that freemium users are turning into ARR.

Wall Street Sees Upside but Mostly Rates It Hold At $238.14, Adobe lies 15.5% below the consensus target of $275.06 from 39 analysts. Price targets are one data point and come with no guarantee. The ratings break down this way:

Strong Buy: 4 Buy: 7 Hold: 23 Sell: 4 Strong Sell: 1 Over the past year, Adobe fell 29.44% while the S&P 500 gained 19.15%. The trailing P/E is 14.

Adobe’s Results Keep Defying the Cannibalization Thesis At $238.14, the data points to a business the market may be mispricing.

Part of the threat is real. Net new ARR is slowing down, and low-end tools are winning casual users. The bigger claim, that AI will replace Creative Cloud, is still unproven. Creative and marketing subscription revenue grew 13% year over year, and AI usage is rising inside Adobe’s main apps.

The likely path higher runs through a seasonally strong enterprise Q4, product launches at Adobe MAX, and the Topaz Labs deal. At a single-digit forward multiple, much of the bad news already looks priced in. This outlook falls apart if AI-first ARR stalls or creative subscription growth slips toward single digits.

Adobe is being valued like a business AI is replacing, even as its AI revenue grows faster than almost anything else it sells.

Contact [email protected] for any questions or corrections.

Both Adobe and Salesforce beat earnings and both call AI a growth engine, yet one stock has shed nearly a third of its value this year while the other holds up. The reason comes down to where AI feeds on…

Adobe (NASDAQ:ADBE | ADBE Price Prediction) and Salesforce (NYSE:CRM) both beat earnings estimates in their latest reports. Still, fear of AI cannibalization is hitting them in very different ways. Adobe sells creative tools that generative models can copy. Salesforce sells the customer database that AI agents have to read from. Both leadership teams presented AI as a growth engine, and investors bought one pitch far more than the other.

Agents Feed Salesforce as Freemium Drains Adobe’s ARR Salesforce’s Agentforce ARR passed $1.5 billion, up over 240% year over year. That is real revenue, well past the pilot stage. On the call, Marc Benioff pushed back on the doom thesis: “AI isn’t replacing Salesforce. It’s unlocking more value across all four layers of our platform.” Customers back him up. Xero rolled out an AI service agent to 100% of its customers and reached a 62% deflection rate, so most questions never needed a human. Replit, meanwhile, builds its own interfaces on top of Salesforce data. That carries risk for Salesforce, because fewer logins make seat-based pricing harder to defend.

Adobe’s AI-first ARR exceeded $650 million, growing more than 150%. The growth is fast but the base is small next to $27.5 billion in total ARR. Creative freemium users passed 100 million after Adobe held off on price increases to chase adoption. The cost showed up quickly. An analyst on the call noted that net new ARR fell 36, 37% year over year.

Business Driver Adobe Salesforce AI Engine Firefly credits, Acrobat AI Assistant Agentforce, Data 360 Backlog Signal RPO up 8% Current RPO up 14% Cannibalization Risk Users create content elsewhere Users work through Claude or ChatGPT Salesforce Guards Its Data While Adobe Opens the Front Door Salesforce wants every AI interface to run through its platform. ClaudeForce pairs Anthropic’s Claude with Salesforce data, and customers have to move up to premium editions that cost 60% to 80% more. So far only 5% of sales and service knowledge workers have upgraded. That leaves a long room for upselling, if the pitch works.

Adobe is pushing Acrobat into ChatGPT, Chrome, Microsoft Edge and WhatsApp, giving up some control in exchange for reach. Interim CFO Steve Day said slower RPO growth reflects the freemium push. Leadership is changing as well: Anil Chakravarthy becomes CEO on December 1, 2026.

Adobe shares are down 31.96% year to date, compared with an 11.14% drop for Salesforce. Barron’s also reported Monday that Adobe was downgraded to Sell on growth concerns.

Adobe MAX and Premium Upgrades Will Show Who Recovers My focus will be whether Adobe MAX in November lays out a credible plan to turn freemium users into paying ones. You should watch whether Salesforce holds the roughly 14% current RPO growth it guided for Q3. That would suggest agents are adding to its base.

Why Salesforce Holds the Edge in This Fight Adobe is taking the harder hit. Its main products sit exactly where generative models compete, and its own numbers show bookings slowing while it pays to drive adoption. Salesforce faces a quieter threat: users may skip its screens, but its data remains the source of truth that agents rely on.

Salesforce holds the clearer position because its AI revenue is easier to see. I do discount its $5.90 EPS figure, which included $2.53 per share from investment gains. Adobe’s recovery case depends on a longer turnaround. My view could shift if MAX shows freemium users converting and net new ARR picking back up.

Contact [email protected] for any questions or corrections.

