Adobe Inc. $ADBE is Arrowstreet Capital Limited Partnership's 7th Largest Position

Key Points

• Arrowstreet Capital boosted its Adobe stake by 53.3% to 5,617,145 shares, making ADBE its 7th-largest holding and representing about 1.34% of Adobe (~$1.98 billion) of the firm's portfolio.
• Adobe beat Q1 estimates (EPS $6.06 vs. $5.87; revenue $6.40B vs. $6.28B), raised FY‑2026 EPS guidance to 23.30–23.50, and highlighted strong AI-driven ARR growth, though the consensus analyst rating remains a "Hold" with a $375.96 target.
• CEO Shantanu Narayen’s announced transition and cautious near‑term profit commentary, plus several analyst target cuts, have injected leadership uncertainty and pressured the stock (recently trading near $269.78, well off its $422.95 52‑week high).

Arrowstreet Capital Limited Partnership boosted its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 53.3% during the third quarter, according to its most recent 13F filing with the SEC. The firm owned 5,617,145 shares of the software company's stock after acquiring an additional 1,952,994 shares during the period. Adobe accounts for approximately 1.2% of Arrowstreet Capital Limited Partnership's portfolio, making the stock its 7th largest holding. Arrowstreet Capital Limited Partnership owned approximately 1.34% of Adobe worth $1,981,448,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of the company. Riverbend Wealth Management LLC boosted its position 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 valued at $588,000 after acquiring an additional 29 shares during the last quarter. Intellus Advisors LLC grew 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 worth $720,000 after purchasing an additional 30 shares during the last quarter. Beacon Financial Advisory LLC increased its position in Adobe by 5.5% during the 3rd quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company's stock valued at $204,000 after purchasing an additional 30 shares during the period. MCF Advisors LLC raised its position in shares of Adobe by 20.8% in the 3rd quarter. MCF Advisors LLC now owns 174 shares of the software company's stock worth $61,000 after acquiring an additional 30 shares in the last quarter. Finally, Dakota Community Bank & Trust NA lifted its position in Adobe by 12.8% during the 2nd quarter. Dakota Community Bank & Trust NA now owns 274 shares of the software company's stock valued at $106,000 after acquiring an additional 31 shares during the period. 81.79% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Piper Sandler restated a "neutral" rating on shares of Adobe in a report on Wednesday, March 4th. TD Cowen cut their target price on shares of Adobe from $400.00 to $325.00 and set a "hold" rating for the company in a research note on Tuesday. Oppenheimer lowered Adobe from an "outperform" rating to a "market perform" rating in a research note on Tuesday, January 13th. Barclays reduced their target price on Adobe from $415.00 to $335.00 and set an "overweight" rating on the stock in a research note on Wednesday, March 4th. Finally, Wolfe Research lowered their price objective on shares of Adobe from $450.00 to $440.00 and set an "outperform" rating for the company in a research note on Thursday, December 11th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eleven have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, Adobe has an average rating of "Hold" and a consensus target price of $375.96.

Adobe Stock Down 1.4%

Shares of ADBE opened at $269.78 on Friday. Adobe Inc. has a 52 week low of $244.28 and a 52 week high of $422.95. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.53. The stock's 50-day moving average price is $285.56 and its 200-day moving average price is $324.01. The company has a market capitalization of $110.74 billion, a price-to-earnings ratio of 16.14, a PEG ratio of 1.08 and a beta of 1.53.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.87 by $0.19. The company had revenue of $6.40 billion for the quarter, compared to the consensus estimate of $6.28 billion. Adobe had a return on equity of 61.28% and a net margin of 30.00%.Adobe's revenue for the quarter was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $5.08 earnings per share. 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 predict that Adobe Inc. will post 16.65 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Daniel Durn sold 1,646 shares of the company'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 owned 41,995 shares of the company's stock, valued at approximately $12,382,225.75. This represents a 3.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.20% of the company's stock.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Beat on Q1 EPS and revenue — Adobe reported stronger-than-expected EPS and revenue for the quarter, confirming solid top-line growth. Adobe Systems (ADBE) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Raised FY and Q2 guidance — Adobe gave FY‑2026 EPS and revenue targets above consensus and provided Q2 EPS guidance ahead of street estimates, signaling management sees medium‑term strength. Adobe earnings / guidance details
• Neutral Sentiment: AI-driven metrics strong but early — Adobe said AI-first ARR more than tripled and subscription revenue rose, supporting strategic progress even if monetization timing is uncertain. Adobe Delivers Record Q1 Results
• Neutral Sentiment: Healthy cash flow and margins — operating cash flow and gross profit improved, which cushions near-term concerns and supports valuation over time. QuiverQuant Q1 financials summary
• Negative Sentiment: CEO Shantanu Narayen to transition — Narayen’s decision to step down once a successor is named injected leadership uncertainty; investors worry about execution through a management change at a critical AI inflection. Shantanu Narayen Announces Decision to Transition
• Negative Sentiment: Muted near-term profit signal spooks investors — despite beats, commentary and some forward commentary were interpreted as conservative on near-term profit acceleration from AI, prompting the sell-off. Adobe Plunges To 7 Year Low On CEO Resignation, Muted Forecast
• Negative Sentiment: Market skepticism and analyst moves — Adobe’s stock has underperformed YTD, some firms have trimmed targets or reiterated caution, amplifying weakness after the print. 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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