FY2027 EPS Estimates for Adobe Raised by Erste Group Bank

Adobe Inc. (NASDAQ:ADBE) – Equities researchers at Erste Group Bank lifted their FY2027 earnings per share estimates for shares of Adobe in a note issued to investors on Tuesday, March 24th. Erste Group Bank analyst H. Engel now expects that the software company will post earnings per share of $21.76 for the year, up from their previous forecast of $21.50. The consensus estimate for Adobe’s current full-year earnings is $16.65 per share.

Several other brokerages have also recently weighed in on ADBE. Weiss Ratings cut shares of Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 6th. Sanford C. Bernstein set a $447.00 price objective on shares of Adobe and gave the company an “outperform” rating in a research report on Friday, March 13th. William Blair downgraded shares of Adobe from an “outperform” rating to a “market perform” rating in a research note on Thursday. BMO Capital Markets dropped their target price on shares of Adobe from $375.00 to $285.00 and set a “market perform” rating for the company in a report on Friday, March 13th. Finally, Barclays cut Adobe from an “overweight” rating to an “equal weight” rating and cut their target price for the stock from $335.00 to $275.00 in a research note on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, fourteen have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $343.88.

Adobe Stock Down 2.5%

Shares of NASDAQ ADBE opened at $234.84 on Friday. The firm’s fifty day moving average is $268.38 and its 200 day moving average is $315.73. Adobe has a 52 week low of $233.15 and a 52 week high of $422.95. The company has a quick ratio of 1.00, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. The company has a market cap of $94.92 billion, a price-to-earnings ratio of 13.68, a PEG ratio of 0.94 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, beating the consensus estimate of $5.87 by $0.19. The firm had revenue of $6.40 billion during the quarter, compared to the consensus estimate of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The business’s revenue was up 12.0% on a year-over-year basis. 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.

Insider Activity at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of Adobe 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 sale, 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 document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.20% of the company’s stock.

Institutional Trading of Adobe

Several institutional investors and hedge funds have recently bought and sold shares of ADBE. Norges Bank purchased a new position in shares of Adobe during the 4th quarter worth approximately $2,275,165,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of 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 purchasing an additional 1,952,994 shares during the period. Dodge & Cox lifted its stake in shares of Adobe by 8,006.6% in the 3rd quarter. Dodge & Cox now owns 1,593,506 shares of the software company’s stock valued at $562,109,000 after purchasing an additional 1,573,849 shares during the period. AQR Capital Management LLC boosted its position in shares of Adobe by 55.2% during the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock valued at $912,705,000 after purchasing an additional 920,353 shares in the last quarter. Finally, Amundi boosted its position in shares of Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company’s stock valued at $1,711,583,000 after purchasing an additional 742,646 shares in the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: AI revenue momentum: Adobe’s ARR reached ~$26.06B with management and analysts citing AI-driven product adoption as a key growth engine — a longer-term positive for recurring revenue and monetization. Read More.
• Positive Sentiment: Analyst model upgrades: Erste Group recently bumped its FY EPS estimates for Adobe (both near-term and FY2027 updates noted), signaling some analysts see improved earnings power despite the selloff. Read More.
• Positive Sentiment: Still some bullish coverage: Roughly half of analysts remain constructive and the consensus price target (~$310) implies meaningful upside from current levels, keeping a base of buy-side support. Read More.
• Neutral Sentiment: ETF/volatility flows: New 2x ETFs tied to Adobe increase the potential for short-term leveraged flows and higher volatility but don’t change fundamentals. Traders should expect amplified moves. Read More.
• Neutral Sentiment: Macro/software selloff context: Broader software/AI trade weakness is pressuring shares industry-wide; Adobe’s move is partly market-driven, not purely company-specific. Read More.
• Negative Sentiment: Analyst downgrade and price-target cuts: William Blair cut ADBE to Market Perform and several firms trimmed targets and tone, citing intensifying AI competition (Canva, Figma, AI-native tools). That downgrade is a direct catalyst for today’s selling pressure. Read More.
• Negative Sentiment: Regulatory / legal hit: Adobe agreed to pay about $150M to settle a subscription “dark pattern” lawsuit — a near-term cash expense and reputational headwind that investors view negatively. Read More.
• Negative Sentiment: Technical/market signal: Stock recently hit a 52-week low, reinforcing negative momentum and prompting some momentum-based selling. Read More.
• Negative Sentiment: Competitive & pricing pressure: Multiple write-ups warn that rising freemium/AI-native offerings and tougher pricing dynamics could compress near-term growth and margins — a core concern behind analyst caution. Read More.

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.