Adobe (NASDAQ:ADBE) Price Target Cut to $325.00 by Analysts at TD Cowen

Key Points

• TD Cowen cut its price target on Adobe from $400 to $325 and kept a "hold" rating, which implies about a 15% upside from the prior close.
• Analysts are mixed with a consensus Hold and an average price target of $383.08 (1 Strong Buy, 10 Buy, 11 Hold, 4 Sell), while some firms like RBC and DA Davidson still carry much higher targets ($430 and $500).
• Adobe recently beat quarterly estimates (EPS $5.50 vs. $5.40; revenue $6.19B vs. $6.11B) and issued FY2026 guidance of 23.30–23.50 EPS and Q1 guidance of 5.85–5.90 EPS, yet the stock trades around $282, below its 200‑day moving average of $325.

Adobe (NASDAQ:ADBE - Get Free Report) had its target price dropped by analysts at TD Cowen from $400.00 to $325.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has a "hold" rating on the software company's stock. TD Cowen's target price points to a potential upside of 15.07% from the company's previous close.

A number of other equities research analysts have also weighed in on ADBE. Wells Fargo & Company decreased their price objective on shares of Adobe from $420.00 to $405.00 and set an "overweight" rating for the company in a report on Monday. Weiss Ratings cut Adobe from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday. HSBC set a $302.00 target price on shares of Adobe in a report on Friday, February 13th. DA Davidson reaffirmed a "buy" rating and set a $500.00 price target on shares of Adobe in a research report on Thursday, December 11th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $430.00 target price on shares of Adobe in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $383.08.

Adobe Stock Performance

Adobe stock opened at $282.43 on Tuesday. Adobe has a 1 year low of $244.28 and a 1 year high of $444.54. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.53. The company has a market cap of $115.94 billion, a PE ratio of 16.90, a PEG ratio of 1.12 and a beta of 1.53. The company's 50-day moving average is $290.24 and its two-hundred day moving average is $325.36.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating analysts' consensus estimates of $5.40 by $0.10. The business had revenue of $6.19 billion for the quarter, compared to analysts' expectations of $6.11 billion. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The firm's revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $4.81 EPS. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. Equities analysts anticipate that Adobe will post 16.65 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Daniel Durn sold 1,646 shares of the company's stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the completion of the sale, the chief financial officer owned 41,995 shares in the company, valued at $12,382,225.75. This represents a 3.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.20% of the company's stock.

Institutional Investors Weigh In On Adobe

Several hedge funds and other institutional investors have recently modified their holdings of ADBE. Riverbend Wealth Management LLC boosted its position in shares of Adobe by 1.8% in 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 grew its holdings in Adobe by 1.6% during the 2nd quarter. Intellus Advisors LLC now owns 1,860 shares of the software company's stock worth $720,000 after acquiring an additional 30 shares in the last quarter. Beacon Financial Advisory LLC boosted its holdings in shares of Adobe by 5.5% in the third quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company's stock valued at $204,000 after acquiring an additional 30 shares during the period. MCF Advisors LLC lifted its holdings in shares of Adobe by 20.8% in the 3rd quarter. MCF Advisors LLC now owns 174 shares of the software company's stock valued at $61,000 after buying an additional 30 shares during the period. Finally, Dakota Community Bank & Trust NA grew its position in shares of Adobe by 12.8% in the second quarter. Dakota Community Bank & Trust NA now owns 274 shares of the software company's stock valued at $106,000 after purchasing an additional 31 shares during the last quarter. 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: Michael Burry and other institutional buyers have taken new positions in Adobe, providing a high‑profile vote of confidence in Adobe’s AI transition and value case — supportive for sentiment and a potential demand catalyst. Michael Burry Backs Adobe As AI Transition Meets Deep Value Debate
• Positive Sentiment: Adobe expanded its partnership with Major League Baseball to deliver AI‑driven fan experiences — a commercial win that highlights enterprise adoption of Adobe’s AI tools and could help monetize new use cases. Adobe and Major League Baseball Expand Partnership to Power Next Generation Digital Fan Experiences
• Positive Sentiment: Royal Bank of Canada reaffirmed an "outperform" rating with a $430 price target, signaling some analysts still see meaningful upside if Adobe executes on AI monetization. RBC Reaffirms Outperform on Adobe
• Neutral Sentiment: Analysts’ consensus currently sits at "Hold," reflecting mixed expectations ahead of results and reducing conviction among some investors. Adobe Inc. NASDAQ: ADBE Receives Consensus Rating of "Hold" from Analysts
• Neutral Sentiment: Options‑market activity shows traders expect a sizable move around earnings — implies higher implied volatility and potential for sharp intraday swings post‑report. Adobe Is About to Report Q1 Earnings. Options Traders Expect a Major Move in ADBE Stock
• Neutral Sentiment: Multiple earnings previews flag Adobe’s March 12 report as the key near‑term catalyst; estimates and commentary on AI product monetization (Firefly, Acrobat, Express) will likely drive reaction more than headline revenue alone. Adobe Earnings Preview: Are AI Fears Overblown?
• Neutral Sentiment: NVIDIA unveiled an open‑source AI agent platform (NemoClaw) being pitched to companies including Adobe — a development that could be a partner opportunity or competitive risk depending on integration and go‑to‑market dynamics. Nvidia (NVDA) Stock Rises as NemoClaw Open-Source AI Agent Platform Emerges
• Neutral Sentiment: Reported short‑interest data is effectively flat/insignificant in the latest snapshot, so short squeezes are unlikely to be a near‑term driver. (Data shows zero reported short shares in the entry.)
• Negative Sentiment: Citigroup trimmed its price target (to $315) and characterized Q1 as likely "uneventful," which can pressure sentiment and reduce upside expectations ahead of the print. Citigroup Cuts Adobe NASDAQ: ADBE Price Target to $315.00
• Negative Sentiment: Sen. John Boozman reported selling Adobe shares — an instance of public insider/insider‑adjacent selling that can be interpreted negatively by some investors. Sen. John Boozman Sells Off Shares of Adobe Inc. NASDAQ: ADBE
• Negative Sentiment: Several outlets frame Adobe as facing a critical Q1 test after a YTD decline; heightened expectations for AI adoption mean guidance and product‑level metrics could trigger outsized downside if they disappoint. Adobe (ADBE) Stock Faces Critical Q1 Earnings Test Amid 20% YTD Decline

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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