Adobe (NASDAQ:ADBE) Releases Quarterly Earnings Results, Misses Estimates By $0.86 EPS

Adobe (NASDAQ:ADBE - Get Free Report) released its quarterly earnings results on Thursday. The software company reported $4.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.96 by ($0.86), Zacks reports. Adobe had a net margin of 25.85% and a return on equity of 45.87%. The company had revenue of $5.87 billion during the quarter, compared to analysts' expectations of $5.80 billion. During the same period last year, the firm posted $4.48 earnings per share. Adobe's revenue was up 10.6% on a year-over-year basis. Adobe updated its Q3 2025 guidance to 5.150-5.200 EPS and its FY 2025 guidance to 20.500-20.700 EPS.

Adobe Stock Performance

ADBE stock traded down $23.75 during midday trading on Friday, hitting $389.93. The stock had a trading volume of 6,084,631 shares, compared to its average volume of 3,430,711. The firm has a market capitalization of $166.19 billion, a price-to-earnings ratio of 31.51, a P/E/G ratio of 2.15 and a beta of 1.55. Adobe has a 52 week low of $332.01 and a 52 week high of $587.75. The stock has a 50-day simple moving average of $385.73 and a 200 day simple moving average of $422.64. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.29.

Insider Buying and Selling at Adobe

In other Adobe news, CFO Daniel Durn bought 1,300 shares of the stock in a transaction dated Thursday, March 20th. The stock was bought at an average cost of $390.58 per share, for a total transaction of $507,754.00. Following the completion of the purchase, the chief financial officer now owns 29,876 shares in the company, valued at $11,668,968.08. This represents a 4.55% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.16% of the company's stock.

Institutional Trading of Adobe

A hedge fund recently raised its stake in Adobe stock. Brighton Jones LLC increased its holdings in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 2.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 8,068 shares of the software company's stock after buying an additional 167 shares during the period. Brighton Jones LLC's holdings in Adobe were worth $3,588,000 at the end of the most recent quarter. 81.79% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Bank of America dropped their price objective on shares of Adobe from $605.00 to $528.00 and set a "buy" rating on the stock in a research report on Thursday, March 13th. KeyCorp upgraded shares of Adobe from an "underweight" rating to a "sector weight" rating in a report on Friday, March 21st. Stifel Nicolaus lowered their target price on shares of Adobe from $600.00 to $525.00 and set a "buy" rating for the company in a report on Thursday, March 13th. Wall Street Zen upgraded shares of Adobe from a "hold" rating to a "buy" rating in a report on Thursday, May 22nd. Finally, Robert W. Baird decreased their price target on shares of Adobe from $490.00 to $410.00 and set a "neutral" rating for the company in a research note on Wednesday, March 19th. Nine analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $500.63.

About Adobe

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.