Adobe Inc. (NASDAQ:ADBE – Free Report) – Analysts at Erste Group Bank upped their FY2026 EPS estimates for Adobe in a research report issued to clients and investors on Thursday, June 25th. Erste Group Bank analyst H. Engel now anticipates that the software company will post earnings per share of $19.87 for the year, up from their prior forecast of $18.97. The consensus estimate for Adobe’s current full-year earnings is $19.80 per share. Erste Group Bank also issued estimates for Adobe’s FY2027 earnings at $22.28 EPS.
A number of other brokerages have also recently commented on ADBE. William Blair cut shares of Adobe from an “outperform” rating to a “market perform” rating in a research report on Thursday, March 26th. Sanford C. Bernstein cut their price target on shares of Adobe from $447.00 to $379.00 and set an “outperform” rating for the company in a research report on Friday, June 12th. Dbs Bank cut Adobe from a “moderate buy” rating to a “hold” rating in a research note on Tuesday, May 19th. BMO Capital Markets decreased their price objective on Adobe from $285.00 to $230.00 and set a “market perform” rating on the stock in a report on Friday, June 12th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Adobe in a research note on Wednesday, June 3rd. Six analysts have rated the stock with a Buy rating, twenty-two have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, Adobe has an average rating of “Hold” and an average price target of $278.40.
Adobe Price Performance
Shares of Adobe stock opened at $210.98 on Thursday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. Adobe has a 52-week low of $190.12 and a 52-week high of $386.88. The company has a fifty day moving average of $234.18 and a 200-day moving average of $266.42. The stock has a market capitalization of $83.86 billion, a price-to-earnings ratio of 12.07, a price-to-earnings-growth ratio of 0.72 and a beta of 1.44.
Adobe (NASDAQ:ADBE – Get Free Report) last posted its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping the consensus estimate of $5.82 by $0.14. The firm had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business’s revenue was up 12.7% compared to the same quarter last year. During the same period last year, the firm posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS.
Adobe declared that its Board of Directors has approved a share repurchase plan on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to buy up to 24.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.
Insider Activity
In other news, Director David A. Ricks acquired 10,000 shares of the firm’s stock in a transaction on Thursday, June 25th. The shares were purchased at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the transaction, the director owned 17,655 shares of the company’s stock, valued at $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the business’s stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the completion of the transaction, the chief executive officer owned 359,538 shares in the company, valued at $87,561,884.52. The trade was a 17.26% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is owned by corporate insiders.
Institutional Trading of Adobe
A number of institutional investors have recently modified their holdings of ADBE. Norges Bank purchased a new position in Adobe during the 4th quarter valued at about $2,275,165,000. Arrowstreet Capital Limited Partnership lifted its holdings in Adobe by 53.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company’s stock worth $1,981,448,000 after buying an additional 1,952,994 shares during the period. Dodge & Cox grew its position in shares of Adobe by 8,006.6% in the 3rd quarter. Dodge & Cox now owns 1,593,506 shares of the software company’s stock worth $562,109,000 after buying an additional 1,573,849 shares during the last quarter. AQR Capital Management LLC grew its position in shares of Adobe by 55.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock worth $912,705,000 after buying an additional 920,353 shares during the last quarter. Finally, Amundi increased its stake in shares of Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company’s stock valued at $1,711,583,000 after buying an additional 742,646 shares during the period. 81.79% of the stock is currently owned by hedge funds and other institutional investors.
Key Adobe News
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: HSBC upgraded Adobe to Buy and raised its price target to $308, pointing to strong quarterly results and limited downside from AI competition. Adobe Stock (ADBE) Jumps after Top Analyst Upgrades It to Buy and Raises Price Target
- Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 EPS estimates for Adobe, suggesting analysts see earnings momentum continuing.
- Positive Sentiment: Adobe’s new Firefly Foundry platform and the Topaz Labs acquisition bolster its AI product strategy, which could expand enterprise demand and strengthen its creative software ecosystem. Adobe (ADBE) Launches Firefly Foundry to Enable Enterprise Custom AI Model Development
- Positive Sentiment: Recent commentary highlighted Adobe’s record quarterly performance and improving freemium user growth, supporting the view that the business is still executing well despite stock weakness.
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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