Dodge & Cox Raises Stock Position in Adobe Inc. $ADBE

Key Points

• Dodge & Cox increased its stake in Adobe by 8,006.6% in Q3 to 1,593,506 shares—about 0.38% of the company—worth roughly $562.1 million.
• Adobe delivered a record Q1, beating expectations with $6.06 EPS (vs. $5.87 est.) and $6.40B revenue (vs. $6.28B est.), and issued FY26 guidance of $23.30–$23.50 EPS while highlighting rapid AI‑first ARR growth.
• Near‑term risks include a roughly $150M DOJ settlement over subscription practices and CEO Shantanu Narayen’s planned transition once a successor is named, which has spurred analyst downgrades and market uncertainty.

Dodge & Cox boosted its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 8,006.6% in the third quarter, according to its most recent disclosure with the SEC. The firm owned 1,593,506 shares of the software company's stock after acquiring an additional 1,573,849 shares during the period. Dodge & Cox owned about 0.38% of Adobe worth $562,109,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of ADBE. LSV Asset Management increased its stake in shares of Adobe by 350.0% during the second quarter. LSV Asset Management now owns 72 shares of the software company's stock worth $28,000 after purchasing an additional 56 shares in the last quarter. Caitlin John LLC purchased a new position in Adobe in the 3rd quarter valued at about $28,000. Horizon Financial Services LLC boosted its holdings in Adobe by 4,000.0% in the 2nd quarter. Horizon Financial Services LLC now owns 82 shares of the software company's stock worth $32,000 after buying an additional 80 shares during the last quarter. Total Investment Management Inc. acquired a new stake in Adobe in the 2nd quarter worth about $35,000. Finally, Heartwood Wealth Advisors LLC purchased a new stake in Adobe during the 3rd quarter worth approximately $35,000. Institutional investors and hedge funds own 81.79% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Adobe in a research report on Friday. Royal Bank Of Canada reiterated an "outperform" rating and set a $430.00 price target on shares of Adobe in a research report on Monday, March 9th. Stifel Nicolaus reduced their price objective on Adobe from $450.00 to $400.00 and set a "buy" rating for the company in a research note on Friday. Barclays restated an "equal weight" rating and issued a $275.00 price objective (down from $335.00) on shares of Adobe in a report on Friday. Finally, Wells Fargo & Company dropped their target price on shares of Adobe from $420.00 to $405.00 and set an "overweight" rating for the company in a report on Monday, March 9th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $347.85.

Insider Activity at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the business'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 transaction, the chief financial officer owned 41,995 shares of the company's stock, valued at approximately $12,382,225.75. The trade was a 3.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.20% of the stock is currently owned by corporate insiders.

Adobe Price Performance

NASDAQ:ADBE opened at $249.32 on Friday. Adobe Inc. has a one year low of $244.28 and a one year high of $422.95. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. The stock has a market cap of $102.35 billion, a PE ratio of 14.52, a P/E/G ratio of 1.06 and a beta of 1.53. The stock has a 50 day moving average price of $283.88 and a 200 day moving average price of $323.22.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share 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 analyst estimates of $6.28 billion. Adobe had a return on equity of 64.23% and a net margin of 29.48%.The firm's revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the company 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. Equities research analysts expect that Adobe Inc. will post 16.65 EPS for the current fiscal year.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Record Q1 results and AI traction — Adobe posted above‑consensus Q1 revenue and EPS and highlighted rapid AI-first ARR growth; management framed the quarter as an AI‑led acceleration, which supports the company’s long‑term revenue mix and margins. Adobe Delivers Record Q1 Results
• Neutral Sentiment: Guidance shows upside but raises questions — Adobe’s FY26 EPS range and Q2 outlook exceeded consensus, yet investors parsed the details (ARR cadence, freemium strategy) for sustainability before rewarding the stock. Adobe Q1 earnings & guidance
• Neutral Sentiment: Short‑interest figures reported inconsistently — publicly posted short data showed anomalous/zero values (NaN/0), so current short‑squeeze risk or bearish positioning is unclear.
• Negative Sentiment: DOJ settlement adds immediate cost and reputational overhang — Adobe agreed to a $150M package (roughly $75M cash + $75M in free services) to resolve claims about hard‑to‑cancel subscriptions, creating a headline liability and consumer‑facing remediation burden. Adobe agrees to pay $150 million to resolve alleged violations
• Negative Sentiment: CEO succession uncertainty — Shantanu Narayen announced he will step down once a successor is named (he will remain board chair), creating near‑term leadership uncertainty at a critical time for Adobe’s AI strategy and execution. Shantanu Narayen Announces Decision to Transition as Adobe's CEO
• Negative Sentiment: Analyst downgrades and lower targets amplify selling — Several firms cut price targets or moved to neutral/equal‑weight, citing CEO transition and mixed ARR trends, which pressured sentiment and triggered further mark‑downs. These Analysts Cut Their Forecasts On Adobe Following Q1 Earnings

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.

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