JPMorgan Chase & Co. Has Lowered Expectations for Adobe (NASDAQ:ADBE) Stock Price

Adobe (NASDAQ:ADBE) had its target price lowered by research analysts at JPMorgan Chase & Co. from $420.00 to $340.00 in a report issued on Friday,Benzinga reports. The firm presently has an “overweight” rating on the software company’s stock. JPMorgan Chase & Co.‘s price target would suggest a potential upside of 67.09% from the company’s previous close.

A number of other analysts have also recently weighed in on ADBE. BMO Capital Markets lowered their price target on shares of Adobe from $285.00 to $230.00 and set a “market perform” rating on the stock in a report on Friday. DA Davidson lowered their price target on shares of Adobe from $300.00 to $250.00 and set a “buy” rating on the stock in a report on Friday. Wolfe Research cut shares of Adobe from an “outperform” rating to a “peer perform” rating in a report on Friday. UBS Group set a $365.00 price target on shares of Adobe in a report on Friday. Finally, KeyCorp lowered their price target on shares of Adobe from $235.00 to $195.00 and set an “underweight” rating on the stock in a report on Friday. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, twenty have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $287.12.

Adobe Stock Down 7.0%

Shares of NASDAQ:ADBE traded down $15.32 during trading on Friday, reaching $203.48. The stock had a trading volume of 14,941,274 shares, compared to its average volume of 5,741,170. Adobe has a one year low of $196.90 and a one year high of $405.00. The company has a market capitalization of $82.25 billion, a P/E ratio of 11.84, a PEG ratio of 0.91 and a beta of 1.42. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. The firm’s 50-day simple moving average is $245.29 and its 200 day simple moving average is $279.13.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, beating analysts’ consensus estimates of $5.82 by $0.14. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The business had revenue of $6.62 billion for the quarter, compared to analysts’ expectations of $6.45 billion. During the same period last year, the business earned $5.06 EPS. The company’s revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, research analysts expect that Adobe will post 19.14 EPS for the current fiscal year.

Adobe declared that its Board of Directors has approved a stock buyback plan on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the software company to repurchase up to 24.9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 755 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total value of $185,918.75. Following the completion of the transaction, the chief accounting officer directly owned 3,521 shares of the company’s stock, valued at $867,046.25. This trade represents a 17.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Daniel Durn sold 1,336 shares of the stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the transaction, the chief financial officer directly owned 42,833 shares of the company’s stock, valued at $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 77,091 shares of company stock valued at $18,782,773 in the last three months. 0.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Adobe

Hedge funds and other institutional investors have recently modified their holdings of the stock. Brighton Jones LLC raised its position in Adobe by 2.1% during the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock worth $3,588,000 after buying an additional 167 shares during the last quarter. Sivia Capital Partners LLC raised its position 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 raised its position in Adobe by 12.8% during the 2nd 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 last quarter. Schnieders Capital Management LLC. raised its position in Adobe by 7.8% during the 2nd 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 last quarter. Finally, Gamco Investors INC. ET AL raised its position in Adobe by 190.6% during the 2nd quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock worth $1,069,000 after buying an additional 1,813 shares during the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q2 revenue of $6.62 billion and EPS of $5.96, both above estimates, while also raising full-year revenue and earnings guidance. Adobe Reports Record Q2 Results
• Positive Sentiment: The company said AI-driven demand and stronger subscription spending helped support the improved outlook, which is a constructive sign for longer-term growth. Adobe raises annual revenue forecast, CFO to exit
• Neutral Sentiment: Multiple brokerages trimmed price targets after the report, but most kept neutral/buy-equivalent ratings, reflecting lowered near-term expectations rather than a full bearish call. Analyst price target updates
• Neutral Sentiment: Adobe is also pushing a freemium AI strategy and prioritizing user growth over immediate monetization, which could support adoption but may delay ARR growth. Adobe Pauses Price Hikes For Short-Term AI Push
• Negative Sentiment: Chief Financial Officer Dan Durn is leaving for Marvell, adding to concerns about leadership continuity as Adobe is already managing a CEO succession process. Adobe CFO Dan Durn Departs for Marvell
• Negative Sentiment: Analysts and media reports say investors are worried the company’s AI pivot may pressure near-term annual recurring revenue and slow monetization, which is weighing on the stock despite the earnings beat. Why is Adobe stock sliding today despite earnings beat?

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.