Citigroup Cuts Adobe (NASDAQ:ADBE) Price Target to $250.00

Adobe (NASDAQ:ADBE) had its price objective cut by Citigroup from $301.00 to $250.00 in a research report released on Friday morning,Benzinga reports. They currently have a neutral rating on the software company’s stock.

A number of other brokerages have also weighed in on ADBE. Phillip Securities lowered shares of Adobe from a “strong-buy” rating to a “hold” rating in a report on Monday, June 29th. Bank of America boosted their target price on shares of Adobe from $190.00 to $220.00 and gave the stock an “underperform” rating in a research note on Wednesday, August 19th. DA Davidson dropped their target price on Adobe from $300.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, June 12th. Royal Bank Of Canada restated an “outperform” rating and issued a $315.00 price target on shares of Adobe in a research note on Friday. Finally, Freedom Capital downgraded Adobe from a “strong-buy” rating to a “hold” rating in a report on Friday, June 12th. Seven research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $281.08.

Adobe Price Performance

ADBE stock opened at $252.23 on Friday. The company’s 50 day moving average price is $253.54 and its 200 day moving average price is $245.63. The firm has a market capitalization of $100.26 billion, a price-to-earnings ratio of 14.08, a PEG ratio of 0.88 and a beta of 1.42. Adobe has a fifty-two week low of $190.12 and a fifty-two week high of $370.86. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.75 and a current ratio of 0.77.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.08 by $0.05. Adobe had a net margin of 28.05% and a return on equity of 65.65%. The company had revenue of $6.76 billion during the quarter, compared to the consensus estimate of $6.69 billion. During the same quarter in the previous year, the firm earned $5.31 earnings per share. The firm’s quarterly revenue was up 12.9% on a year-over-year basis. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. On average, equities research analysts anticipate that Adobe will post 19.83 EPS for the current fiscal year.

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 416 shares of the stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the transaction, the chief accounting officer directly owned 3,824 shares of the company’s stock, valued at $1,010,797.92. This trade represents a 9.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director David A. Ricks purchased 10,000 shares of the business’s stock in a transaction that occurred on Thursday, June 25th. The shares were bought at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the purchase, the director directly owned 17,655 shares in the company, valued at $3,434,074.05. This represents a 130.63% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Adobe

Several hedge funds have recently made changes to their positions in the company. Brighton Jones LLC boosted its position in shares of Adobe by 2.1% in the 4th 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 grew its stake in Adobe by 25.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after buying an additional 486 shares during the last quarter. United Bank increased its position in Adobe by 12.8% during the second quarter. United Bank now owns 3,773 shares of the software company’s stock worth $1,460,000 after buying an additional 428 shares during the period. Schnieders Capital Management LLC. increased its position in 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 buying an additional 190 shares during the period. Finally, Gamco Investors INC. ET AL lifted its stake in Adobe by 190.6% in the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock valued at $1,069,000 after buying an additional 1,813 shares during the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe exceeded expectations with adjusted earnings of $6.13 per share versus $6.08 expected and revenue of $6.76 billion versus $6.69 billion. Revenue increased 12.9% year over year, supported by subscription growth. ADBE Q3 Earnings Beat Estimates, Revenues Rise on Subscription Growth
• Positive Sentiment: AI-first annual recurring revenue grew more than 150% year over year, while monthly active users across Adobe’s creativity and productivity products surpassed one billion. Management also raised its fiscal 2026 earnings and revenue targets and highlighted agentic AI and freemium products as adoption drivers. Adobe Reports Record Q3 Results
• Positive Sentiment: Some analysts remain constructive: RBC reaffirmed an outperform rating with a $315 target, while BMO raised its target to $270. Supporters argue that Adobe’s profitability, cash generation and growing AI usage could eventually translate into stronger monetization.
• Neutral Sentiment: Analyst opinion remains divided. JPMorgan maintained an overweight rating but lowered its target from $340 to $315, while Citi cut its target to $250 and retained a neutral rating. The revisions reflect uncertainty over how quickly AI users will become paying customers.
• Neutral Sentiment: Investors are also awaiting strategy details from incoming CEO David Wadhwani and watching whether Adobe’s freemium approach expands its user base without weakening new annual recurring revenue growth.
• Negative Sentiment: Adobe’s fourth-quarter revenue forecast of approximately $6.8 billion to $6.85 billion came in slightly below consensus, overshadowing the quarterly beat and full-year guidance increase. The softer outlook suggests growth may be slowing despite strong AI adoption. Adobe Forecast Misses Estimates, Renewing Fears About AI Impact
• Negative Sentiment: Competition from Google, Microsoft and AI-native tools continues to pressure Adobe’s valuation and raises questions about the durability of its creative-software leadership. Bank of America reiterated a sell rating with a $220 target, citing slowing growth and uncertain AI monetization.

Adobe Company Profile

Adobe Inc (NASDAQ:ADBE) develops software and services used for digital content creation, document management and digital experiences. The company serves creative professionals, marketers, enterprises, educators and consumers worldwide through subscription-based and cloud-enabled products.

Adobe’s Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro and After Effects, along with related tools for photography, graphic design, video production and web development.