Citi analyst Tyler Radke lowered his price target on Adobe to $228 from $264 while keeping a neutral rating, citing an implied $500 million cut to the company's fiscal 2026 organic annual recurring revenue outlook. Adobe reported record second-quarter revenue of $6.62 billion and non-GAAP earnings per share of $5.96, but its strategic pivot toward freemium user acquisition and deferred Creative Cloud price increases are expected to slow near-term ARR growth. The company raised its full-year fiscal 2026 revenue guidance to between $26.5 billion and $26.6 billion, partly due to the Semrush acquisition, which added $480 million in ARR. Adobe also announced the resignation of CFO Dan Durn, with Steve Day serving as interim CFO.
Adobe Systems IncorporatedCiti lowered price target and cited ARR cut, with CFO resignation adding uncertainty.