- Wells Fargo analyst Michael Turrin downgraded Adobe to Underweight and cut the price target to $225 from $270 on October 12.
- The downgrade cites Adobe's expanded freemium strategy for Firefly and Express and the deferral of planned Creative Cloud price increases, which are expected to pressure short-term annual recurring revenue.
- Turrin flagged a steep Q4 ARR growth target that relies heavily on the Semrush acquisition, plus survey data showing Adobe losing AI budget share among chief information officers.
- Source reports conflict on the size of the move: one reports Adobe shares fell 1.7% after the downgrade, while another reports a 4% decline to $233.50 in morning trade, leaving shares down 31% year to date.
- Adobe reported Q3 FY2026 adjusted EPS of $6.13 against a $6.09 estimate and revenue up 12.9% year over year to $6.76 billion.
Quotes
“cracks starting to show”
“steep”