Adobe Inc. (NASDAQ:ADBE) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Adobe has a consensus “Hold” rating from 31 brokerages, with 5 sell ratings, 21 holds, and 5 buys. The average 12-month price target is $278.16.
• The company posted better-than-expected quarterly results, reporting EPS of $5.96 versus estimates of $5.82 and revenue of $6.62 billion versus $6.45 billion expected. Adobe also issued FY 2026 and Q3 2026 guidance.
• Despite the earnings beat, the stock has fallen sharply, opening at $196.28 and trading near its 52-week low. Recent analyst downgrades and insider selling have added to cautious sentiment.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) has earned a consensus rating of "Hold" from the thirty-one brokerages that are presently covering the company, MarketBeat.com reports. Five equities research analysts have rated the stock with a sell rating, twenty-one have given a hold rating and five have assigned a buy rating to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $278.16.

ADBE has been the topic of a number of analyst reports. Evercore set a $225.00 price objective on shares of Adobe and gave the company an "in-line" rating in a research report on Friday, June 12th. Wolfe Research lowered shares of Adobe from an "outperform" rating to a "peer perform" rating in a research note on Friday, June 12th. Freedom Capital lowered shares of Adobe from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 12th. Mizuho lowered their target price on shares of Adobe from $270.00 to $245.00 and set a "neutral" rating for the company in a research note on Friday, June 12th. Finally, Sanford C. Bernstein lowered their target price on shares of Adobe from $447.00 to $379.00 and set an "outperform" rating for the company in a research note on Friday, June 12th.

Insider Activity

In other news, CAO Jillian Forusz sold 755 shares of the business's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the sale, the chief accounting officer directly owned 3,521 shares of the company's stock, valued at approximately $867,046.25. The trade was a 17.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Shantanu Narayen sold 75,000 shares of the business's stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the sale, the chief executive officer directly owned 359,538 shares of the company's stock, valued at $87,561,884.52. This represents a 17.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by company insiders.

Institutional Trading of Adobe

A number of large investors have recently made changes to their positions in the stock. SWAN Capital LLC lifted its stake in Adobe by 43.1% in the third quarter. SWAN Capital LLC now owns 103 shares of the software company's stock worth $36,000 after acquiring an additional 31 shares during the period. Logan Capital Management Inc. lifted its stake in Adobe by 0.3% in the third quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company's stock worth $3,453,000 after acquiring an additional 32 shares during the period. Peoples Bank KS lifted its stake in Adobe by 1.6% in the fourth quarter. Peoples Bank KS now owns 2,041 shares of the software company's stock worth $714,000 after acquiring an additional 33 shares during the period. Rosenberg Matthew Hamilton lifted its stake in Adobe by 16.1% in the fourth quarter. Rosenberg Matthew Hamilton now owns 245 shares of the software company's stock worth $86,000 after acquiring an additional 34 shares during the period. Finally, Marquette Asset Management LLC lifted its stake in Adobe by 72.3% in the fourth quarter. Marquette Asset Management LLC now owns 81 shares of the software company's stock worth $28,000 after acquiring an additional 34 shares during the period. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Trading Down 5.3%

ADBE stock opened at $196.28 on Thursday. The company has a quick ratio of 0.91, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. Adobe has a twelve month low of $195.02 and a twelve month high of $392.58. The stock has a market capitalization of $78.02 billion, a price-to-earnings ratio of 11.23, a price-to-earnings-growth ratio of 0.72 and a beta of 1.42. The firm's fifty day simple moving average is $242.14 and its two-hundred day simple moving average is $275.90.

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, beating analysts' consensus estimates of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business had revenue of $6.62 billion for the quarter, compared to analysts' expectations of $6.45 billion. During the same quarter in the previous year, the business posted $5.06 earnings per share. The business's revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, analysts anticipate that Adobe will post 19.79 earnings per share for the current year.

Adobe announced that its Board of Directors has initiated a share buyback plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the software company to purchase up to 24.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe announced Adobe Brand Visibility and new GenStudio for Commerce Media Networks tools, aimed at helping companies stay visible, trusted, and on-brand across AI-driven search and shopping surfaces. Introducing Adobe Brand Visibility: A Unified Solution for the AI Search Era
• Positive Sentiment: Adobe and LinkedIn launched a global AI skills initiative for marketers, reinforcing Adobe’s role in AI education and enterprise workflow adoption. Adobe & LinkedIn Launch Global AI Skills Initiative for Marketing Professionals
• Positive Sentiment: Multiple commentary pieces highlighted Adobe as a potentially undervalued software name after the selloff, suggesting some investors see the pullback as a buying opportunity. Microsoft vs. Adobe: Which High ROIC Software Stock is the Best Buy-the-Dip Target?
• Neutral Sentiment: Adobe executives discussed how AI is changing brand discovery and online visibility, which supports the company’s AI narrative but does not yet translate into immediate financial results. How AI is Changing the Branding Game: Integrating AI Optimization & Trust
• Negative Sentiment: Investor sentiment remains weak after reports about the surprise departure of Adobe’s CFO and broader concerns about slowing spend and softer AI credit demand. Adobe Sinks After CFO Departure. It’s Now a Classic Battleground Stock.
• Negative Sentiment: Jim Cramer struck a bearish tone on Adobe, pointing to the CEO resignation and CFO change as reasons he does not want investors in the stock right now. Jim Cramer on Adobe: “I Don’t Want You in It”

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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