Why Wall Street Is Turning Cautious on Adobe Inc. (ADBE)

robot
Abstract generation in progress

Why Wall Street Is Turning Cautious on Adobe Inc. (ADBE)

Rameen Kasana

Thu, February 19, 2026 at 2:42 PM GMT+9 1 min read

In this article:

ADBE

+1.04%

Adobe Inc. (NASDAQ:ADBE) is among the most profitable software stocks to buy now. On February 11, Adobe Inc. (NASDAQ:ADBE) reached a new low of $257.64 over the past six months. This level is modestly higher than its 52-week low of 251.10.

Recently, many analysts have revised their outlook on Adobe Inc. (NASDAQ:ADBE). On February 3, TheFly reported that Piper Sandler downgraded the company’s stock to Neutral from Overweight. Again, on January 26, UBS trimmed its price target on the company to $340, down from $375, and reiterated a Neutral rating. Despite the cut, the price target implies approximately 31% upside.

Copyright: photogearch / 123RF Stock Photo

Previously, on January 12, Goldman Sachs downgraded Adobe Inc. (NASDAQ:ADBE) to Sell from Buy and set a price target of $290. According to the investment bank, the company’s NTM revenue growth of 10% and EPS growth of 10% are lower than those of its competitors by 1% and 8%, respectively. The bank believes EPS growth could be under greater strain due to ongoing investments in AI initiatives.

Adobe Inc. (NASDAQ:ADBE) is a California-based technology company operating through Digital Media, Digital Experience, and Publishing and Advertising segments.

While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

Terms and Privacy Policy

Privacy Dashboard

More Info

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin