Wells Fargo Cuts Adobe (ADBE) Price Target to $225

Wells Fargo adjusts its rating on Adobe Inc. to Underweight, setting a new price target of $225, a 8.10% downside from the current price.

By EarningsIQ Research Desk · Published Oct 16, 2026, 2:01 PM EDT

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Wells Fargo cut its price target on Adobe Inc. ($ADBE) to $225 from $270 on October 12, 2026, and rates the stock "Underweight".

Since the rating, $ADBE is up 3.0% to date (from the $238.14 close on Oct 12, 2026).

ADBE Adobe Inc.

$245.20 -26.43% year to date

Daily close · Oct 16, 2026

Key Points

On October 12, 2026, Wells Fargo lowered its rating on Adobe Inc. (ADBE) to Underweight and set a price target of $225, down from $270.
Wells Fargo's $225 price target implies 8.10% downside from Adobe Inc.'s ($ADBE) current $244.82 share price.
As of October 16, 2026, Adobe shares recently traded around $244.82, which is 10.1% below the mean analyst target of $272.31.
Adobe Inc. has a trailing twelve-month revenue of $25.97 billion and a net margin of 28.0%, indicating strong profitability.

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Not investment advice. EarningsIQ is not a registered investment adviser, and this automated Adobe Inc. alert may contain errors. Disclosures

Wells Fargo downgraded its rating on Adobe Inc. (ADBE) to Underweight on October 12, 2026, and set a new price target of $225, down from the previous target of $270. This change comes as Adobe's stock continues to trade below key moving averages and the analysts' mean target.

Other Institutional Activity in Adobe Inc.

Several institutional investors have adjusted their positions in Adobe recently. Blackrock Inc. grew its holdings by 346,878 shares, ending with 41,156,085 shares worth about $10.09 billion. State Street Corporation added 601,406 shares, bringing its total to 20,515,508 shares valued at approximately $5.03 billion. Meanwhile, Vanguard Capital Management LLC decreased its stake by 274,804 shares, resulting in 26,405,210 shares worth about $6.47 billion.

Adobe Inc. Stock Up 1.7%

Adobe shares recently traded around $244.82 as of October 16, 2026. This price is about 4.7% below the 50-day moving average of $256.84 and 3.9% below the 200-day moving average of $254.75. Additionally, the stock is 32.7% off its 52-week high of $363.70, indicating it is underperforming relative to its recent highs.

12-month forecast

$ADBE price target

Adobe Inc. daily closes and this analyst's $225 target. Not advice.

Recent Earnings

Adobe reported trailing twelve-month revenue of $25.97 billion, reflecting a year-over-year growth rate of 12.9%. The company's earnings per share (EPS) for the same period stood at $17.91. The next earnings report is scheduled for December 9, 2026.

Earnings drift grade

Outlook vs expectations on the last report — not price action.

F 27/100

Reported Jun 11, 2026

Forward outlook
17 target cuts vs 0 raises.
EPS & revenue
EPS met estimates. Revenue beat estimates by 0.5%.
Profit surprise
EBITDA missed by 26 percent. Operating income missed by 24 percent.
Pre-earnings setup
Expectations were about average.
Analyst signal
2 downgrades, 17 target cuts.
Earnings quality
Operating margin down 2.1 points. Positive free cash flow.

Earnings Call Summary

Adobe reported $6.62 billion in revenue, beating consensus by $33 million, but missed earnings at $5.96 non-GAAP EPS versus expected $5.83. The company is pivoting to a freemium strategy, growing Creative Cloud freemium users from 50 million to 90 million and Acrobat users from 700 million to 850 million. Firefly AI revenue approached $300 million and grew 50 percent quarter over quarter. Management stressed that capturing traffic and user engagement now is more important than short-term profit, similar to how Acrobat Reader became a long-term moat.

Guidance Adobe expects $20.5 billion to $20.6 billion in revenue for the full year, raising its prior target. For next quarter, the company guides to $6.67 billion to $6.72 billion in revenue. The company is investing heavily in freemium products and deferring Creative Cloud price increases to capture new users and build long-term growth.

Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.

Insider Buying and Selling at Adobe Inc.

Insider trading at Adobe shows mixed activity. On April 28, 2026, CEO Shantanu Narayen sold 75,000 shares valued at about $18.27 million. On June 25, 2026, Director David A Ricks bought 10,000 shares at an average price of $194.51, totaling approximately $1.95 million. Additionally, Officer Jillian Forusz sold 755 shares on April 30, 2026, at a price of $246.24, equating to about $185,915.

Analysts Set New Price Targets

On October 12, 2026, Wells Fargo downgraded its rating on Adobe to Underweight with a target price of $225. Earlier, on September 11, Citigroup maintained a Neutral rating with a target of $250, while JP Morgan kept an Overweight rating with a target of $315. The consensus among analysts is a hold recommendation with a mean price target of $272.31, based on 32 analyst opinions.

About Adobe Inc.

Adobe Inc. is a technology company based in San Jose, California, that specializes in software applications for creating and managing digital content. Its products serve a wide range of users, including photographers, designers, and business professionals. The recent rating change by Wells Fargo reflects concerns about Adobe's stock performance amid broader market conditions.

Bottom Line

Investors should keep an eye on Adobe's upcoming earnings report on December 9, 2026, as well as any further analyst updates that could impact the stock's outlook. The recent downgrade by Wells Fargo may signal caution among investors regarding Adobe's near-term performance.