Adobe (NASDAQ:ADBE) Trading 2.1% Higher Following Strong Earnings

Adobe Inc. (NASDAQ:ADBE)’s share price traded up 2.1% on Thursday following a stronger than expected earnings report. The stock traded as high as $357.00 and last traded at $350.43. 9,849,800 shares were traded during mid-day trading, an increase of 148% from the average session volume of 3,966,259 shares. The stock had previously closed at $343.13.

The software company reported $5.50 earnings per share for the quarter, beating the consensus estimate of $5.40 by $0.10. Adobe had a return on equity of 57.54% and a net margin of 30.01%.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 earnings per share. The company’s quarterly 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.

Analyst Ratings Changes

Several research firms have recently weighed in on ADBE. Morgan Stanley reduced 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 report on Thursday. Jefferies Financial Group reduced their target price on shares of Adobe from $590.00 to $500.00 and set a “buy” rating for the company in a report on Thursday. Redburn Partners set a $280.00 price target on shares of Adobe in a research report on Monday, September 1st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Adobe in a research report on Wednesday, October 8th. Finally, TD Cowen reduced their price objective on Adobe from $420.00 to $400.00 and set a “hold” rating for the company in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $419.39.

Insider Activity

In other news, CAO Jillian Forusz sold 149 shares of the firm’s stock in a transaction on Friday, October 31st. The stock was sold at an average price of $337.88, for a total value of $50,344.12. Following the completion of the sale, the chief accounting officer owned 3,426 shares of the company’s stock, valued at $1,157,576.88. This trade represents a 4.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 0.16% of the stock is owned by insiders.

Institutional Investors Weigh In On Adobe

Several hedge funds have recently bought and sold shares of ADBE. Vanguard Group Inc. increased its holdings in shares of Adobe by 0.8% in the 3rd 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 during the period. State Street Corp grew its position in Adobe by 1.7% during the third quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock valued at $7,277,941,000 after purchasing an additional 352,448 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in Adobe by 53.3% during the third 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 in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Adobe by 2.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,468,383 shares of the software company’s stock valued at $2,097,289,000 after buying an additional 126,688 shares during the period. Finally, Norges Bank purchased a new stake in Adobe in the 2nd quarter worth approximately $2,029,950,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Trading Up 2.1%

The business’s 50-day simple moving average is $335.90 and its 200-day simple moving average is $358.28. The company has a market cap of $146.69 billion, a PE ratio of 21.83, a P/E/G ratio of 1.26 and a beta of 1.54. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.