Adobe Shares Fall More Than 6% After Three Analyst Downgrades

Adobe shares fell more than 6% in premarket trading Friday after three Wall Street firms downgraded the stock. 5% decline from Thursday’s close. Wolfe Research moved Adobe to peer perform from outperform, and Evercore ISI downgraded the shares to hold from buy with a new target of $225.

Cnbc reported that Adobe’s fiscal second-quarter results beat expectations and that full-year guidance also came in better than expected. Analysts nevertheless focused on the company’s lower outlook for annual recurring revenue tied to a shift toward its Freemium strategy.

Parker Lane of Stifel wrote in a Thursday note that the lower recurring-revenue outlook is weighing on the stock. He added that the departure of CFO Dan Durn, announced Thursday, and CEO Shantanu Narayen’s planned exit this year add uncertainty. "We are moving to the sidelines as the company navigates the Freemium strategy shift and CEO/CFO transitions," Lane wrote.

Alex Zukin of Wolfe Research called the earnings report “thesis changing,” citing executive changes and growth deceleration that he believes will limit future stock gains. Wolfe does not issue price targets on peer-perform-rated stocks. 2%.

He wrote that the figure implies total organic net new ARR will decline by 55-60% in the second half of 2026. Materne added that the combination of pushed-out monetization and the ongoing CEO/CFO search likely keeps shares in “show me” mode. Adobe shares are down 47% over the past 12 months and have fallen more than 37% in 2026 alone.