Adobe (NASDAQ:ADBE) Announces Earnings Results, Misses Estimates By $0.69 EPS

Adobe (NASDAQ:ADBE) released its earnings results on Wednesday. The software company reported $4.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.97 by ($0.69), Zacks reports. Adobe had a net margin of 25.85% and a return on equity of 45.87%. Adobe updated its FY 2025 guidance to 20.200-20.500 EPS and its Q2 2025 guidance to 4.950-5.000 EPS.

Adobe Stock Performance

ADBE traded up $4.94 during trading on Wednesday, hitting $438.60. 4,965,181 shares of the company traded hands, compared to its average volume of 3,427,654. Adobe has a one year low of $403.75 and a one year high of $587.75. The stock’s fifty day moving average is $439.13 and its 200 day moving average is $484.86. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.29. The firm has a market cap of $190.97 billion, a P/E ratio of 35.37, a price-to-earnings-growth ratio of 2.15 and a beta of 1.37.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Wells Fargo & Company cut their target price on Adobe from $640.00 to $600.00 and set an “overweight” rating on the stock in a research report on Friday, March 7th. Jefferies Financial Group cut their price target on Adobe from $700.00 to $650.00 and set a “buy” rating on the stock in a report on Thursday, December 12th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $475.00 price objective (down previously from $600.00) on shares of Adobe in a research note on Wednesday, January 8th. Mizuho cut their target price on shares of Adobe from $640.00 to $620.00 and set an “outperform” rating on the stock in a research note on Thursday, December 12th. Finally, BMO Capital Markets set a $515.00 price target on shares of Adobe and gave the company an “outperform” rating in a research note on Friday, March 7th. One research analyst has rated the stock with a sell rating, eleven have given a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $563.96.

Insiders Place Their Bets

In other news, CAO Jillian Forusz sold 334 shares of the firm’s stock in a transaction that occurred on 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 sale, the chief accounting officer now owns 2,685 shares in the company, valued at $1,170,203.55. This trade represents a 11.06 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Scott Belsky sold 3,819 shares of the company’s stock in a transaction that occurred on 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 completion of the transaction, the executive vice president now owns 18,334 shares in the company, 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. Over the last 90 days, insiders have sold 5,075 shares of company stock valued at $2,191,826. Company insiders own 0.15% of the company’s stock.

Institutional Investors Weigh In On Adobe

A hedge fund recently raised its stake in Adobe stock. Brighton Jones LLC raised its holdings in Adobe Inc. (NASDAQ:ADBE) by 2.1% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 8,068 shares of the software company’s stock after purchasing an additional 167 shares during the period. Brighton Jones LLC’s holdings in Adobe were worth $3,588,000 at the end of the most recent reporting period. 81.79% of the stock is owned by institutional investors.

Adobe Company Profile

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.