Adobe Systems Declines as Price Target Cuts Follow Fiscal Q1 Financial Report

Adobe Systems (ADBE) shares were down more than 14% in recent Friday trading after a series of price target cuts from investment firms followed the release of its fiscal Q1 results.

The company late Thursday reported fiscal Q1 non-GAAP net income of $4.48 per diluted share, up from $3.80 a year earlier.

Analysts polled by Capital IQ expected $4.38.

Revenue for the quarter ended March 1 was $5.18 billion, up from $4.66 billion a year earlier.

Analysts expected $5.15 billion.

For Q2, the software company is projecting non-GAAP EPS of $4.35 to $4.40 on revenue of $5.25 billion to $5.30 billion. Analysts polled by Capital IQ are looking for $4.37 and $5.31 billion, respectively.

Separately, Adobe said it has authorized the repurchase of up to $25 billion of its shares through mid-March 2028.

On Friday, UBS cut its price target on UBS stock to $540 from $600; HSBC cut its target to $511 from $557; Wells Fargo reduced its target to $675 from $690, and Barclays brought its target down to $630 from $700.

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