Adobe stock news
On October 12, 2026, Wells Fargo issued a double downgrade on Adobe Inc. (ADBE), cutting its rating to "Underweight" and lowering its price target to $225 from $270. The bank warned that Adobe's core organic growth is deteriorating, noting that organic net new annual recurring revenue (ARR) declined by more than 40% in the third quarter, which requires net new ARR to roughly double quarter--over--quarter in Q4 to achieve full--year targets. Wells Fargo also highlighted risks to fiscal 2027 guidance stemming from the ongoing CEO and CFO transitions, intensified competition in creative software, and proprietary survey results indicating Adobe is losing budget share in enterprise generative AI spending.