Twenty-eight brokerages covering Adobe have issued ratings that average out to a “Hold.” Four analysts recommend selling, twelve maintain a hold position, eleven issue buy ratings and one assigns a strong-buy. The mean 12-month price target sits at $402.85, reflecting a range from low-to-mid $290s to near $490, illustrating divergent views on Adobe’s near-term growth prospects and valuation.

In its December quarter, Adobe delivered $6.19 billion in revenue, a 10.5% year-over-year increase, and reported $5.50 in EPS, topping consensus by $0.10. Its net margin stood at 30.0% and return on equity at 61.3%. Management set Q1 FY2026 EPS guidance at $5.85–5.90 and full-year EPS at $23.30–23.50, implying mid-teens percentage growth in annualized recurring revenue (ARR) driven by strength in Digital Media subscriptions and expanding enterprise adoption of its Experience Cloud.

Major investors reshuffled Adobe positions in Q3. Norges Bank initiated a new $2.03 billion stake, while Arrowstreet Capital increased holdings by 53.3% to roughly $1.98 billion. Dodge & Cox amplified its position by over 8,000% to $562 million, and AQR raised its stake by 55.2% to $913 million. Conversely, Harel Insurance trimmed its position by 5.3% to $12.09 million, and First National Advisers reduced holdings by 73.8% to $1.07 million, signaling selective profit-taking at higher levels.

Chief Accounting Officer Jillian Forusz sold 149 shares for proceeds of approximately $50,300, reducing her stake by 4.17%. Adobe’s leverage remains conservative with a debt-to-equity ratio of 0.53, current and quick ratios at roughly 1.00 and 1.02, respectively. Its trailing-P/E of 17.7 and PEG of 1.17 suggest that analysts view the company’s double-digit growth runway as largely priced in, but still offering moderate upside if ARR targets are met or exceeded.