NEW YORK, December 30, 2025, 12:26 ET — Regular session
- Adobe shares were little changed midday, up $0.12 at $353.28
- Investors are focused on Fed meeting minutes due at 2 p.m. ET
- Adobe’s next scheduled company catalyst is its March 12 earnings call
Adobe shares were little changed on Tuesday, trading near $353 as investors braced for the Federal Reserve’s latest policy meeting minutes later in the day.
The “minutes” — the detailed record of the Fed’s meeting — matter now because rate expectations can swing Treasury yields and, in turn, valuations for long-duration growth stocks such as software companies.
Minutes from the Fed’s Dec. 9-10 meeting are due at 2 p.m. ET, after policymakers cut rates by a quarter point (0.25 percentage point) to a 3.50%-3.75% range, a decision that drew three dissents.
U.S. stocks edged lower in what Reuters described as likely light-volume year-end trade, with the Dow, S&P 500 and Nasdaq each down modestly earlier in the session. “There might be a little bit more attention paid to the minutes given the several dissents in the December meeting,” Ross Mayfield, an investment strategy analyst at Baird, said. Reuters
Against that backdrop, Adobe (ADBE.O) was up $0.12, or 0.03%, at $353.28.
The Photoshop maker last updated investors on Dec. 10, when it forecast fiscal 2026 revenue of $25.90 billion to $26.10 billion and adjusted earnings per share of $23.30 to $23.50, both above Wall Street expectations, citing demand for its design tools and greater monetization of its AI offerings.
In the same update, Adobe said it would reshuffle some forecast and reporting segments starting in fiscal 2026 to emphasize subscription revenue by customer group and year-ending annual recurring revenue.
Adobe has also been trying to extend its reach through conversational AI platforms. It said earlier this month it would integrate Photoshop, Adobe Express and Acrobat into ChatGPT, letting users trigger image edits, graphic design and PDF tasks inside the OpenAI-owned chatbot.
For traders, the near-term debate is whether those AI features translate into durable subscription growth rather than one-off experimentation, as competition intensifies across creative and marketing software.
A key watch item is annual recurring revenue, or ARR — a subscription metric that captures the annual value of contracted recurring revenue. Updates on AI-driven conversions and pricing for generative features are likely to be central to sentiment into 2026.
The next scheduled company catalyst is Adobe’s first-quarter fiscal 2026 earnings call on March 12, according to the company’s investor relations calendar.
On Tuesday, Adobe traded between $350.10 and $355.24. In the short term, the $350 area is acting as a line in the sand for buyers, while $355 has capped gains so far.
Near-term direction may hinge on rates: the Fed minutes later Tuesday could set the tone for Treasury yields and high-multiple software stocks into the final session of 2025.
