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 $218.24 on Friday. 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 has a 12-month low of $218.09 and a 12-month high of $416.39. The stock has a 50-day moving average price of $245.29 and a 200 day moving average price of $279.13. The stock has a market capitalization of $88.21 billion, a P/E ratio of 12.71, a P/E/G ratio of 0.91 and a beta of 1.42.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.82 by $0.14. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The business had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same period last year, the firm posted $5.06 EPS. The company’s revenue 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 fiscal year.

Adobe announced that its Board of Directors has initiated a share repurchase plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the software company to repurchase up to 24.9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on ADBE shares. BTIG Research started coverage on shares of Adobe in a report on Monday, April 13th. They set a “neutral” rating for the company. Morgan Stanley cut their price objective on shares of Adobe from $425.00 to $365.00 and set an “equal weight” rating for the company in a report on Friday, March 13th. Wells Fargo & Company cut their price objective on shares of Adobe from $420.00 to $405.00 and set an “overweight” rating for the company in a report on Monday, March 9th. William Blair lowered shares of Adobe from an “outperform” rating to a “market perform” rating in a report on Thursday, March 26th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Adobe in a report on Wednesday, June 3rd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, sixteen have issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $322.62.

Insider Buying and Selling

In related news, CAO Jillian Forusz sold 755 shares of the firm’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the completion of the sale, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. This trade represents a 17.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Daniel Durn sold 1,336 shares of the firm’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 completion of the sale, the chief financial officer owned 42,833 shares of the company’s stock, valued at approximately $10,623,440.66. This represents a 3.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 77,091 shares of company stock worth $18,782,773 over the last three months. 0.20% of the stock is owned by insiders.

Adobe News Roundup

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

Institutional Trading of Adobe

A number of institutional investors have recently bought and sold shares of the stock. Schnieders Capital Management LLC. lifted its position in shares of Adobe by 7.8% during the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after purchasing an additional 190 shares during the last quarter. Brighton Jones LLC lifted its position in shares of Adobe by 2.1% during the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock worth $3,588,000 after purchasing an additional 167 shares during the last quarter. Sivia Capital Partners LLC lifted its position in shares of Adobe by 25.5% during the second quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after purchasing an additional 486 shares during the last quarter. Transamerica Financial Advisors LLC lifted its position in shares of Adobe by 30.7% during the fourth quarter. Transamerica Financial Advisors LLC now owns 375 shares of the software company’s stock worth $131,000 after purchasing an additional 88 shares during the last quarter. Finally, Osterweis Capital Management Inc. lifted its position in shares of Adobe by 4,520.0% during the second quarter. Osterweis Capital Management Inc. now owns 231 shares of the software company’s stock worth $89,000 after purchasing an additional 226 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors.

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.