Mizuho Cuts Adobe (NASDAQ:ADBE) Price Target to $245.00

Key Points

• Mizuho lowered its price target on Adobe from $270 to $245 and kept a neutral rating, implying about 12% upside from the prior close.
• Adobe beat quarterly expectations with Q2 EPS of $5.96 and revenue of $6.62 billion, while also raising FY2026 and Q3 guidance above Wall Street estimates.
• Analyst sentiment remains mixed, with several firms recently downgrading the stock even as others reiterated or upgraded ratings; the broader consensus is currently “Hold.”

Adobe (NASDAQ:ADBE - Get Free Report) had its price objective decreased by investment analysts at Mizuho from $270.00 to $245.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the software company's stock. Mizuho's target price indicates a potential upside of 12.26% from the stock's previous close.

ADBE has been the subject of a number of other reports. Wolfe Research downgraded Adobe from an "outperform" rating to a "peer perform" rating in a research report on Friday. KeyCorp restated an "underweight" rating on shares of Adobe in a research report on Friday. Dbs Bank downgraded Adobe from a "moderate buy" rating to a "hold" rating in a report on Tuesday, May 19th. UBS Group raised Adobe from a "neutral" rating to a "buy" rating in a research note on Friday. Finally, Barclays set a $250.00 price objective on Adobe in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eighteen have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, Adobe presently has a consensus rating of "Hold" and a consensus price target of $306.85.

Adobe Stock Performance

Shares of ADBE stock opened at $218.24 on Friday. The business's 50-day moving average price is $245.29 and its 200-day moving average price is $279.13. Adobe has a 12 month low of $218.09 and a 12 month high of $416.39. The firm has a market capitalization of $88.21 billion, a price-to-earnings ratio of 12.71, a PEG ratio of 0.91 and a beta of 1.42. 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 announced its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating analysts' consensus estimates of $5.82 by $0.14. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The firm had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same period last year, the firm posted $5.06 earnings per share. The business's revenue for the quarter 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 will post 19.14 EPS for the current year.

Adobe declared that its Board of Directors has initiated a stock buyback plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Adobe

In related news, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the transaction, the chief financial officer owned 42,833 shares of the company's stock, valued at $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the transaction, the chief executive officer directly owned 359,538 shares in the company, valued at approximately $87,561,884.52. The trade was a 17.26% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 77,091 shares of company stock valued at $18,782,773 over the last 90 days. Insiders own 0.20% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Brighton Jones LLC raised its stake in shares of Adobe by 2.1% in the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock valued at $3,588,000 after buying an additional 167 shares during the period. Sivia Capital Partners LLC raised its stake in shares of Adobe by 25.5% in the second quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company's stock valued at $926,000 after buying an additional 486 shares during the period. United Bank raised its stake in shares of Adobe by 12.8% in the second quarter. United Bank now owns 3,773 shares of the software company's stock valued at $1,460,000 after buying an additional 428 shares during the period. Schnieders Capital Management LLC. raised its stake in shares of Adobe by 7.8% in the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company's stock valued at $1,017,000 after buying an additional 190 shares during the period. Finally, Gamco Investors INC. ET AL raised its stake in shares of Adobe by 190.6% in the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company's stock valued at $1,069,000 after buying an additional 1,813 shares during the period. Hedge funds and other institutional investors own 81.79% of the company's stock.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe posted record second-quarter revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year FY2026 revenue and earnings guidance. Management said AI tool adoption and higher subscription spending are supporting results. Adobe Reports Record Q2 Results
• Positive Sentiment: The company’s updated outlook topped Wall Street estimates for both Q3 and FY2026, suggesting Adobe still sees room for stronger revenue and profit growth even after a challenging year. Reuters: Adobe raises annual revenue forecast, CFO to exit
• Neutral Sentiment: Adobe is shifting toward a freemium AI strategy and pausing price hikes for now, aiming to boost user growth and engagement in the near term, but this could delay ARR expansion. Adobe pauses price hikes for short-term AI push
• Negative Sentiment: Shares are being weighed down by the sudden departure of CFO Dan Durn, adding to investor concerns about leadership stability as Adobe is also navigating CEO succession plans. Adobe Stock Drops As CFO Dan Durn Resigns
• Negative Sentiment: Broker reaction was cautious after earnings, with Stifel downgrading Adobe and cutting its price target, reflecting skepticism that the AI push will quickly translate into sustained growth. Stifel Downgrades Adobe Stock

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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