New York, May 29, 2026, 15:03 (EDT)
- Adobe gained around 6.5% in the afternoon. The Nasdaq stayed almost flat.
- The move shifts attention to Adobe’s June-quarter targets, AI revenue, and rivals like Canva and Figma.
Adobe Inc. shares surged Friday afternoon as renewed buying sent the Photoshop maker sharply higher. The stock had been struggling with pressure from concerns about artificial intelligence rivals.
Shares on Nasdaq last changed hands at $257.10, up $15.66, or roughly 6.5%. More than 4.2 million shares moved, and the stock peaked intraday at $257.86.
That move caught attention in a steadier market. The S&P 500 edged up, the Dow gained, and the Nasdaq barely moved, Reuters said, as investors wrapped a holiday-shortened week shaped by talks of a possible U.S.-Iran truce.
Timing is key. Adobe goes into earnings with the market divided. Some see AI tools cutting into its creative software base. Others argue the selloff is overdone, as the company keeps churning out big cash flow and strong double-digit gains in subscriptions.
Adobe’s latest numbers offered ammo to bulls and bears. First-quarter revenue increased 12% to $6.40 billion, hitting a record. Annualized recurring revenue hit $26.06 billion, the company said. “Content powers all experiences in the AI era,” CEO Shantanu Narayen said in March. SEC
Adobe set its Q2 revenue outlook between $6.43 billion and $6.48 billion and called for non-GAAP EPS of $5.80 to $5.85. The company confirmed its guidance for fiscal 2026 targets.
Adobe’s stock has a way to go. Shares were well off a 52-week top of $421.42 and holding above a low of $224.15, according to Google Finance. Friday afternoon’s price put the company’s value near $105 billion.
Still, risks are there. Reuters said in March that Narayen’s planned departure after 18 years as CEO had fueled worries about Adobe’s AI plans. Ben Barringer from Quilter Cheviot told the outlet the leadership gap “deepened that scepticism.” Reuters also pointed out that both Canva and Figma were rolling out new generative AI tools for images, video, and editing. Reuters
Adobe is pushing back with new products and a big buyback. In April, the company unveiled a share repurchase plan that could reach $25 billion by April 2030. CFO Dan Durn said it’s “a direct expression of confidence” in Adobe’s cash flow and long-term value. Reuters
Wall Street is still cautious. In late April, Mizuho downgraded Adobe to Neutral from Outperform and dropped its price target to $270 from $315, pointing to stronger competition in prosumer and small-business markets and a margin risk. The stock got closer to that new target Friday, but the issue stays open.
The week ahead isn’t just about market moves. Investors want to see if AI is bringing in steady subscription revenue, if Adobe can keep its creative suite safe from cheaper competitors, and whether the CEO switch is hitting the pace of product launches.
Friday’s rally shows investors are still paying up for a rebound, but it isn’t proof the AI overhang is gone yet.
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