Adobe (NASDAQ:ADBE) Price Target Lowered to $280.00 at Piper Sandler

Key Points

• Piper Sandler cut its price target on Adobe from $330 to $280 and kept a "neutral" rating, while several other firms have trimmed targets—MarketBeat's consensus target remains about $346.96.
• Adobe reported record Q1 results, beating EPS and revenue estimates and saying AI‑first annualized recurring revenue more than tripled year‑over‑year, with FY‑2026 guidance set at $23.30–$23.50 EPS.
• Leadership and headline risk weighed on the stock: CEO Shantanu Narayen said he will transition once a successor is named, shares fell about 5.7% to $254.30, and Adobe agreed to a $75 million settlement related to subscription cancellation fees.

Adobe (NASDAQ:ADBE - Get Free Report) had its target price cut by analysts at Piper Sandler from $330.00 to $280.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the software company's stock. Piper Sandler's target price indicates a potential upside of 10.11% from the company's current price.

ADBE has been the subject of a number of other reports. Mizuho reduced their price target on shares of Adobe from $340.00 to $315.00 and set an "outperform" rating for the company in a report on Friday. Wells Fargo & Company cut their price objective on shares of Adobe from $420.00 to $405.00 and set an "overweight" rating on the stock in a research report on Monday. HSBC set a $302.00 target price on Adobe in a research note on Friday, February 13th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $430.00 price target on shares of Adobe in a research note on Monday. Finally, Stifel Nicolaus cut their price target on Adobe from $480.00 to $450.00 and set a "buy" rating on the stock in a report on Tuesday, December 9th. One 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. Based on data from MarketBeat.com, Adobe presently has an average rating of "Hold" and a consensus target price of $346.96.

Adobe Trading Down 5.7%

Shares of Adobe stock traded down $15.48 on Friday, reaching $254.30. 7,388,223 shares of the company's stock were exchanged, compared to its average volume of 5,622,554. The company has a market capitalization of $104.39 billion, a P/E ratio of 15.16, a price-to-earnings-growth ratio of 1.08 and a beta of 1.53. Adobe has a 52 week low of $244.28 and a 52 week high of $422.95. The firm's 50-day moving average is $285.56 and its two-hundred day moving average is $324.01. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, topping the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company had revenue of $6.40 billion during the quarter, compared to the consensus estimate of $6.28 billion. During the same quarter last year, the firm posted $5.08 EPS. The company's quarterly revenue was up 12.0% on a year-over-year basis. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Sell-side analysts predict that Adobe will post 16.65 EPS for the current fiscal year.

Insider Activity at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the business's stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the completion of the sale, the chief financial officer directly owned 41,995 shares of the company's stock, valued at $12,382,225.75. The trade was a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Adobe

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of Adobe by 0.8% in the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock valued at $14,593,054,000 after buying an additional 344,816 shares during the period. State Street Corp grew its stake in shares of Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company's stock worth $7,277,941,000 after acquiring an additional 352,448 shares during the period. Geode Capital Management LLC grew its stake in shares of Adobe by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company's stock worth $4,027,170,000 after acquiring an additional 414,049 shares during the period. Norges Bank purchased a new stake in Adobe in the 4th quarter worth about $2,275,165,000. Finally, Arrowstreet Capital Limited Partnership increased its holdings in Adobe by 10.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company's stock worth $2,179,914,000 after acquiring an additional 611,358 shares during the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

Key Stories Impacting Adobe

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

About Adobe

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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