Wells Fargo double-downgraded Adobe as competitive pressure rises and its latest quarter raised fresh questions about growth.

Summary

Adobe fell 2.6% in premarket trading.

Creative-software company Adobe Inc. (ADBE, Financials) was under more pressure after Wells Fargo double-downgraded the stock to Underweight from Overweight.

The business also lowered its target price to $225 from $270. It's not simply the value that's a worry.

Adobe's third quarter results revealed early symptoms of deterioration and the business faces a challenging fourth quarter ramp, said Wells Fargo analyst Michael Turrin.

He also cited rising competition pressure in Adobe's core creative sector, and claimed CIO survey data shows the firm losing budget share in the current AI review cycle.

That's the thing investors will worry about most.

Adobe has enjoyed a great creative-software environment for years, but generative AI is making it simpler for users to try alternatives. If it starts to erode pricing power or impede new business, the impact might be seen for much more than one quarter.

The change in management brings another degree of uncertainty with the CEO and CFO positions being in focus.

Wells Fargo also views danger to its fiscal 2027 forecasts, especially without a significant price hike to underpin growth.

The next test will be if Adobe can convince that AI is growing its platform rather than eroding the moat surrounding its core creative products consistently.

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.

Click for the complete disclosure

Wells Fargo just pushed Adobe to its lowest rating tier while the rest of enterprise software rallies, raising a pointed question about whether the creative giant's subscription base is about to crack under pressure from rival AI tools.

Enterprise software names are rallying, and Adobe (NASDAQ:ADBE | ADBE Price Prediction) is the notable exception after a fresh Wall Street downgrade. Adobe stock is down 4% to $233.50 this morning. That leaves Adobe shares down 31% year to date, a deep hole compared with the gains elsewhere in the group.

Two benchmark funds show how unusual that stillness is. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is up 0.6%. Meanwhile, the Invesco QQQ Trust (NASDAQ:QQQ) is down 0.2%, leaving software higher, large-cap technology lower and Adobe stock flat against both.

Notably, ServiceNow (NYSE:NOW) stock is at $144.39, up 3%. Additionally, Intuit (NASDAQ:INTU) stock is at $306.37, up 1%. Among these three subscription names, only Adobe stock is falling.

Wells Fargo Drops Adobe to Underweight Wells Fargo downgraded Adobe to Underweight from Equal Weight and cut its price target on Adobe stock to $225. The move to the lowest rating tier lands on a company already carrying questions about how fast its subscription revenue is growing. Rival AI tools raise a second concern, since software built by competitors could erode demand for creative products over time.

Separately, the Department of Labor last week suspended Adobe from its Permanent Labor Certification program, a move tied to multiple active federal investigations. That episode precedes the downgrade.

Solid Quarter Collides With Renewal Worries Recent results gave the bull side real material. In its Q3 FY2026 report, Adobe posted adjusted EPS of $6.13 against a $6.09 estimate, and its revenue climbed 12.9% year over year to $6.76 billion.

Within that total, subscription sales rose 14% to $6.58 billion, while AI-first annual recurring revenue grew more than 150% year over year. Management also raised its full-year outlook, and Adobe reached 1 billion monthly active users.

For comparison, ServiceNow lifted its Q2 FY2026 revenue 24% year over year, and Intuit posted 13.7% growth in its Q4 FY2026 sales. Adobe stock trades at a steep discount. At a forward P/E ratio of 9x, it sits far below the 28x multiple on ServiceNow stock, showing how much growth skepticism is already priced in. Lower expectations can cut both ways, protecting Adobe shares if renewals hold and offering little support if they slip.

What to Watch Next Adobe stock bulls can lean on enterprise customers being slow to pull established creative and document workflows out of their operations, which makes the subscription base harder to shift than a free alternative suggests. A leadership transition adds a second uncertain variable, with an incoming chief executive set to take the helm. Shareholders can watch for whether renewal trends hold firm as rival AI tools spread.

The bear case is clear. A downgrade to the bottom tier, paired with a target below where Adobe stock trades, implies erosion that could surface in renewals before it reaches headlines. Adobe’s Q4 FY2026 revenue outlook of $6.8 billion to $6.85 billion marks the next checkpoint for that subscription question. Investors should keep their position sizes measured until the buying across software spreads to Adobe stock.

Contact [email protected] for any questions or corrections.

Adobe keeps beating earnings estimates and raising guidance, yet the stock has cratered 30% this year while peers held up far better. One Bernstein analyst sees a massive mispricing that the rest of Wall Street is not ready to believe.

Adobe (NASDAQ:ADBE | ADBE Price Prediction) is now trading at $242.27, and Wall Street’s average price target is $275.06. Roughly 13.5% of implied upside to consensus remains.

