FY2027 EPS Estimates for Adobe Raised by Erste Group Bank

Adobe Inc. (NASDAQ:ADBE) – Equities research analysts at Erste Group Bank upped their FY2027 earnings estimates for shares of Adobe in a report issued on Tuesday, March 24th. Erste Group Bank analyst H. Engel now forecasts that the software company will post earnings of $21.76 per share for the year, up from their previous estimate of $21.50. The consensus estimate for Adobe’s current full-year earnings is $16.65 per share.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, topping the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The firm had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same quarter in the prior year, the business earned $5.08 earnings per share. Adobe’s quarterly revenue was up 12.0% on a year-over-year basis. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS.

Other equities research analysts have also recently issued reports about the company. TD Cowen cut their target price on Adobe from $400.00 to $325.00 and set a “hold” rating on the stock in a research note on Tuesday, March 10th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of Adobe in a report on Friday, March 13th. Wall Street Zen raised shares of Adobe from a “hold” rating to a “buy” rating in a research note on Saturday, March 7th. Weiss Ratings cut shares of Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 6th. Finally, William Blair downgraded Adobe from an “outperform” rating to a “market perform” rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fourteen have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $343.88.

Adobe Stock Down 2.5%

Shares of Adobe stock opened at $234.84 on Friday. Adobe has a twelve month low of $233.15 and a twelve month high of $422.95. The stock has a market capitalization of $94.92 billion, a price-to-earnings ratio of 13.68, a PEG ratio of 0.92 and a beta of 1.53. The company has a current ratio of 0.91, a quick ratio of 1.00 and a debt-to-equity ratio of 0.47. The business’s 50 day simple moving average is $268.38 and its 200-day simple moving average is $315.46.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Western Pacific Wealth Management LP bought a new position in Adobe during the 4th quarter valued at $26,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Adobe during the 3rd quarter valued at $26,000. KERR FINANCIAL PLANNING Corp bought a new stake in shares of Adobe in the 3rd quarter worth $27,000. Caitlin John LLC bought a new stake in shares of Adobe in the 3rd quarter worth $28,000. Finally, Beacon Financial Strategies CORP acquired a new stake in shares of Adobe in the fourth quarter valued at $28,000. 81.79% of the stock is currently owned by institutional investors.

Insider Transactions at Adobe

In other Adobe news, CFO Daniel Durn sold 1,646 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the transaction, the chief financial officer owned 41,995 shares of the company’s stock, valued at approximately $12,382,225.75. This trade represents a 3.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.20% of the stock is owned by corporate insiders.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: AI revenue momentum: Adobe’s ARR reached ~$26.06B with management and analysts citing AI-driven product adoption as a key growth engine — a longer-term positive for recurring revenue and monetization. Read More.
• Positive Sentiment: Analyst model upgrades: Erste Group recently bumped its FY EPS estimates for Adobe (both near-term and FY2027 updates noted), signaling some analysts see improved earnings power despite the selloff. Read More.
• Positive Sentiment: Still some bullish coverage: Roughly half of analysts remain constructive and the consensus price target (~$310) implies meaningful upside from current levels, keeping a base of buy-side support. Read More.
• Neutral Sentiment: ETF/volatility flows: New 2x ETFs tied to Adobe increase the potential for short-term leveraged flows and higher volatility but don’t change fundamentals. Traders should expect amplified moves. Read More.
• Neutral Sentiment: Macro/software selloff context: Broader software/AI trade weakness is pressuring shares industry-wide; Adobe’s move is partly market-driven, not purely company-specific. Read More.
• Negative Sentiment: Analyst downgrade and price-target cuts: William Blair cut ADBE to Market Perform and several firms trimmed targets and tone, citing intensifying AI competition (Canva, Figma, AI-native tools). That downgrade is a direct catalyst for today’s selling pressure. Read More.
• Negative Sentiment: Regulatory / legal hit: Adobe agreed to pay about $150M to settle a subscription “dark pattern” lawsuit — a near-term cash expense and reputational headwind that investors view negatively. Read More.
• Negative Sentiment: Technical/market signal: Stock recently hit a 52-week low, reinforcing negative momentum and prompting some momentum-based selling. Read More.
• Negative Sentiment: Competitive & pricing pressure: Multiple write-ups warn that rising freemium/AI-native offerings and tougher pricing dynamics could compress near-term growth and margins — a core concern behind analyst caution. Read More.

About Adobe

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.