Adobe (NASDAQ:ADBE) Updates FY 2026 Earnings Guidance

Adobe (NASDAQ:ADBE) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 23.300-23.500 for the period, compared to the consensus estimate of 21.680. The company issued revenue guidance of $25.9 billion-$26.1 billion, compared to the consensus revenue estimate of $26.0 billion. Adobe also updated its Q2 2026 guidance to 5.800-5.850 EPS.

Adobe Stock Down 1.4%

NASDAQ:ADBE opened at $269.78 on Friday. The company’s 50 day moving average is $285.56 and its two-hundred day moving average is $324.01. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.53. The company has a market cap of $110.74 billion, a PE ratio of 16.14, a P/E/G ratio of 1.08 and a beta of 1.53. Adobe has a twelve month low of $244.28 and a twelve month high of $422.95.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, topping the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The business had revenue of $6.40 billion during the quarter, compared to the consensus estimate of $6.28 billion. During the same quarter in the prior year, the firm earned $5.08 earnings per share. The business’s quarterly revenue was up 12.0% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Analysts anticipate that Adobe will post 16.65 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on ADBE shares. Wells Fargo & Company dropped their price objective on shares of Adobe from $420.00 to $405.00 and set an “overweight” rating on the stock in a research note on Monday. Citigroup cut their price objective on Adobe from $387.00 to $315.00 and set a “neutral” rating on the stock in a research note on Friday, March 6th. The Goldman Sachs Group started coverage on shares of Adobe in a research note on Monday, January 12th. They issued a “sell” rating and a $290.00 price target on the stock. UBS Group dropped their target price on shares of Adobe from $375.00 to $340.00 and set a “neutral” rating for the company in a report on Monday, January 26th. Finally, DA Davidson reiterated a “buy” rating and issued a $500.00 price target on shares of Adobe in a research note on Thursday, December 11th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, eleven have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Adobe presently has a consensus rating of “Hold” and a consensus target price of $372.04.

Insider Activity 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 transaction of $485,323.10. Following the completion of the sale, the chief financial officer directly owned 41,995 shares in the company, valued at approximately $12,382,225.75. This trade represents a 3.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.20% of the company’s stock.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Q1 beat and healthy top-line growth — Revenue rose ~12% to $6.40B and non-GAAP EPS of $6.06 topped estimates, showing continued subscription and enterprise strength. Read More.
• Positive Sentiment: Strong AI and subscription trends — Adobe said AI-first ARR more than tripled year-over-year and subscription revenue grew ~13%, evidence management sees early traction for AI features. Read More.
• Positive Sentiment: Outlook above some expectations — Fiscal FY26 and Q2 EPS guidance was raised into ranges that sit above prior consensus, signaling management expects continuing growth. Read More.
• Neutral Sentiment: Planned, managed transition — Narayen will remain as board chair to help with succession, which reduces abrupt-exit risk but leaves strategy execution questions. Read More.
• Negative Sentiment: Leadership uncertainty hit sentiment — The CEO exit at a critical AI-inflection point unsettled investors and overshadowed the beat, prompting heavy selling pressure. Read More.
• Negative Sentiment: AI-monetization skepticism persists — Despite strong AI metrics, investors remain unsure Adobe can monetize AI fast enough vs. new AI-native competitors and “agent” risks. That narrative amplified the sell-off. Read More.
• Negative Sentiment: Analyst repricing and downgrades — Some firms have cut targets or trimmed outlooks after the results/transition news, increasing near-term downside risk until succession clarity arrives. Read More.

Institutional Trading of Adobe

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Schnieders Capital Management LLC. grew its position in Adobe by 7.8% in the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after acquiring an additional 190 shares in the last quarter. Brighton Jones LLC raised its holdings 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 valued at $3,588,000 after purchasing an additional 167 shares during the period. Sivia Capital Partners LLC raised its position in shares of Adobe by 25.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after acquiring an additional 486 shares in the last quarter. DV Equities LLC purchased a new position in shares of Adobe in the 4th quarter worth approximately $204,000. Finally, Miller Capital Partners Inc. purchased a new position in shares of Adobe in the 4th quarter valued at about $194,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.

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.