Adobe sells the professional creative toolkit (Photoshop, Illustrator, Premiere), plus Acrobat and an enterprise marketing suite. It keeps beating estimates and raising guidance, and the stock keeps falling anyway. Bernstein’s Mark Moerdler reads that as a mispricing. His Street-high $373 target means about 54% upside, well above the 40% line that usually marks a serious disconnect.

The whole debate sits between a modest consensus and that aggressive bull target. One possibility is that Adobe is making money from AI faster than the market gives it credit for. The other is that its moat is wearing away faster than the reported numbers show.

Record Quarters Failed to Stop a 30% Slide The main driver is fear that generative AI tools will erode Adobe’s creative moat. That fear has pushed the stock down 30.78% year to date from a starting price of $349.99. A record Q3 didn’t stop it. Revenue of $6.76 billion rose 12.9% and beat the $6.70 billion consensus. Non-GAAP EPS of $6.13 beat the $6.09 estimate, the fifth straight beat. Even so, shares fell 4.94% over the past month.

Bears focus on the forward-looking numbers. Total ARR grew 11.2%, and full-year guidance calls for 10.2% ARR growth. Both trail the 14% gain in subscription revenue. RPO rose just 8%. There’s also a leadership change. After 18 years, Shantanu Narayen hands the CEO role to Anil Chakravarthy effective December 1. Retail investors have turned bearish, and one popular WallStreetBets post declared “ADOBE is cooked.”

Bernstein’s $373 Case Hinges on Enterprise AI Dollars Most of the Street isn’t convinced. Here’s how the 39 analysts rate the stock:

Strong Buy: 4 Buy: 7 Hold: 23 Sell: 4 Strong Sell: 1 In September, Moerdler cut his target from $379 to $373 and kept his Outperform rating. His thesis is built around three drivers. The first is enterprise monetization. With Firefly built into Photoshop, Illustrator, Premiere and GenStudio, he expects growth from more enterprise seats, higher pricing levels and paid AI credits. So far, AI-first ARR is above $650 million and growing more than 150%. Firefly ARR grew 40% quarter over quarter, and GenStudio ARR is up over 20%.

The second pillar is a “safe AI” moat. Firefly is trained on Adobe Stock and licensed content, so Adobe can protect customers against copyright claims (IP indemnification), which Fortune 500 legal teams require before using AI at scale. The third pillar is cash. Q3 free cash flow was $2.44 billion, Adobe bought back about 9.5 million shares for $2.232 billion, and roughly $24.55 billion remains under its buyback authorization.

Earnings estimates are moving the bulls’ way. Over the past 30 days, analysts made 26 upward revisions to fiscal 2026 EPS against 3 cuts. The fiscal 2027 consensus is $27.6733. Still, reaching $373 requires the stock’s valuation multiple to expand, and a Street dominated by Hold ratings doesn’t expect that yet.

Software Sold Off Together, but Adobe Fell Hardest The whole peer group fell, but Adobe fell furthest.

Salesforce (NYSE:CRM) is down 13.51% this year. With shares at $229.13 and a $283.36 target, it offers about 23.7% upside. Ratings lean much more bullish, with 6 Strong Buy ratings, 32 Buy, 15 Hold and 2 Strong Sell.

Autodesk (NASDAQ:ADSK) is down 20.49% year to date but has rebounded 10.81% over the past month. With shares at $235.35 and a $307.54 target, it means about 30.7% upside. It carries 7 Strong Buy ratings, 23 Buy and 6 Hold, with no Sells.

Autodesk has the largest consensus upside in the group. Adobe has the lowest despite the steepest drop, and only Bernstein’s outlier target puts it on top. Every one of these targets is an estimate.

A 9x Forward Multiple Meets a Hold-Heavy Street Adobe trades at $242.27, against a $275.06 average target from 39 analysts, for 13.5% implied upside. Shares are down 30.78% year to date and 30.28% over the past year. Over the same periods, the S&P 500 gained 14.17% and 16%.

Over the past 52 weeks, the stock has ranged from $190.12 to $363.70. It trades at about 14 times trailing earnings and 9 times forward earnings. Analyst targets are one input among many.

Adobe’s 9x Multiple Sets Up a Decisive AI Test Bulls get more support if AI-first ARR keeps compounding, enterprises turn Firefly credit use into more paid seats, and total ARR growth climbs back above the 10.2% guidance. That’s the path to $373: proof that AI is growing Adobe’s business.

The bear case gains ground if ARR keeps slowing down, AI-native rivals like Canva and OpenAI’s image and video tools keep winning new creators, and the CEO transition stalls execution. Under those conditions, 9x earnings could prove a value trap.

Valuation leans toward the bulls. A forward multiple of 9 prices in a long decline even as estimates rise. Chakravarthy’s first quarter-end earnings report as CEO will be the real test.

