Adobe (NASDAQ:ADBE) Trading Up 1.9% – Here’s Why

Adobe Inc. (NASDAQ:ADBE) shares were up 1.9% during mid-day trading on Wednesday . The stock traded as high as $357.80 and last traded at $354.66. Approximately 4,208,148 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 3,981,709 shares. The stock had previously closed at $347.89.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe announced a multi‑year strategic partnership with Runway to integrate Runway’s generative video technology into Adobe’s creative stack and make Runway the preferred API partner — a move that accelerates Firefly’s video capabilities and strengthens Adobe’s positioning in pro video workflows. Adobe and Runway Partner to Deliver the Next Generation of AI Video for Creators, Studios and Brands
• Positive Sentiment: Adobe is adding Runway’s new video AI tool into Firefly under an exclusive partnership, expanding creative features that can drive higher engagement and subscription value for Adobe’s Creative Cloud customers. Adobe Adds Runway’s New Video AI Tool To Firefly In Exclusive Partnership
• Positive Sentiment: Qualified Digital launched an AI‑assisted accelerator to speed migrations to Adobe Experience Platform Web SDK, which could reduce deployment friction for enterprise customers and support faster platform adoption. 85% Faster – Qualified Digital Announces AI-assisted Accelerator
• Neutral Sentiment: Phillip Securities reiterated a Buy rating on ADBE but trimmed its price target (from $560 to $487), signaling continued conviction in long‑term growth while acknowledging valuation pressure after recent gains. Phillip Maintains Buy on Adobe (ADBE), Sees Steady Growth Into FY26
• Neutral Sentiment: Adobe Digital Insights reports holiday e‑commerce returns down ~2.5% year‑over‑year — a positive signal for merchants and the broader digital commerce metrics Adobe monitors, though it is a modest, indirect benefit to Adobe’s business. E-Commerce Returns Of Holiday Purchases Down 2.5%, Adobe Reports
• Negative Sentiment: A proposed class‑action alleges Adobe misused authors’ works to train its AI models; multiple outlets report the suit — a reputational and legal risk that could lead to costly litigation, regulatory scrutiny, or changes to training practices. Adobe sued for allegedly misusing authors’ work in AI training
• Negative Sentiment: KeyBanc downgraded ADBE to Underweight with a $310 price target, arguing limited near‑term upside after strong results — analyst downgrades can pressure sentiment and trigger short‑term selling. KeyBanc Turns Bearish on Adobe (ADBE) Despite Strong Q4 Results
• Negative Sentiment: Coverage on free Acrobat alternatives highlights competitive pressure in document tools; this is a longer‑term product/commercial risk but not an immediate earnings threat. Free Adobe Acrobat Alternatives for Every Need in 2026

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ADBE. Mizuho cut their target price on shares of Adobe from $410.00 to $390.00 and set an “outperform” rating on the stock in a research note on Thursday, November 20th. TD Cowen lowered 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. Redburn Partners set a $280.00 target price on Adobe in a report on Monday, September 1st. JMP Securities reiterated a “market perform” rating on shares of Adobe in a research report on Friday, September 12th. Finally, Wells Fargo & Company dropped their price target on Adobe from $470.00 to $420.00 and set an “overweight” rating on the stock in a research report on Thursday, November 20th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Adobe currently has an average rating of “Hold” and an average target price of $417.93.

Adobe Stock Up 0.0%

The firm has a market cap of $148.96 billion, a price-to-earnings ratio of 21.30, a price-to-earnings-growth ratio of 1.40 and a beta of 1.54. The stock has a 50-day moving average of $336.73 and a 200-day moving average of $355.85. The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53.

Adobe (NASDAQ:ADBE) last issued its earnings results 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 firm had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.11 billion. During the same period last year, the company earned $4.81 earnings per share. The firm’s revenue for the quarter 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. As a group, sell-side analysts forecast that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insiders Place Their Bets

In other Adobe news, CAO Jillian Forusz sold 149 shares of the business’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 completion of the transaction, the chief accounting officer directly owned 3,426 shares of the company’s stock, valued at $1,157,576.88. The trade was a 4.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Adobe

A number of hedge funds have recently made changes to their positions in ADBE. Advisors Management Group Inc. ADV boosted its position in shares of Adobe by 1.2% during the third quarter. Advisors Management Group Inc. ADV now owns 15,299 shares of the software company’s stock worth $5,397,000 after buying an additional 175 shares during the period. Strategic Investment Advisors MI boosted its position in Adobe by 6.4% during the 3rd quarter. Strategic Investment Advisors MI now owns 1,669 shares of the software company’s stock worth $589,000 after acquiring an additional 101 shares during the period. Bourne Lent Asset Management Inc. grew its stake in shares of Adobe by 2.1% in the third quarter. Bourne Lent Asset Management Inc. now owns 57,346 shares of the software company’s stock worth $20,229,000 after purchasing an additional 1,200 shares in the last quarter. Mirabella Financial Services LLP raised its stake in shares of Adobe by 102.1% during the third quarter. Mirabella Financial Services LLP now owns 7,594 shares of the software company’s stock valued at $2,675,000 after purchasing an additional 3,836 shares in the last quarter. Finally, Hudson Bay Capital Management LP lifted its holdings in Adobe by 195.0% in the third quarter. Hudson Bay Capital Management LP now owns 1,181 shares of the software company’s stock worth $417,000 after purchasing an additional 2,424 shares during the period. Institutional investors own 81.79% of the company’s stock.

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.