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

Key Points

• Adobe has a consensus “Hold” rating from 33 analysts: 21 holds, seven buys and five sells. The average 12-month price target is $272.80.
• Analysts remain divided, with price targets ranging from Goldman Sachs’ $190 sell target to HSBC’s $308 buy target. Adobe’s AI-driven customer-experience growth and improving software-sector sentiment are positives, but its underperformance and need to convert AI adoption into sustained revenue growth remain concerns.
• Adobe’s next major catalyst is its fiscal third-quarter 2026 earnings report, scheduled for September 10. Its previous quarter exceeded expectations, with $5.96 in EPS and $6.62 billion in revenue, up 12.7% year over year.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) has received an average rating of "Hold" from the thirty-three ratings firms that are covering the company, Marketbeat Ratings reports. Five analysts have rated the stock with a sell rating, twenty-one have assigned a hold rating and seven have issued a buy rating on the company. The average 12 month price target among analysts that have covered the stock in the last year is $272.80.

ADBE has been the topic of several research analyst reports. The Goldman Sachs Group lowered their price objective on shares of Adobe from $220.00 to $190.00 and set a "sell" rating on the stock in a research note on Friday, June 12th. Evercore set a $225.00 target price on shares of Adobe and gave the company an "in-line" rating in a research note on Friday, June 12th. HSBC upgraded Adobe from a "hold" rating to a "buy" rating and lifted their price objective for the company from $282.00 to $308.00 in a research report on Thursday, July 2nd. Robert W. Baird lowered their price target on shares of Adobe from $270.00 to $230.00 and set a "neutral" rating for the company in a report on Friday, June 12th. Finally, Weiss Ratings downgraded shares of Adobe from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, August 17th.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s AI-driven customer-experience business is gaining momentum, with accelerating AI-first annual recurring revenue, broader adoption of AI agents and deeper ecosystem partnerships. The trend supports Adobe’s ability to compete with Salesforce and Microsoft in enterprise software. Adobe's AI-Driven CXO Growth Strengthens Against CRM & Microsoft
• Positive Sentiment: Improving sentiment toward software stocks is also supportive. Recent earnings from major software companies have suggested that AI is expanding demand rather than rapidly eroding traditional software businesses, easing “SaaSpocalypse” concerns that had pressured the sector. The SaaSpocalypse Trade Is Cracking
• Neutral Sentiment: Adobe expanded its partnership with Saudi Arabia’s Ministry of Communications and Information Technology and HUMAIN. The agreement provides more than 27 million eligible citizens and residents with 12 months of free access to Firefly and Adobe Express, representing over $4 billion in stated access value. The initiative could increase long-term adoption and support Saudi Arabia’s creative economy, although free access may delay near-term monetization. Adobe to Offer Free Access to AI Tools in Saudi Arabia
• Neutral Sentiment: Adobe will release fiscal third-quarter 2026 results after the market closes on September 10, followed by an investor conference call. The report is a major near-term catalyst, with options markets implying substantial potential volatility around earnings. Adobe to Announce Q3 FY2026 Earnings Results
• Negative Sentiment: Analysts remain cautious because Adobe has significantly lagged the S&P 500 over the past year, and the upcoming earnings report must demonstrate that AI-related growth can translate into sustained revenue and subscription expansion. Is Adobe Stock Underperforming the S&P 500?

Adobe Trading Up 0.4%

Adobe stock opened at $292.79 on Tuesday. The firm's 50 day moving average price is $242.63 and its two-hundred day moving average price is $245.19. The firm has a market cap of $116.38 billion, a price-to-earnings ratio of 16.75, a price-to-earnings-growth ratio of 0.98 and a beta of 1.40. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. Adobe has a 1 year low of $190.12 and a 1 year high of $370.86.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.82 by $0.14. The company had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The company's revenue was up 12.7% on a year-over-year basis. During the same period in the previous year, the business earned $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, research analysts predict that Adobe will post 19.81 EPS for the current fiscal year.

Insider Activity at Adobe

In related news, Director David A. Ricks purchased 10,000 shares of the firm's stock in a transaction on Thursday, June 25th. The stock was purchased at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the purchase, the director directly owned 17,655 shares in the company, valued at $3,434,074.05. This trade represents a 130.63% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Jillian Forusz sold 416 shares of the firm's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the sale, the chief accounting officer directly owned 3,824 shares of the company's stock, valued at $1,010,797.92. This represents a 9.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.20% of the company's stock.

Hedge Funds Weigh In On Adobe

Institutional investors have recently modified their holdings of the business. SWAN Capital LLC raised its stake in Adobe by 43.1% during the third quarter. SWAN Capital LLC now owns 103 shares of the software company's stock worth $36,000 after buying an additional 31 shares during the last quarter. Logan Capital Management Inc. lifted its holdings in Adobe by 0.3% during 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. Vista Capital Partners Inc. grew its position in shares of Adobe by 5.8% during the 2nd quarter. Vista Capital Partners Inc. now owns 624 shares of the software company's stock valued at $241,000 after acquiring an additional 34 shares during the period. Murphy & Mullick Capital Management Corp increased its holdings in Adobe by 5.1% in the 4th quarter. Murphy & Mullick Capital Management Corp now owns 827 shares of the software company's stock worth $289,000 after acquiring an additional 40 shares during the last quarter. Finally, Front Street Capital Management Inc. lifted its position in shares of Adobe by 8.2% during the second quarter. Front Street Capital Management Inc. now owns 541 shares of the software company's stock worth $209,000 after acquiring an additional 41 shares in the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source