Adobe Inc. (ADBE), headquartered in San Jose, California, provides digital marketing and media solutions. Valued at $114.8 billion by market cap, the computer software company offers a line of application software products, type products, and content for creating, distributing, and managing information.
Shares of this technology giant have underperformed the broader market considerably over the past year. ADBE has declined 38.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.2%. In 2026, ADBE stock is down 23%, while the SPX is down marginally on a YTD basis.
Narrowing the focus, ADBE has also lagged behind the iShares Expanded Tech-Software Sector ETF (IGV). The exchange-traded fund has declined about 24.1% over the past year. However, the stock’s losses on a YTD basis outshine the ETF’s 24.6% dip over the same time frame.
Adobe's stock is struggling as analysts worry that AI is democratizing design, empowering rivals like Canva, Figma, and OpenAI to challenge Adobe's dominance. This has led to fears of slower revenue growth and earnings pressure, prompting a decade-low analyst outlook.
On Dec. 10, 2025, ADBE shares closed down marginally after reporting its Q4 results. Its adjusted EPS of $5.50 beat Wall Street expectations of $5.39. The company’s revenue was $6.2 billion, exceeding Wall Street forecasts of $6.1 billion. ADBE expects full-year adjusted EPS in the range of $23.30 to $23.50, and revenue ranging from $25.9 billion to $26.1 billion.
For the current fiscal year, ending in November, analysts expect ADBE’s EPS to grow 10.5% to $19 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 37 analysts covering ADBE stock, the consensus is a “Moderate Buy.” That’s based on 17 “Strong Buy” ratings, two “Moderate Buys,” 14 “Holds,” and four “Strong Sells.”
This configuration is less bullish than a month ago, with 21 analysts suggesting a “Strong Buy,” and three recommending a “Strong Sell.”
On Feb. 3, Piper Sandler Companies (PIPR) downgraded ADBE to a “Neutral” rating with a price target of $330, implying a potential upside of 22.5% from current levels.
The mean price target of $428.94 represents a 59.2% premium to ADBE’s current price levels. The Street-high price target of $660 suggests an ambitious upside potential of 145%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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