Zacks Research Analysts Lift Earnings Estimates for Adobe

Adobe Inc. (NASDAQ:ADBE) – Analysts at Zacks Research increased their Q1 2026 EPS estimates for Adobe in a research note issued to investors on Wednesday, December 31st. Zacks Research analyst Team now expects that the software company will post earnings of $4.80 per share 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.

Other equities research analysts have also issued reports about the company. Wells Fargo & Company reduced their target price on Adobe from $470.00 to $420.00 and set an “overweight” rating for the company in a report on Thursday, November 20th. Mizuho dropped their price target on shares of Adobe from $410.00 to $390.00 and set an “outperform” rating on the stock in a research report on Thursday, November 20th. Wolfe Research reduced their price objective on shares of Adobe from $450.00 to $440.00 and set an “outperform” rating for the company in a research note on Thursday, December 11th. Wall Street Zen raised shares of Adobe from a “hold” rating to a “buy” rating in a report on Monday, December 22nd. Finally, JMP Securities reiterated a “market perform” rating on shares of Adobe in a report on Friday, September 12th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Adobe currently has an average rating of “Hold” and a consensus price target of $414.22.

Adobe Stock Performance

ADBE opened at $331.56 on Monday. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.02 and a current ratio of 1.00. The company has a market cap of $138.79 billion, a PE ratio of 19.84, a price-to-earnings-growth ratio of 1.31 and a beta of 1.53. The stock has a 50-day moving average of $337.76 and a 200-day moving average of $350.93. Adobe has a 52-week low of $311.58 and a 52-week high of $465.70.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating analysts’ consensus estimates of $5.40 by $0.10. The business had revenue of $6.19 billion for the quarter, compared to the consensus estimate of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. Adobe’s revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter last year, the firm earned $4.81 EPS. 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

A number of large investors have recently made changes to their positions in ADBE. Vanguard Group Inc. increased its stake in Adobe by 0.8% during the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company’s stock valued at $14,593,054,000 after acquiring an additional 344,816 shares during the period. State Street Corp grew its holdings in shares of Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock worth $7,277,941,000 after purchasing an additional 352,448 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in shares of 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 during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Adobe by 2.4% in the first 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 purchasing an additional 126,688 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of Adobe in the second quarter valued at $2,029,950,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

Insider Buying and Selling

In other Adobe news, CAO Jillian Forusz sold 149 shares of the stock in a transaction on Friday, October 31st. The shares were 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 directly owned 3,426 shares of the company’s stock, valued at $1,157,576.88. This represents a 4.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.16% of the stock is currently owned by insiders.

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.