Adobe Raises FY26 EPS Guidance After 10.5% Q4 Revenue Growth
Adobe reported Q4 EPS of $5.50, surpassing consensus by $0.10, on revenue of $6.19 billion, up 10.5% year-over-year. The company set Q1 FY26 EPS guidance at $5.85–$5.90 and full-year FY26 EPS guidance at $23.30–$23.50, underscoring its growth trajectory.
1. Institutional Stake Changes
E. Ohman J or Asset Management AB reduced its position in Adobe by 77.9% during the third quarter, selling 63,644 shares and retaining 18,014 shares valued at 6.354 million as of its latest SEC filing. Brighton Jones LLC increased its holdings by 2.1%, now owning 8,068 shares valued at 3.588 million after acquiring 167 shares in the fourth quarter. Quantbot Technologies LP and WPG Advisers LLC each initiated new positions in the first quarter valued at 59,000 apiece. Magnetar Financial LLC expanded its stake by 254.0% to 2,581 shares worth 990,000 following a purchase of 1,852 shares. Evergreen Capital Management LLC boosted its position by 88.3% to 6,069 shares valued at 2.328 million, adding 2,846 shares. Institutional investors account for 81.79% of the company’s outstanding shares.
2. Analyst Ratings and Price Objectives
Mizuho reduced its target price on Adobe from 410 to 390 and maintained an outperform rating in a November 20 research note. UBS assigned a 487 price objective on December 14, while Weiss Ratings reiterated a hold (c) rating on December 17. Jefferies lowered its target from 590 to 500 and affirmed a buy rating on December 11. Redburn Partners set a 280 price target on September 1. Among analysts, one has issued a strong buy rating, fourteen have advised buy, eleven hold, and three recommend sell. MarketBeat data shows an average rating of hold with a consensus price target of 417.93.
3. Recent Financial Performance and Guidance
In its fourth quarter, Adobe reported earnings per share of 5.50, surpassing consensus estimates by 0.10, and generated revenue of 6.19 billion, 80 million above forecasts. The company achieved a net margin of 30.00% and a return on equity of 61.28%, with revenue growing 10.5% year-over-year. Management provided first quarter guidance of 5.850 to 5.900 EPS and full year 2026 EPS guidance of 23.300 to 23.500. Sell-side analysts project full year EPS of 16.65. On the insider front, Chief Accounting Officer Jillian Forusz sold 149 shares at an average price of 337.88, totaling 50,344, and now holds 3,426 shares, representing a 4.17% reduction in her position.