Contact [email protected] for any questions or corrections.

Temenos Group (OTCMKTS:TMSNY – Get Free Report) and Adobe (NASDAQ:ADBE – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Volatility & Risk Temenos Group has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Adobe has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Analyst Ratings This is a breakdown of recent ratings and recommmendations for Temenos Group and Adobe, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Temenos Group 0 2 0 2 3.00 Adobe 6 19 11 0 2.14 Adobe has a consensus price target of $286.68, suggesting a potential upside of 18.33%. Given Adobe’s higher probable upside, analysts plainly believe Adobe is more favorable than Temenos Group. Profitability This table compares Temenos Group and Adobe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Temenos Group 17.50% 55.57% 10.62% Adobe 28.05% 65.65% 25.54% Valuation and Earnings This table compares Temenos Group and Adobe”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Temenos Group $1.09 billion 5.23 $280.61 million $2.83 29.41 Adobe $23.77 billion 3.97 $7.13 billion $17.92 13.52 Adobe has higher revenue and earnings than Temenos Group. Adobe is trading at a lower price-to-earnings ratio than Temenos Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership 81.8% of Adobe shares are owned by institutional investors. 0.2% of Adobe shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary Adobe beats Temenos Group on 11 of the 15 factors compared between the two stocks.

About Temenos Group (Get Free Report)

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.

About Adobe (Get Free Report)

Adobe Inc., together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, students, workers, marketers, educators, enthusiasts, and communicators. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Advertising Cloud offerings. It also provides consulting, technical support, and learning services. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at adobe.com. It also distributes products and services through distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and original equipment manufacturers. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

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JD Vance froze Microsoft and several tech giants from a key immigration program, citing a pattern of bad-faith hiring that he says replaced American workers with foreign ones. Then, hours later, President Trump handed Microsoft's CEO a medal at the…

The Associated Press reported the announcement. Vice President JD Vance announced on Thursday, October 8, 2026 that the administration is freezing Microsoft (NASDAQ:MSFT | MSFT Price Prediction) and several other firms from a Labor Department program used to sponsor foreign workers for permanent residency. He spoke at a news conference of the administration’s Fraud Task Force at the Eisenhower Executive Office Building. Labor Secretary Keith Sonderling, White House deputy chief of staff Stephen Miller and Attorney General Todd Blanche also attended.

AP News reported that besides Microsoft, Vance named Adobe (NASDAQ:ADBE) and six tech consulting firms: Cognizant (NASDAQ:CTSH), Infosys (NYSE:INFY), Tata, Wipro, HCL and Capgemini.

How the Green Card Program Works and What Vance Alleges Before a company can apply to the Labor Department to sponsor a foreign worker for a green card, the program requires it to advertise the job in the United States. The point is to show that no American workers are available. This is the first step toward an employer-sponsored green card. It is separate from H-1B visas, which are temporary, and the suspension applies only to the green card sponsorship program.

JD Vance described how he says the advertising step is abused: “They’ll put an advertisement in a small-town newspaper. They’ll go out there and say that ‘We have advertised for a position with our company, and nobody is responding to it.’ And they will use that lack of response to then go and replace American workers with what is effectively foreign indentured servants.”

The fraud claim rests on that mechanism. Vance focused his objection on the hiring process. His claim is that the search for American applicants was run in bad faith, and he explained his phrase by saying these workers must leave the country if they lose their jobs, and they earn less than Americans in the same position.

Vance’s Numbers Compared With Government Data AP News reported that Vance said Microsoft laid off 6,000 American workers in the year he cited, while obtaining 6,300 H-1B visas and almost 3,000 green cards. JD Vance addressed the layoffs. He said that for every worker laid off, Microsoft brought in “one and a half foreign indentured servants.” He added that “there has been no company in the United States, unfortunately, that has used this system more than Microsoft.”

AP News checked that claim. Citing US Citizenship and Immigration Services data, AP News reported that Microsoft ranks No. 5 among US employers in H-1B usage and Amazon (NASDAQ:AMZN) ranks No. 1. That ranking measures H-1B usage, while Vance was talking about the green card sponsorship program, and the two do not line up exactly, so the ranking tests his claim without ruling it out.

Microsoft’s Response Microsoft said that 80% of the approximately 6,000 H-1B applications it filed in its most recent fiscal year were to extend or change the status of existing employees. Microsoft said the rest went to people already legally in the United States, equal to 1% of its US workforce. “They are not new arrivals to our country,” the company said. Microsoft added that it “only files H-1B petitions for those who meet the rigorous standards of this visa category.”

The two sides are counting different things. A visa renewal for an engineer who has worked at Microsoft for years shows up in the same statistic as a new hire from abroad.

