California State Teachers Retirement System Raises Holdings in Adobe Inc. $ADBE

Key Points

• California State Teachers Retirement System dramatically increased its Adobe stake by 125.0 million shares during the second quarter, bringing its reported holdings to 125.7 million shares valued at approximately $25.8 billion. Institutional investors and hedge funds collectively own 81.79% of Adobe.
• Adobe reported quarterly revenue of $6.62 billion, up 12.7% year over year, and earnings of $5.96 per share, exceeding analyst expectations. AI-first annual recurring revenue more than tripled to above $500 million, supporting optimism about future growth.
• Analyst sentiment remains mixed: RBC raised its price target to $315 and maintained an Outperform rating, while Goldman Sachs lowered its target to $190 with a Sell rating. Overall, Adobe carries a consensus Hold rating and an average price target of $278.72 amid concerns about AI competition, leadership changes and recent stock declines.

California State Teachers Retirement System grew its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 19,873.5% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 125,658,193 shares of the software company's stock after acquiring an additional 125,029,070 shares during the quarter. California State Teachers Retirement System owned about 31.61% of Adobe worth $25,762,443,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in shares of Adobe during the second quarter valued at $8,437,821,000. Norges Bank purchased a new position in Adobe in the 4th quarter worth $2,275,165,000. Primecap Management Co. CA acquired a new stake in Adobe during the 2nd quarter worth about $1,071,668,000. Bank of New York Mellon Corp acquired a new stake in Adobe during the 2nd quarter worth about $954,468,000. Finally, Deutsche Bank AG purchased a new stake in Adobe during the 2nd quarter valued at about $750,203,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Adobe Price Performance

NASDAQ:ADBE opened at $266.51 on Tuesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. The company has a 50 day moving average price of $250.39 and a 200-day moving average price of $245.73. Adobe Inc. has a 1-year low of $190.12 and a 1-year high of $370.86. The firm has a market cap of $105.94 billion, a price-to-earnings ratio of 15.25, a price-to-earnings-growth ratio of 0.93 and a beta of 1.42.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly 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 65.11%. The company had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same quarter last year, the business earned $5.06 earnings per share. The firm's 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. Equities research analysts forecast that Adobe Inc. will post 19.81 EPS for the current year.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: RBC Capital maintained an Outperform rating and raised its price target to $315, citing expectations for an in-line third quarter and the importance of renewed annual recurring-revenue growth. The target implies meaningful upside from recent trading levels. RBC sets $315 target article
• Positive Sentiment: Adobe’s recent rally is being supported by strong fundamentals: second-quarter revenue reached roughly $6.6 billion, up 12.7% year over year, while AI-first ARR more than tripled to above $500 million. Investors will look for further evidence of monetization in Thursday’s results. Adobe Q3 earnings preview
• Positive Sentiment: Bank of America reportedly views Adobe more favorably than Oracle ahead of earnings, adding a positive relative-investment case for the software company. BofA Adobe versus Oracle analysis
• Neutral Sentiment: Adobe named Anil Chakravarthy president and CEO effective December 1, while longtime CEO Shantanu Narayen becomes executive chair. The transition could sharpen the company’s AI strategy, but investors will closely evaluate execution under the new leadership. Adobe CEO succession article
• Negative Sentiment: Analyst sentiment remains divided ahead of earnings. Several recent calls are Holds or Sells, and concerns include Adobe’s roughly 20% year-to-date decline, an open CFO search and uncertainty over whether AI growth can offset competitive pressure. Adobe analyst earnings preview
• Negative Sentiment: Retail investors and hedge funds appear sharply split, while reported insider activity shows six open-market sales and no purchases over the past six months. That divergence may reinforce concerns about near-term confidence in the stock. Adobe investor sentiment article

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. The Goldman Sachs Group reduced their price objective on Adobe from $220.00 to $190.00 and set a "sell" rating for the company in a research note on Friday, June 12th. Jefferies Financial Group increased their price target on shares of Adobe from $230.00 to $285.00 and gave the stock a "hold" rating in a report on Sunday, August 30th. Oppenheimer reissued a "market perform" rating on shares of Adobe in a research report on Friday, June 12th. JPMorgan Chase & Co. decreased their price objective on shares of Adobe from $420.00 to $340.00 and set an "overweight" rating for the company in a research note on Friday, June 12th. Finally, Royal Bank Of Canada increased their price objective on shares of Adobe from $285.00 to $315.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 2nd. Seven investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $278.72.

Insider Buying and Selling

In other Adobe news, CAO Jillian Forusz sold 416 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the transaction, the chief accounting officer owned 3,824 shares in the company, valued at approximately $1,010,797.92. This represents a 9.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director David Ricks acquired 10,000 shares of the company's stock in a transaction on Thursday, June 25th. The stock was acquired at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the acquisition, the director owned 17,655 shares of the company's stock, valued at $3,434,074.05. This trade represents a 130.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.20% of the company's stock.

Adobe 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.

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