Adobe (NASDAQ:ADBE) Announces Quarterly Earnings Results

Adobe (NASDAQ:ADBE) released its quarterly earnings results on Wednesday. The software company reported $5.08 earnings per share for the quarter, beating the consensus estimate of $4.97 by $0.11, RTT News reports. The company had revenue of $5.71 billion for the quarter, compared to analyst estimates 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 previous year, the company posted $4.48 earnings per share. Adobe updated its FY 2025 guidance to 20.200-20.500 EPS and its Q2 2025 guidance to 4.950-5.000 EPS.

Adobe Price Performance

Shares of NASDAQ:ADBE opened at $438.60 on Thursday. The company has a market capitalization of $190.97 billion, a P/E ratio of 35.37, a P/E/G ratio of 2.15 and a beta of 1.37. Adobe has a 1-year low of $403.75 and a 1-year high of $587.75. The firm’s 50 day simple moving average is $439.01 and its two-hundred day simple moving average is $484.54. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.07 and a quick ratio of 1.07.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Barclays cut their price target on shares of Adobe from $675.00 to $645.00 and set an “overweight” rating on the stock in a report on Thursday, December 12th. Royal Bank of Canada cut their target price on Adobe from $590.00 to $550.00 and set an “outperform” rating on the stock in a research note on Friday, March 7th. StockNews.com cut Adobe from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, March 4th. TD Cowen cut Adobe from a “buy” rating to a “hold” rating and dropped their price objective for the company from $625.00 to $550.00 in a research report on Thursday, December 12th. Finally, Sanford C. Bernstein reduced their price objective on Adobe from $644.00 to $587.00 and set an “outperform” rating for the company in a report on Thursday, December 12th. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $563.96.

Insider Buying and Selling

In other Adobe news, CAO Jillian Forusz sold 334 shares of the stock in a transaction dated Tuesday, January 28th. The shares were sold at an average price of $435.83, for a total transaction of $145,567.22. Following the completion of the transaction, the chief accounting officer now owns 2,685 shares of the company’s stock, valued at $1,170,203.55. This represents a 11.06 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Scott Belsky sold 3,819 shares of the firm’s stock in a transaction dated Monday, January 27th. The shares were sold at an average price of $430.24, for a total value of $1,643,086.56. Following the transaction, the executive vice president now owns 18,334 shares of the company’s stock, valued at approximately $7,888,020.16. The trade was a 17.24 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 5,075 shares of company stock valued at $2,191,826. Company insiders own 0.15% of the company’s stock.

Hedge Funds Weigh In On Adobe

A hedge fund recently raised its stake in Adobe stock. Brighton Jones LLC grew its holdings in Adobe Inc. (NASDAQ:ADBE) by 2.1% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 8,068 shares of the software company’s stock after buying an additional 167 shares during the period. Brighton Jones LLC’s holdings in Adobe were worth $3,588,000 as of its most recent filing with the Securities & Exchange Commission. 81.79% of the stock is owned by 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.