Adobe Inc. (NASDAQ:ADBE) Receives Average Rating of “Hold” from Brokerages

Adobe Inc. (NASDAQ:ADBE) has been given a consensus rating of “Hold” by the twenty-six ratings firms that are presently covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a sell rating, eleven have given a hold rating, ten have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $401.1250.

A number of equities analysts recently commented on ADBE shares. Morgan Stanley dropped their price objective on shares of Adobe from $450.00 to $425.00 and set an “equal weight” rating for the company in a research note on Thursday, December 11th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $430.00 price target on shares of Adobe in a research report on Thursday, December 11th. Jefferies Financial Group cut Adobe from a “buy” rating to a “hold” rating and cut their price target for the company from $500.00 to $400.00 in a research note on Monday, January 5th. Wolfe Research dropped their price objective on Adobe from $450.00 to $440.00 and set an “outperform” rating for the company in a report on Thursday, December 11th. Finally, Robert W. Baird set a $350.00 target price on Adobe in a report on Wednesday, January 14th.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported a recent quarterly beat, solid margins and set FY26 guidance that implies continued earnings strength, which supports valuation and investor buying interest.
• Positive Sentiment: Adobe deepened its enterprise generative-AI partnership with Cognizant — a commercial push that helps monetize AI across large customers and supports revenue growth expectations. Adobe Deepens Cognizant Alliance To Push Enterprise Generative AI Adoption
• Positive Sentiment: Multiple analysts and outlets are calling software stocks (including Adobe) attractive after the sell-off — several pieces argue ADBE looks undervalued or “too cheap to ignore,” encouraging value-oriented buying. Adobe: Too Cheap To Ignore, AI Fears Overblown
• Positive Sentiment: Market commentary suggests heavy short interest across software names could set up a near‑term squeeze if prices stabilize; that dynamics can amplify rallies in beaten-down leaders like Adobe. Software Stocks Look Primed for a Short Squeeze
• Neutral Sentiment: Short‑interest data reported for Adobe in mid‑February shows anomalous/zero figures and inconsistent prints across feeds, so current short-interest signals are unclear and shouldn’t be over‑interpreted.
• Neutral Sentiment: PR and industry programs such as Adobe’s Creative Collective aim to bolster brand/industry positioning but are unlikely to move the stock materially in the near term. Adobe’s Creative Collective assembles multidisciplinary experts to analyse and advise on the industry’s big changes
• Negative Sentiment: A class-action suit alleges Adobe used pirated books to train AI models — this introduces legal and PR risk that could result in costs, injunctions or investor concern if litigation escalates. Class Suit Accuses Adobe of Using Pirated Books to Train AI Models
• Negative Sentiment: Short-term price weakness was highlighted in recent market coverage (ADBE fell more steeply than the broader market on the latest close), reflecting continued investor caution around AI disruption and the broader tech sell-off. Adobe Systems (ADBE) Falls More Steeply Than Broader Market: What Investors Need to Know

Insider Transactions at Adobe

In other Adobe news, CFO Daniel Durn sold 1,646 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares of the company’s stock, valued at $12,382,225.75. This trade represents a 3.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.16% of the stock is owned by insiders.

Institutional Investors Weigh In On Adobe

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in shares of Adobe by 0.8% during the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company’s stock valued at $14,593,054,000 after purchasing an additional 344,816 shares in the last quarter. State Street Corp raised its holdings in Adobe by 1.7% in 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 boosted its position in Adobe by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock worth $4,027,170,000 after buying an additional 414,049 shares during the period. Norges Bank bought a new stake in Adobe during the 4th quarter worth approximately $2,275,165,000. Finally, Arrowstreet Capital Limited Partnership increased its position in Adobe by 53.3% in 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 acquiring an additional 1,952,994 shares during the period. Institutional investors and hedge funds own 81.79% of the company’s stock.

Adobe Stock Up 2.1%

Shares of ADBE opened at $262.50 on Friday. The firm has a market cap of $107.76 billion, a P/E ratio of 15.71, a price-to-earnings-growth ratio of 1.01 and a beta of 1.51. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. Adobe has a 52 week low of $251.10 and a 52 week high of $465.70. The firm’s 50-day simple moving average is $319.53 and its 200 day simple moving average is $335.84.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings data on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.40 by $0.10. The firm had revenue of $6.19 billion during the quarter, compared to the consensus estimate of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The business’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same period last year, the business posted $4.81 earnings per share. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. On average, analysts forecast that Adobe will post 16.65 earnings per share for the current year.

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.