Criticism From Both Sides Doug Rand, a former senior adviser at US Citizenship and Immigration Services, called the announcement “incoherent.” His reasoning: “Once you have a green card, you’re no longer dependent on your employer for your immigration status.”

Ron Hira, a Howard University professor, called the move “very significant.” He pointed to an executive order issued in September 2026 that tells agencies to protect American workers from abuse of the program. On worker protections, he said: “That’s never been enforced.”

Universities and Visa Fees Are Also Targets AP News reported that Vance named nine universities he said deserved investigation for J-1 visa fraud: Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT. Several have received subpoenas. Others said they would comply or review documents.

On October 7, 2026, the Department of Homeland Security proposed a $70,000 fee for international students seeking to work in the US, AP News reported. AP News reported that an earlier attempt to raise the H-1B fee to $100,000 was struck down by a federal judge in June. Per AP News, a proposed $103,265 replacement fee is not yet final and is expected to face a legal challenge.

Same-Day White House Medal for Microsoft’s CEO AP News reported that hours after the announcement, President Donald Trump awarded Microsoft CEO Satya Nadella the National Medal of Technology and Innovation at a White House event honoring several technology executives.

What Is Still Unknown? None of the coverage we reviewed identified the legal authority behind the suspension or said how long it will last. AP reported that the other companies did not immediately answering to its messages. It is also unclear whether any company will challenge the suspension in court.

Contact [email protected] for any questions or corrections.

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The move has renewed debate over whether stricter skilled-immigration policies protect American workers or hurt American businesses. Alex Wroblewski / AFP via Getty Images For foreign workers at some of the biggest employers in tech, there's another twist in an already uncertain system.

The Trump administration’s decision to suspend Microsoft, Adobe, and other named tech companies from the Permanent Labor Certification, or PERM, program has renewed debate over whether stricter skilled-immigration policies protect American workers or hurt American businesses.

On Thursday morning, Vice President JD Vance announced the suspension at a press conference. He singled out Microsoft, saying: "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants."

PERM is not itself a visa. It is the Labor Department certification employers generally need before sponsoring a worker for an employment-based green card. Vance said that some companies had abused the system and used foreign workers to undercut Americans.

In a statement on Thursday, Microsoft disputed Vance's accusations, saying most of its H-1B filings were for existing employees rather than new hires.

"Of the approximately 6,000 H-1B visa applications we submitted in the last fiscal year, 80% percent were to extend or change the status of existing Microsoft employees. These were not to hire new people," the company wrote.

Besides Microsoft and Adobe, the action also affected six major IT services companies with deep ties to India’s tech sector: Tata Consultancy Services, Infosys, Wipro, HCLTech, Cognizant, and Capgemini.

Here’s what immigration-policy experts and Indian tech voices are saying:

Ron Hira, Howard University political science professor Hira, a Howard University political science professor and a longtime critic of the H-1B program, called the move against Microsoft “very significant.”

Hira has long argued that employers can use the program in ways that depress pay and disadvantage US workers. He told the Associated Press on Thursday that there are supposed to be protections requiring employers to show that hiring an H-1B worker does not hurt similarly employed Americans.

“That’s never been enforced,” Hira said.

Doug Rand, former senior advisor at US Citizenship and Immigration Services Rand, a former senior advisor at US Citizenship and Immigration Services during the Biden administration, took the opposite view. He called Vance’s announcement “incoherent” in a statement to AP.

Rand’s argument is that the policy could worsen the problem Vance says he wants to solve. H-1B workers are generally tied to their employers for their immigration status. A green card gives workers far more freedom to switch jobs and bargain over pay.

“If the Trump administration were truly concerned that H-1B workers are ‘indentured servants,’ then the last thing they would do is block companies from helping their own H-1B workers get green cards,” Rand told AP.

Dinesh Pai, Indian tech founder Pai, an India-based vice president of investments at the country's largest brokerage Zerodha, reacted to what a more restrictive US path to permanent residency could mean for India.

In a statement on X, Pai wrote that the immediate downside could be fewer high-earning Indians in the US, which in turn could mean lower remittances, less soft power, and less angel investments flowing back into Indian startups. He also noted that India receives roughly $125 billion in annual remittances, with the US accounting for about a quarter of that total.

But he also saw a potential upside. If US companies cannot bring talent to America, he wrote, “they probably will bring the work to India.”

US visa uncertainty may also keep more top engineers in India to build domestic companies and AI startups, he added.

Nasscom, India’s IT-industry trade group Nasscom, India's main tech industry group, said immigration policy and skilled-talent mobility should be treated as separate issues.

"While the decision affects a specific immigration pathway, Nasscom has consistently maintained that immigration and skilled talent mobility are two distinct issues and should not be viewed through the same lens," the group said in a statement to local media

It also said the number of employees moving from H-1B status to permanent residency through PERM is “relatively limited.”

