KeyCorp Forecasts Adobe's Q1 Earnings (NASDAQ:ADBE)

Key Points

• KeyCorp expects Adobe to earn $5.60 per share in Q1 2027 and maintains an “Underweight” rating with a $195 price target. Its estimates are $5.60, $5.76 and $5.69 EPS for Q2 through Q4 2027, respectively.
• Adobe’s latest results modestly exceeded expectations, with $6.13 EPS and $6.76 billion in revenue, up 12.9% year over year. The company also raised fiscal 2026 guidance to $24.45–$24.50 EPS.
• Analyst sentiment remains mixed: Adobe has a consensus “Hold” rating and an average price target of $282.68, while investors continue weighing growing AI revenue against monetization and competitive risks.

Adobe Inc. (NASDAQ:ADBE - Free Report) - Investment analysts at KeyCorp issued their Q1 2027 EPS estimates for shares of Adobe in a report released on Thursday, September 10th. KeyCorp analyst J. Ader forecasts that the software company will post earnings per share of $5.60 for the quarter. KeyCorp has a "Underweight" rating and a $195.00 price objective on the stock. The consensus estimate for Adobe's current full-year earnings is $19.83 per share. KeyCorp also issued estimates for Adobe's Q2 2027 earnings at $5.60 EPS, Q3 2027 earnings at $5.76 EPS and Q4 2027 earnings at $5.69 EPS.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.08 by $0.05. Adobe had a net margin of 28.05% and a return on equity of 65.65%. The company had revenue of $6.76 billion for the quarter, compared to analyst estimates of $6.69 billion. During the same period in the prior year, the business earned $5.31 earnings per share. Adobe's quarterly revenue was up 12.9% on a year-over-year basis. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS.

A number of other analysts have also commented on ADBE. Evercore set a $250.00 price objective on Adobe in a research report on Friday. Robert W. Baird increased their price target on Adobe from $230.00 to $250.00 and gave the company a "neutral" rating in a research note on Friday. Piper Sandler boosted their price target on shares of Adobe from $240.00 to $250.00 and gave the company a "neutral" rating in a report on Friday. CLSA initiated coverage on shares of Adobe in a research note on Monday, July 20th. They issued an "outperform" rating and a $300.00 price target on the stock. Finally, Wolfe Research downgraded Adobe from an "outperform" rating to a "peer perform" rating in a report on Friday, June 12th. Seven analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $282.68.

Adobe Stock Up 5.3%

NASDAQ ADBE opened at $265.60 on Tuesday. The stock has a market capitalization of $105.58 billion, a P/E ratio of 14.82, a price-to-earnings-growth ratio of 0.88 and a beta of 1.42. Adobe has a 52 week low of $190.12 and a 52 week high of $370.86. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.75 and a current ratio of 0.77. The stock has a fifty day moving average of $254.49 and a 200-day moving average of $245.70.

Insider Activity at Adobe

In related news, Director David Ricks acquired 10,000 shares of the company's stock in a transaction dated Thursday, June 25th. The shares were bought at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the purchase, the director directly owned 17,655 shares in the company, valued at approximately $3,434,074.05. This trade represents a 130.63% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Jillian Forusz sold 416 shares of the stock in a transaction that occurred 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 completion of the sale, the chief accounting officer directly owned 3,824 shares of the company's stock, valued at approximately $1,010,797.92. The trade was a 9.81% decrease in their position. The SEC filing for this sale provides additional information. 0.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. TrustBank bought a new stake in Adobe in the 4th quarter valued at about $28,000. Lloyd Advisory Services LLC. acquired a new stake in shares of Adobe in the fourth quarter valued at approximately $31,000. Sankala Group LLC bought a new stake in shares of Adobe in the fourth quarter valued at approximately $31,000. Hyposwiss Advisors SA bought a new stake in shares of Adobe in the fourth quarter valued at approximately $35,000. Finally, Abound Financial LLC acquired a new stake in Adobe during the fourth quarter worth approximately $37,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Software-sector rotation supported the stock. Investors moved capital out of semiconductor and AI-hardware companies after comments suggesting that the pace of frontier-AI development could slow. That shift eased concerns that generative AI would quickly make incumbent software vendors obsolete and helped lift Adobe and other enterprise-software stocks. AI Stocks Fell, but Workday and Adobe Jumped
• Positive Sentiment: AI-related revenue is beginning to show up in results. Adobe reported fiscal Q3 revenue of $6.76 billion, up 13% year over year, and non-GAAP earnings per share of $6.13, both ahead of analyst expectations. AI-first annualized recurring revenue reportedly exceeded $650 million and grew more than 150%, giving investors evidence that Adobe’s AI investments are contributing to sales. Adobe’s AI Bet Is Finally Showing Up In Revenue
• Positive Sentiment: Valuation and analyst support added to the rebound. DA Davidson raised its price target from $250 to $290 and maintained a buy rating. Several bullish commentaries argue that Adobe’s depressed valuation already reflects severe AI-disruption risks, while management’s raised fiscal 2026 guidance helped reduce worst-case concerns. Is Adobe Stock a Buy Right Now in September?
• Neutral Sentiment: Adobe expanded its free AI offering. Student Spaces in Acrobat is now globally available at no cost and includes AI-powered flashcards, citations, summaries, note digitization and interview preparation. The launch may improve adoption and user engagement, but its near-term revenue impact is uncertain. Student Spaces in Acrobat
• Negative Sentiment: Monetization concerns continue to limit investor conviction. Analysts remain divided because freemium adoption and user growth have not yet clearly translated into enough new annual recurring revenue. Adobe also deferred detailed 2027 guidance, while competition and the decision to reduce upfront paywalls could pressure near-term revenue and margins. Analysts Are Punting Their Calls Into the Next Quarter

About Adobe

Adobe Inc NASDAQ: ADBE develops software and services used for digital content creation, document management and digital experiences. The company serves creative professionals, marketers, enterprises, educators and consumers worldwide through subscription-based and cloud-enabled products.

Adobe's Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro and After Effects, along with related tools for photography, graphic design, video production and web development.

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