Research Analysts Offer Predictions for Adobe Q1 Earnings

Adobe Inc. (NASDAQ:ADBE) – Research analysts at Zacks Research upped their Q1 2026 earnings per share (EPS) estimates for Adobe in a research report issued on Wednesday, December 31st. Zacks Research analyst Team now forecasts that the software company will post earnings per share of $4.80 for the quarter, up from their previous forecast of $4.60. The consensus estimate for Adobe’s current full-year earnings is $16.65 per share. Zacks Research also issued estimates for Adobe’s FY2026 earnings at $19.00 EPS, Q1 2027 earnings at $4.99 EPS, Q2 2027 earnings at $5.59 EPS, Q3 2027 earnings at $5.93 EPS, Q4 2027 earnings at $4.56 EPS and FY2027 earnings at $21.07 EPS.

Several other brokerages have also recently issued reports on ADBE. DA Davidson reiterated a “buy” rating and set a $500.00 price target on shares of Adobe in a research report on Thursday, December 11th. JMP Securities reissued a “market perform” rating on shares of Adobe in a research report on Friday, September 12th. Weiss Ratings restated a “hold (c-)” rating on shares of Adobe in a research note on Monday, December 29th. BMO Capital Markets reduced their price target on Adobe from $405.00 to $400.00 and set an “outperform” rating on the stock in a research note on Monday, December 15th. Finally, TD Cowen decreased their price objective on Adobe from $420.00 to $400.00 and set a “hold” rating for the company in a report on Thursday, December 11th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $414.22.

Adobe Stock Up 1.3%

Shares of Adobe stock opened at $335.99 on Monday. The company’s fifty day simple moving average is $337.28 and its two-hundred day simple moving average is $350.64. Adobe has a 12-month low of $311.58 and a 12-month high of $465.70. The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The company has a market cap of $140.65 billion, a P/E ratio of 20.11, a PEG ratio of 1.31 and a beta of 1.53.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Brighton Jones LLC grew its position in Adobe by 2.1% during 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. Plancorp LLC boosted its stake in shares of Adobe by 73.1% during the 1st quarter. Plancorp LLC now owns 997 shares of the software company’s stock worth $382,000 after acquiring an additional 421 shares during the last quarter. Select Equity Group L.P. grew its position in shares of Adobe by 118.8% during the 1st quarter. Select Equity Group L.P. now owns 514,343 shares of the software company’s stock valued at $197,266,000 after acquiring an additional 279,275 shares during the period. Scientech Research LLC purchased a new stake in shares of Adobe in the 1st quarter worth $1,050,000. Finally, UniSuper Management Pty Ltd raised its holdings in Adobe by 4.4% in the 1st quarter. UniSuper Management Pty Ltd now owns 99,319 shares of the software company’s stock worth $38,092,000 after purchasing an additional 4,153 shares during the period. 81.79% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Adobe

In other Adobe news, CAO Jillian Forusz sold 149 shares of the company’s stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $337.88, for a total transaction of $50,344.12. Following the transaction, the chief accounting officer owned 3,426 shares in the company, valued at approximately $1,157,576.88. This represents a 4.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.16% of the stock is owned by company insiders.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Neutral Sentiment: Analysts published forward-looking estimates and previews ahead of Adobe’s upcoming quarter, offering mixed expectations but no clear catalyst to reverse the pullback. Research Analysts Offer Predictions for Adobe Q1 Earnings
• Neutral Sentiment: A sector-level, comparative piece reviews Adobe versus peers and highlights competitive pressures and valuation differences — useful context for investors assessing relative strength but not a direct trigger. In-Depth Analysis: Adobe Versus Competitors In Software Industry
• Negative Sentiment: Jefferies downgraded Adobe from Buy to Hold, saying Adobe’s AI “inflection” appears more limited versus peers — the downgrade is the primary near-term driver of selling pressure. Jefferies downgrades Adobe, upgrades IBM as AI reshapes 2026 software outlook
• Negative Sentiment: Coverage and op-eds are amplifying the downgrade impact — several pieces link the Jefferies call to a multi-day selloff and falling market cap, increasing negative sentiment among investors. Why Is Adobe Stock Getting Downgraded?
• Negative Sentiment: Opinion/short pieces argue Adobe looks risky relative to alternatives and suggest rotation into other names; these narratives can accelerate outflows from momentum-focused holders. 3 Reasons ADBE is Risky and 1 Stock to Buy Instead
• Negative Sentiment: Market commentary highlights a sharp start to 2026 for software names (including Adobe) with steep intraday declines, reinforcing sector weakness and risk-off positioning. Salesforce and Adobe Start 2026 With a 5% Plunge—Should Investors Buy or Bail?

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.