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Adobe stock drops 44% despite record revenue and strong AI growth, trading at a bargain multiple.

Market News
24 Jun 2026
24/7 Wall Street
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Bullish
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Adobe's stock has fallen 44.31% year-to-date to $194.90, even as the company reported its strongest quarter ever with $6.62 billion in revenue, a 13% increase year-over-year, and significant AI-driven growth. The company raised its full-year revenue and earnings guidance, showing strong cash flow and aggressive share buybacks. Despite concerns over leadership changes and insider selling, Adobe trades at a low multiple of 8x forward earnings, making it an attractive buy given its robust recurring revenue and expanding AI business. Analysts have a consensus price target of $282.27, signaling potential upside.

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Adobe shares hit a generational low, trading at 8x earnings despite strong AI-driven growth and record revenue.

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Adobe's stock has dropped over 44% this year to $194.90, trading at a forward P/E of 8, reflecting market concerns about AI disruption and leadership changes. However, the company posted record Q2 revenue of $6.62 billion, with AI-driven annual recur...

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