Adobe (NASDAQ:ADBE – Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 24.350-24.450 for the period, compared to the consensus earnings per share estimate of 22.670. The company issued revenue guidance of $26.5 billion-$26.6 billion, compared to the consensus revenue estimate of $26.1 billion. Adobe also updated its Q3 2026 guidance to 6.050-6.100 EPS.
Analysts Set New Price Targets
A number of analysts have weighed in on the company. Jefferies Financial Group reduced their price target on Adobe from $400.00 to $290.00 and set a “hold” rating for the company in a research report on Monday, February 23rd. JPMorgan Chase & Co. reduced their price target on Adobe from $520.00 to $420.00 and set an “overweight” rating for the company in a research report on Friday, March 13th. Mizuho reaffirmed a “neutral” rating and issued a $270.00 price target (down from $315.00) on shares of Adobe in a research report on Monday, April 27th. Sanford C. Bernstein set a $447.00 price target on Adobe and gave the stock an “outperform” rating in a research report on Friday, March 13th. Finally, Wall Street Zen cut Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seventeen have issued a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $331.65.
Check Out Our Latest Analysis on ADBE
Adobe Stock Performance
Adobe (NASDAQ:ADBE – Get Free Report) last posted its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, topping the consensus estimate of $5.83 by $0.13. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The business had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, sell-side analysts expect that Adobe will post 19.14 earnings per share for the current fiscal year.
Adobe declared that its board has authorized a stock repurchase program on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.
Insider Buying and Selling
In related news, CEO Shantanu Narayen sold 75,000 shares of the business’s stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the transaction, the chief executive officer directly owned 359,538 shares in the company, valued at $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Daniel Durn sold 1,336 shares of the business’s stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $248.02, for a total value of $331,354.72. Following the transaction, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This represents a 3.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 77,091 shares of company stock valued at $18,782,773. Insiders own 0.20% of the company’s stock.
More Adobe News
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: Analysts still expect Adobe to post year-over-year revenue growth and another earnings beat, with some coverage noting a long streak of revenue beats heading into the report.
- Positive Sentiment: A new federal bill focused on stylistic impersonation and AI-generated art could underscore the importance of Adobe’s creative tools and IP protections over time.
- Neutral Sentiment: Options markets are pricing in a large post-earnings move, showing that traders expect the results and guidance to materially reset sentiment in either direction.
- Neutral Sentiment: Market chatter around a possible CEO transition and new AI leadership has added uncertainty, but it is not yet a confirmed catalyst.
- Negative Sentiment: Investors are increasingly skeptical that Adobe’s AI push is translating into durable growth, with multiple reports saying the stock is falling ahead of earnings because of doubts about the AI narrative. Adobe Stock Sinks to Multi-Year Low Ahead of Earnings
- Negative Sentiment: The stock is near a multi-year or 52-week low, and several articles note that traders are worried Adobe may not deliver enough in Q2 results to change the narrative. Adobe Q2 Earnings: Will 13-Quarter Revenue Beat Streak Survive Macro Pressure?
- Negative Sentiment: Commentary from market watchers and Jim Cramer highlighted competition, shrinking SaaS enthusiasm, and a lack of obvious catalysts, reinforcing the bearish pre-earnings tone. Adobe Faces Make-or-Break Earnings Test as Traders Brace for Big Stock Swing
Hedge Funds Weigh In On Adobe
Several institutional investors and hedge funds have recently added to or reduced their stakes in ADBE. Compound Planning Inc. grew its position in Adobe by 52.3% during the 4th quarter. Compound Planning Inc. now owns 5,181 shares of the software company’s stock worth $1,813,000 after acquiring an additional 1,779 shares during the last quarter. Axxcess Wealth Management LLC grew its position in Adobe by 46.5% during the 4th quarter. Axxcess Wealth Management LLC now owns 3,224 shares of the software company’s stock worth $1,128,000 after acquiring an additional 1,024 shares during the last quarter. Corient Private Wealth LLC grew its position in Adobe by 89.6% during the 4th quarter. Corient Private Wealth LLC now owns 430,537 shares of the software company’s stock worth $150,684,000 after acquiring an additional 203,494 shares during the last quarter. Strive Financial Group LLC bought a new stake in Adobe during the 4th quarter worth approximately $2,535,000. Finally, Blue Sparrow LLC DE bought a new stake in Adobe during the 4th quarter worth approximately $17,500,000. 81.79% of the stock is currently owned by institutional investors.
Adobe Company Profile
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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