Adobe (NASDAQ:ADBE) Price Target Cut to $235.00 by Analysts at KeyCorp

Key Points

• KeyCorp cut its price target on Adobe from $310 to $235 and kept an "underweight" rating, implying about a 7.6% downside from the prior close amid broader analyst target trims.
• Adobe reported record Q1 results, beating EPS ($6.06 vs. $5.87 est.) and revenue ($6.40B vs. $6.28B) and guiding FY‑2026 EPS to $23.30–23.50, with AI‑first annualized recurring revenue reportedly tripling year‑over‑year.
• Leadership and market reaction: CEO Shantanu Narayen said he will transition once a successor is named, fueling succession risk and analyst caution; shares fell about 5.7% to $254.30 and several firms lowered targets or ratings.

Adobe (NASDAQ:ADBE - Get Free Report) had its price target decreased by stock analysts at KeyCorp from $310.00 to $235.00 in a report released on Friday, Marketbeat Ratings reports. The brokerage currently has an "underweight" rating on the software company's stock. KeyCorp's target price points to a potential downside of 7.59% from the company's previous close.

Other analysts have also recently issued research reports about the company. Robert W. Baird set a $350.00 price target on Adobe in a research report on Wednesday, January 14th. UBS Group lowered their price objective on Adobe from $375.00 to $340.00 and set a "neutral" rating on the stock in a report on Monday, January 26th. DA Davidson reissued a "buy" rating and issued a $500.00 price objective on shares of Adobe in a research note on Thursday, December 11th. Wolfe Research reduced their target price on Adobe from $450.00 to $440.00 and set an "outperform" rating for the company in a report on Thursday, December 11th. Finally, Weiss Ratings cut Adobe from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 6th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, eleven have issued a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $346.96.

Adobe Stock Down 5.7%

Shares of ADBE traded down $15.48 during mid-day trading on Friday, hitting $254.30. 7,388,223 shares of the company's stock were exchanged, compared to its average volume of 5,622,554. The stock has a market cap of $104.39 billion, a price-to-earnings ratio of 15.16, a P/E/G ratio of 1.08 and a beta of 1.53. The firm has a fifty day moving average of $285.56 and a two-hundred day moving average of $324.01. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.53. Adobe has a twelve month low of $244.28 and a twelve month high of $422.95.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.19. The business had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. Adobe's quarterly revenue was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $5.08 EPS. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, sell-side analysts forecast that Adobe will post 16.65 earnings per share for the current year.

Insider Activity at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of Adobe stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total value of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at approximately $12,382,225.75. The trade was a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.20% of the company's stock.

Institutional Trading of Adobe

Hedge funds have recently added to or reduced their stakes in the business. Riverbend Wealth Management LLC grew its holdings in shares of Adobe by 1.8% during the 3rd quarter. Riverbend Wealth Management LLC now owns 1,668 shares of the software company's stock worth $588,000 after purchasing an additional 29 shares in the last quarter. Intellus Advisors LLC raised its stake in shares of Adobe by 1.6% in the second quarter. Intellus Advisors LLC now owns 1,860 shares of the software company's stock valued at $720,000 after purchasing an additional 30 shares in the last quarter. Beacon Financial Advisory LLC lifted its position in Adobe by 5.5% in the third quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company's stock worth $204,000 after purchasing an additional 30 shares during the period. MCF Advisors LLC lifted its position in Adobe by 20.8% in the third quarter. MCF Advisors LLC now owns 174 shares of the software company's stock worth $61,000 after purchasing an additional 30 shares during the period. Finally, Dakota Community Bank & Trust NA boosted its stake in Adobe by 12.8% during the second quarter. Dakota Community Bank & Trust NA now owns 274 shares of the software company's stock worth $106,000 after buying an additional 31 shares in the last quarter. Institutional investors own 81.79% of the company's stock.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q1 results: revenue and EPS topped expectations and the company said AI‑first annualized recurring revenue more than tripled year‑over‑year, evidence that AI products are driving adoption. Adobe Delivers Record Q1 Results
• Positive Sentiment: Adobe emphasized continued product momentum and has been repurchasing stock, signaling management confidence in the balance sheet and long‑term cash returns to shareholders. Adobe's Revenue Accelerates. Is It Time to Buy This?
• Neutral Sentiment: Management issued FY‑2026 and Q2 guidance that market participants are parsing for evidence of AI monetization; some see guidance as adequate, others view the tone as cautious amid sector volatility. Adobe Q1 earnings and guidance (MarketBeat)
• Negative Sentiment: CEO Shantanu Narayen said he will transition from the CEO role once a successor is named; investors are unsettled by leadership uncertainty at a pivotal moment for Adobe’s AI strategy. Shantanu Narayen Announces Decision to Transition as Adobe's CEO
• Negative Sentiment: The market reaction has been sharp: shares are down after hours/premarket as traders price in succession risk and renewed AI‑disruption concerns that have pressured software valuations. Adobe shares drop after CEO exit adds to AI‑disruption concerns (Reuters)
• Negative Sentiment: Adobe agreed to pay $75 million to resolve a U.S. lawsuit over subscription cancellation fees — modest vs. Adobe’s market cap but another near‑term headline and cash outflow. Adobe to pay $75M to resolve US lawsuit (Reuters)
• Negative Sentiment: Several analysts trimmed price targets or issued cautious notes after the report and leadership news, adding downward pressure until clarity on succession and AI monetization emerges. TD Cowen Lowers PT on Adobe

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.