Analysts see 26.7% upside for ADBE despite a 40% decline, citing strong AI-driven revenue and a low forward P/E of 9.
Adobe shares have fallen 40% from peak levels, trading at $223.64, but analysts set a $283.39 price target, implying 26.7% upside. The company reported record Q2 FY26 revenue of $6.62 billion, up 13% YoY, with non-GAAP EPS of $5.96 and total ARR at $27.10 billion.
Despite the stock’s 39.8% decline over the past year, fundamentals improved, including $500 million in AI-first annual recurring revenue. Adobe’s forward P/E of 9 compares favorably to peers like Salesforce (18) and Autodesk, while management raised FY26 EPS guidance to $24.35-$24.45.
Analysts project a bull scenario of $322.51, driven by Firefly ARR nearing $300 million and Acrobat AI Assistant paid MAU surging 150% YoY. Options positioning remains bullish, with a put/call ratio of 0.46.