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Shubhangi Goel You're currently following this author! Click to unsubscribe from email alerts.

Shuby is a senior reporter at Business Insider's Singapore bureau, where she writes about tech, with a focus on AI training and vibe-coding startups.She previously interned for Bloomberg News and CNBC. She studied communications and business at the National University of Singapore. In 2026, she won the Singapore Press Club Tech Journalism Award for her work on the hidden human cost of Meta's chatbot training program and an exposé on the black market for AI gig-work accounts.Have a tip? Contact her via email at [email protected] or on secure messaging app Signal at @shuby.85. We can keep sources anonymous.

Microsoft Immigration

The U.S. Department of Labor announced it would suspend Microsoft and Adobe from its Permanent Labor Certification program on Thursday, Labor Secretary Keith Sonderling said, as the Trump administration continues to take aim at immigration and foreign hiring programs ahead of November's midterm elections.

Sonderling said the Labor Department won't accept or process any new applications under the program for a host of companies, including Cognizant, Infosys, Capgemini, Tata, Wipro and HCL.

The secretary said Adobe and Microsoft were also suspended "due to multiple active federal investigations."

"Since 2009, just these companies alone have requested almost 3 million foreign workers. They've received over 230,000 H-1B visas approvals and over 100,000 permanent labor certifications. That's hundreds of thousands of jobs that were taken from American workers," Sonderling said.

CNBC has reached out to Microsoft and Adobe for comment.

Read more CNBC tech newsGoogle ordered to halt work on two data centers in 'Texas of Europe'Meta joins with group of companies to tame 'chaos' of doing business with AI botsAnduril lands $2.9 billion Navy submarine shipyard contract days after Luckey joins Pentagon weapons groupAnthropic expands Claude Startups program in bid to snag founders and fast-growing companies

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Adobe Systems (ADBE - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this software maker have returned -10.4%, compared to the Zacks S&P 500 composite's +0.8% change. During this period, the Zacks Computer - Software industry, which Adobe falls in, has gained 2.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Adobe is expected to post earnings of $6.32 per share, indicating a change of +14.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.

The consensus earnings estimate of $24.47 for the current fiscal year indicates a year-over-year change of +16.9%. This estimate has changed +0.9% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $27.7 indicates a change of +13.2% from what Adobe is expected to report a year ago. Over the past month, the estimate has changed +0.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Adobe is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Adobe, the consensus sales estimate for the current quarter of $6.84 billion indicates a year-over-year change of +10.4%. For the current and next fiscal years, $26.6 billion and $29.06 billion estimates indicate +11.9% and +9.2% changes, respectively.

Last Reported Results and Surprise HistoryAdobe reported revenues of $6.76 billion in the last reported quarter, representing a year-over-year change of +12.9%. EPS of $6.13 for the same period compares with $5.31 a year ago.

Compared to the Zacks Consensus Estimate of $6.69 billion, the reported revenues represent a surprise of +1.02%. The EPS surprise was +0.82%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Adobe is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Adobe. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Shares of Adobe (ADBE -1.49%) have had a tough 2026. The stock ended last year at about $350 and trades near $240 as I write, down about 31%.

The software company has kept buying its own shares on the way down. In April, its board approved a new $25 billion stock buyback authorization, meant partly to "reduce share count over time." It runs through April 30, 2030.

And as Adobe's fiscal third quarter of 2026 ended Aug. 28, $24.55 billion of it was still unused.

Compared with Adobe's market value, the amount is large. With about 389.2 million shares outstanding in mid-September, Adobe is worth about $93 billion at today's stock price. The remaining authorization could buy back about 26% of it -- about 102 million shares.

Sure, an authorization isn't a promise. Adobe has around three and a half years to use it, and nothing forces the company to spend it all. But I think the company's pace this year shows it plans to put plenty of it to work.

Image source: Getty Images.

A steady, cash-funded paceIn the fiscal year's first three quarters, Adobe's buybacks averaged around $2.3 billion a quarter. That came to $6.82 billion, for 26.1 million shares, all bought on the open market.

And as the stock dropped, the same money bought more shares. The 9.5 million shares Adobe repurchased in fiscal Q3 cost an average of around $235 each, versus about $261 over all three quarters.

Notably, the company paid for it with cash from its operations. Adobe generated $7.65 billion of cash from operations during the same stretch, up around 11% year over year, and buybacks used close to 90% of it. Its balance sheet had $5.64 billion of cash and short-term investments at quarter-end, versus around $6.4 billion of debt.

This pace leaves room to spare. Spreading the unspent $24.55 billion evenly through April 2030 comes out to around $7 billion a year, about what Adobe spent in just those three quarters. If the company keeps buying at its recent rate instead, it could use up the authorization sometime in 2029.

