Wells Fargo downgraded Adobe to Underweight from Equal Weight and cut its price target to $225, while enterprise software peers rallied. Adobe shares fell 4% to $233.50 and are down 31% year to date, while ServiceNow rose 3% to $144.39 and Intuit rose 1% to $306.37. Concerns include subscription growth and rival AI tools, and the Department of Labor recently suspended Adobe from its Permanent Labor Certification program amid multiple federal investigations. Adobe’s Q3 FY2026 results were solid, with adjusted EPS of $6.13 versus a $6.09 estimate and revenue up 12.9% to $6.76 billion, and management raised its full-year outlook.
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