Zacks Research Issues Negative Outlook for Adobe Earnings

Adobe Inc. (NASDAQ:ADBE) – Equities research analysts at Zacks Research dropped their Q2 2025 EPS estimates for Adobe in a report issued on Wednesday, April 2nd. Zacks Research analyst R. Department now expects that the software company will earn $4.02 per share for the quarter, down from their prior forecast of $4.06. The consensus estimate for Adobe’s current full-year earnings is $16.65 per share. Zacks Research also issued estimates for Adobe’s Q4 2025 earnings at $4.28 EPS, FY2025 earnings at $16.58 EPS, Q1 2026 earnings at $4.43 EPS, Q2 2026 earnings at $4.62 EPS, Q3 2026 earnings at $4.49 EPS, Q4 2026 earnings at $4.78 EPS, FY2026 earnings at $18.33 EPS, Q1 2027 earnings at $5.27 EPS and FY2027 earnings at $21.51 EPS.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings results on Wednesday, March 12th. The software company reported $5.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.97 by $0.11. The business had revenue of $5.71 billion for the quarter, compared to the consensus estimate of $5.66 billion. Adobe had a return on equity of 45.87% and a net margin of 25.85%. During the same period in the prior year, the firm posted $4.48 earnings per share.

ADBE has been the subject of a number of other research reports. DA Davidson decreased their price target on shares of Adobe from $685.00 to $625.00 and set a “buy” rating for the company in a report on Thursday, December 12th. TD Cowen lowered Adobe from a “buy” rating to a “hold” rating and reduced their target price for the stock from $625.00 to $550.00 in a research note on Thursday, December 12th. Robert W. Baird dropped their price target on Adobe from $490.00 to $410.00 and set a “neutral” rating on the stock in a research note on Wednesday, March 19th. KeyCorp upgraded Adobe from an “underweight” rating to a “sector weight” rating in a research note on Friday, March 21st. Finally, Morgan Stanley dropped their target price on Adobe from $660.00 to $600.00 and set an “overweight” rating on the stock in a research report on Thursday, March 13th. Eleven investment analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Adobe presently has a consensus rating of “Moderate Buy” and an average target price of $531.54.

Adobe Stock Performance

Shares of Adobe stock opened at $349.07 on Monday. The company has a 50 day moving average price of $425.66 and a 200 day moving average price of $463.29. The firm has a market capitalization of $148.77 billion, a P/E ratio of 28.15, a PEG ratio of 2.15 and a beta of 1.49. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.29. Adobe has a 52 week low of $348.80 and a 52 week high of $587.75.

Insider Buying and Selling

In other Adobe news, EVP Scott Belsky sold 3,819 shares of the business’s stock in a transaction that occurred on Monday, January 27th. The stock was sold at an average price of $430.24, for a total transaction of $1,643,086.56. Following the completion of the sale, the executive vice president now directly owns 18,334 shares in the company, valued at approximately $7,888,020.16. The trade was a 17.24 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Daniel Durn bought 1,300 shares of Adobe stock in a transaction on Thursday, March 20th. The shares were purchased at an average cost of $390.58 per share, with a total value of $507,754.00. Following the acquisition, the chief financial officer now directly owns 29,876 shares of the company’s stock, valued at approximately $11,668,968.08. The trade was a 4.55 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders sold 5,075 shares of company stock valued at $2,191,826. 0.16% of the stock is owned by corporate insiders.

Institutional Trading of Adobe

Several large investors have recently made changes to their positions in the company. Norges Bank purchased a new stake in shares of Adobe during the fourth quarter worth $2,553,035,000. Proficio Capital Partners LLC boosted its position in Adobe by 82,528.8% during the fourth quarter. Proficio Capital Partners LLC now owns 1,042,775 shares of the software company’s stock worth $463,701,000 after acquiring an additional 1,041,513 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Adobe by 82.4% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,107,788 shares of the software company’s stock valued at $937,291,000 after acquiring an additional 952,233 shares in the last quarter. Two Sigma Advisers LP raised its holdings in Adobe by 1,414.5% in the 4th quarter. Two Sigma Advisers LP now owns 889,000 shares of the software company’s stock valued at $395,321,000 after acquiring an additional 830,300 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Adobe in the 4th quarter worth approximately $365,750,000. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

About Adobe

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.