Buybacks are doing about half the workAdobe's diluted share count (the number used to calculate earnings per share) was around 395 million in the fiscal third quarter. That compares to 402 million in the fiscal second quarter and 424 million in the year-ago quarter.

Management's fourth-quarter targets assume around 389 million. In other words, the count's dropping about 2% a quarter, and steadily.

Not every repurchased share sticks, though. Shares outstanding dropped by around 22 million in the nine months, fewer than the 26.1 million Adobe bought, because employee stock awards added some back.

Showing what the shrinking count means for shareholders, Adobe's non-GAAP (adjusted) net income rose around 8% year over year in fiscal Q3 to $2.42 billion. Adjusted earnings per share climbed 15% to $6.13.

On a GAAP basis, net income grew just 3%, but earnings per share climbed 11% to $4.62. In short, fewer shares drove about half of the quarter's adjusted per-share growth.

If Adobe spent all $24.55 billion at roughly $240 a share and its earnings stayed flat, retiring about 26% of its shares would raise earnings per share by over a third.

That won't happen all at once, and the price Adobe pays will move. A lower stock price would stretch the cash further, and a higher one would shrink it.

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Is the buyback a reason to buy?At roughly $240, Adobe shares cost about 13 times earnings. Using the midpoint of management's fiscal 2026 target for adjusted earnings per share ($24.45 to $24.50), the price is about 10 times adjusted earnings. When shares reached their 52-week high of $363.70, that same target worked out to almost 15 times adjusted earnings.

I'd say buying back stock at about 10 times adjusted earnings is one of the better uses of Adobe's cash right now.

True, a buyback can't fix slowing growth. Adobe's total annualized recurring revenue (ARR), its gauge of the subscription business on a yearly basis, rose 11.2% year over year in fiscal Q3, and management's full-year target is 10.2%. And the market's discount probably reflects worries that artificial intelligence tools might hurt Adobe's pricing power. But as long as the subscription business keeps growing, a falling share count should help earnings per share outpace the business itself.

All in all, I think the buyback makes a cheap stock more interesting. Adobe stock looks worth considering at this price, but I'd want the subscription business to keep growing at roughly its current pace.

Adobe's stock has collapsed while its revenue keeps hitting records, and Wall Street is stuck in a holding pattern. A specific combination of catalysts could change that calculus dramatically before 2027 is over.

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Adobe’s problem is perception. Investors worry that AI-native tools will chip away at Photoshop, Premiere and Acrobat. The business keeps growing anyway.

In fiscal Q3, Adobe (NASDAQ:ADBE | ADBE Price Prediction) posted record revenue of $6.76 billion, up 12.89% year over year. AI-first ARR passed $650 million and grew more than 150%.

“We’re just beginning to capitalize on the massive AI opportunity across creativity, productivity, and customer experiences,” said outgoing CEO Shantanu Narayen.

The stock has gone the other way. Shares are down 34.34% year-to-date at $229.82 and 63.09% over five years. So what would it take for Adobe to hit $300 in 2027?

Wall Street Sees 21% Upside as Estimates Creep Higher Analysts’ average price target of $278.15 implies about 21% upside. Sentiment is lukewarm, with 23 Hold ratings. The numbers are stronger than the mood. Consensus calls for EPS of $24.4735 in FY2026, rising to $27.6226 in FY2027. That works out to roughly 13% EPS growth on about 9% revenue growth. The FY2027 estimate has also edged up from $27.5501 90 days ago.

Adobe also keeps beating expectations. Q3 non-GAAP EPS came in at $6.13, against a consensus of $6.0866. That was the fifth consecutive beat, so actual results could top today’s forecasts.

Here’s What It Takes for Adobe to Reach $300 At $229.82, Adobe trades at about 8x FY2027 earnings estimates. At $300, that multiple would be about 11x. That’s still well below the S&P 500’s forward multiple of roughly 21x to 23x, and Adobe guides for a Q4 non-GAAP operating margin of about 44%.

What Could Push Adobe to $300? AI monetization: Firefly ending ARR grew 40% quarter over quarter. Management also put pricing increases on hold to keep adding users, so that option is still available for 2027. A huge user base: Monthly active users passed one billion. Creative freemium users crossed 100 million, growing greater than 70%. Buybacks: Adobe bought back about 9.5 million shares in Q3, and $24.55 billion remains under its current authorization. New leadership: Anil Chakravarthy becomes CEO on December 1st. “I see immense opportunity for Adobe to be the leader in agentic software for creativity, productivity, and customer experience,” he said. Near-term events: Adobe MAX and the Topaz Labs deal, set to close in Q4, both come ahead of a seasonally strong enterprise quarter. The risks: a weak market, a rough CEO transition or faster-moving AI rivals would make $300 harder to reach.

