Adobe (NASDAQ:ADBE) Issues FY 2026 Earnings Guidance

Adobe (NASDAQ:ADBE) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 24.350-24.450 for the period, compared to the consensus EPS estimate of 22.670. The company issued revenue guidance of $26.5 billion-$26.6 billion, compared to the consensus revenue estimate of $26.1 billion. Adobe also updated its Q3 2026 guidance to 6.050-6.100 EPS.

Adobe Stock Performance

NASDAQ ADBE opened at $204.02 on Friday. The stock has a market capitalization of $82.46 billion, a price-to-earnings ratio of 11.67, a PEG ratio of 0.85 and a beta of 1.42. Adobe 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. The stock has a 50-day moving average of $244.54 and a 200 day moving average of $278.61.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. The company had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. Adobe had a return on equity of 64.99% and a net margin of 28.69%.Adobe’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Sell-side analysts anticipate that Adobe will post 19.14 EPS for the current fiscal year.

Adobe announced that its board has approved a stock buyback program on Tuesday, April 21st that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to repurchase up to 24.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

Several equities research analysts have commented on the company. BTIG Research assumed coverage on Adobe in a research note on Monday, April 13th. They set a “neutral” rating for the company. BMO Capital Markets cut their price objective on Adobe from $285.00 to $230.00 and set a “market perform” rating for the company in a research note on Friday. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of Adobe in a research note on Friday, March 13th. Piper Sandler cut their price objective on Adobe from $280.00 to $240.00 and set a “neutral” rating for the company in a research note on Friday. Finally, Citizens Jmp reiterated a “market perform” rating on shares of Adobe in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twenty have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $278.16.

Insiders Place Their Bets

In other Adobe news, CAO Jillian Forusz sold 755 shares of the company’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total transaction of $185,918.75. Following the transaction, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. This represents a 17.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Daniel Durn sold 1,336 shares of the company’s stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total value of $331,354.72. Following the transaction, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This trade represents a 3.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 77,091 shares of company stock worth $18,782,773 over the last ninety days. Corporate insiders own 0.20% of the company’s stock.

Adobe News Summary

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

Institutional Trading of Adobe

Hedge funds have recently modified their holdings of the stock. Measured Wealth Private Client Group LLC acquired a new stake in shares of Adobe in the third quarter valued at $26,000. Swiss RE Ltd. acquired a new stake in shares of Adobe in the fourth quarter valued at $32,000. Vermillion & White Wealth Management Group LLC raised its stake in shares of Adobe by 77.8% in the fourth quarter. Vermillion & White Wealth Management Group LLC now owns 96 shares of the software company’s stock valued at $34,000 after acquiring an additional 42 shares in the last quarter. SWAN Capital LLC raised its stake in shares of Adobe by 43.1% in the third quarter. SWAN Capital LLC now owns 103 shares of the software company’s stock valued at $36,000 after acquiring an additional 31 shares in the last quarter. Finally, Sfam LLC acquired a new stake in shares of Adobe in the fourth quarter valued at $45,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.

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.