Adobe Inc. $ADBE Stock Position Raised by Victory Capital Management Inc.

Key Points

• Victory Capital Management increased its Adobe stake by 42.9% in the fourth quarter, owning 1,916,802 shares worth about $670.9 million at the end of the period.
• Adobe reported record Q2 results with revenue of $6.62 billion and EPS of $5.96, both above estimates, and it raised full-year guidance on stronger AI demand and subscription spending.
• Despite the earnings beat, the stock fell amid concerns over leadership uncertainty after CFO Dan Durn’s sudden exit and skepticism about how quickly Adobe can monetize its AI products.

Victory Capital Management Inc. lifted its holdings in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 42.9% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 1,916,802 shares of the software company's stock after buying an additional 575,392 shares during the period. Victory Capital Management Inc. owned 0.47% of Adobe worth $670,862,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the business. Vanguard Group Inc. grew its position in shares of Adobe by 0.8% during the 3rd 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 last quarter. State Street Corp grew its position 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 valued at $7,277,941,000 after buying an additional 352,448 shares during the last quarter. Geode Capital Management LLC grew its position 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 valued at $4,027,170,000 after buying an additional 414,049 shares during the last quarter. Norges Bank bought a new stake in shares of Adobe during the 4th quarter valued at about $2,275,165,000. Finally, Arrowstreet Capital Limited Partnership grew its position in shares of Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock valued at $1,981,448,000 after buying an additional 1,952,994 shares during the last quarter. Institutional investors own 81.79% of the company's stock.

Insider Activity

In other news, CAO Jillian Forusz sold 755 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the sale, the chief accounting officer owned 3,521 shares in the company, valued at $867,046.25. The trade was a 17.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Daniel Durn sold 1,336 shares of the business's stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the sale, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This represents a 3.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 77,091 shares of company stock worth $18,782,773 over the last 90 days. 0.20% of the stock is owned by company insiders.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q2 revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year revenue and earnings guidance. The company said AI-driven demand and stronger subscription spending supported results. Adobe Reports Record Q2 Results
• Positive Sentiment: Management highlighted accelerating adoption of Adobe’s AI tools, with AI-first annual recurring revenue topping $500 million, which supports the long-term growth case. Adobe Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
• Neutral Sentiment: Despite the beat, Adobe signaled a strategic shift toward freemium AI products and prioritizing user growth over immediate monetization, which adds uncertainty around near-term ARR growth. ADBE Q2 Earnings Call Centers on Freemium AI Push, Raised Outlook
• Negative Sentiment: Investors were rattled by the sudden departure of CFO Dan Durn, which adds to leadership uncertainty while Adobe is also in the middle of a CEO succession process. Adobe raises annual revenue forecast, CFO to exit
• Negative Sentiment: Wall Street reacted with multiple price-target cuts and downgrades, reflecting concerns that Adobe’s core growth may be decelerating and that AI monetization is still not proven. Leadership Exits, Decelerating Core Growth Cloud Adobe's Earnings Beat

Adobe Trading Down 6.8%

Shares of NASDAQ:ADBE opened at $204.02 on Friday. The company has a 50 day moving average of $244.54 and a 200-day moving average of $278.61. The firm has a market cap of $82.46 billion, a P/E ratio of 11.67, a P/E/G ratio of 0.85 and a beta of 1.42. Adobe Inc. has a twelve month low of $196.90 and a twelve month high of $405.00. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 64.99%. The business had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same period in the prior year, the business earned $5.06 earnings per share. The business's quarterly revenue was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, analysts anticipate that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its board has initiated a share buyback plan on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to reacquire up to 24.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on ADBE shares. Oppenheimer reaffirmed a "market perform" rating on shares of Adobe in a research report on Friday. HSBC set a $302.00 price objective on shares of Adobe in a research report on Friday, February 13th. Morgan Stanley decreased their target price on shares of Adobe from $425.00 to $365.00 and set an "equal weight" rating for the company in a research report on Friday, March 13th. Jefferies Financial Group decreased their target price on shares of Adobe from $290.00 to $230.00 and set a "hold" rating for the company in a research report on Friday. Finally, Barclays decreased their target price on shares of Adobe from $275.00 to $250.00 and set an "equal weight" rating for the company in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty have issued a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $278.16.

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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