Adobe’s History Says $300 Is Possible Getting to $300 requires a gain of about 31%. Adobe has done better than that in 10 calendar years since 2000. Shares rose 77% in 2023 and 70% in 2017.

The most useful comparison may be 2009, when the stock rallied 73% from a low starting point. With a market cap of $91.35 billion, Adobe is small enough that a move that size is realistic.

$300 Is a Stretch, but Adobe Has the Tools to Get There Reaching $300 would take a 31% gain, more than the 21% Wall Street already guides for.

Several things support it: growing AI revenue, a billion users, a string of earnings beats and one of the lowest valuations among large software companies. If the new CEO settles in smoothly and the market cooperates, shares could return to 11x earnings. Returns this large shouldn’t be expected every year, but this is how Adobe could deliver outsized gains in 2027.

Contact [email protected] for any questions or corrections.

Adobe's analytics division projected $275.1 billion in U.S. online sales between Nov. 1 and Dec. 31, up 6.7% from the same period last year.

Adobe keeps beating earnings estimates while its stock collapses, leaving investors to wonder whether Wall Street is pricing in a threat that may never materialize or a disruption that already has.

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Adobe (NASDAQ:ADBE | ADBE Price Prediction) is a Hold at $235.47. Shares of the creative software leader trade as if the business were in decline, yet the company keeps raising its guidance.

Adobe makes Photoshop, Premiere, Acrobat and a customer experience suite that serves over 20,000 global enterprises. Third-quarter revenue rose 12.9% to $6.76 billion. Non-GAAP EPS of $6.13 was its 5th consecutive EPS beat. The stock still fell 32.72% year to date. Investors worry about generative AI rivals, a CEO transition to Anil Chakravarthy and the exit of the company’s former CFO.

Nine Times Forward Earnings for a Double-Digit Grower Bulls see a mispricing. Adobe trades at 9x forward earnings with a PEG ratio of 0.582. Management raised its full-year non-GAAP EPS guidance from an initial $23.30 to $23.50 to $24.45 to $24.50. AI-first ARR now tops $650 million and is growing more than 150%, which shows that customers pay for Firefly and agentic tools.

Capital returns support the case. Free cash flow rose 14.68% to $2.44 billion, and Adobe retired ~9.5M shares for $2.232B with approximately $24.55 billion of authorization remaining. On the insider side, Director David Ricks purchased 10,000 shares at $194.513 on the open market.

AI Rivals and Leadership Churn Test Adobe’s Moat Bears point to profits lagging sales. Net income grew just 3.1% in the quarter, while RPO growth slowed to 8%. Management put Creative Cloud price increases on hold to guide users into freemium, and it said that the shift pressures net new ARR.

Competition is getting louder. One widely discussed Reddit post read: “OpenAI releases ChatGPT Images 2.5. I expect Adobe stocks to nosedive once mass media gets a hold of this.” Add a $70M goodwill impairment in Publishing and Advertising, and the market views a business in transition.

A New CEO’s First Moves Decide the Next Leg Adobe’s execution rules out a Sell, and the unclear AI outlook rules out a Buy. The stock sits below its 50-day average of $257.41 and its 200-day average of $263.2, so momentum has not turned. The next few months bring Adobe MAX, Chakravarthy’s first strategy statements as CEO, the close of the Topaz Labs deal and a seasonally strong fourth quarter.

A 33% Slide While the Market Climbed Across 40 analysts, the average price target is $278.15, which implies about 18.1% upside. Price targets reflect analysts’ views and often miss. The ratings break down as follows:

Strong Buy: 4 Buy: 8 Hold: 23 Sell: 4 Strong Sell: 1 The stock trades at 13x trailing earnings, inside a 52-week range of $190.12 to $363.7. Over the past year, Adobe fell 33.51% while the S&P 500 rose 17.22%. Over the past month, the stock dropped 13.9% against a 0.69% rose for the index.

Adobe Is a Hold Until Freemium Converts At $235.47, Adobe is a Hold.

The valuation already prices in a lot of bad news, but buying the stock needs a reason for it to rebound. The first trigger for a Buy is fourth-quarter results that meet guidance of $6.80B to $6.85B in revenue with a margin near 44.0%, together with a increase in RPO growth. The second is proof that freemium users, now over 100 million on the creative side alone, are turning into paying subscribers.

A Sell case would build if ARR growth misses the 10.2% target or if analysts cut fiscal 2027 estimates, which currently average 27.6226. Because the stock has a beta of 1.417, it can swing sharply in either direction.

Waiting costs little. The stock pays no dividend, and the new CEO’s first full quarter will show whether Adobe’s AI spending leads to profit growth. At this price, patience lets investors see the new CEO’s results before taking a position.

Contact [email protected] for any questions or corrections.