Adobe (ADBE) has authorized a massive $25 billion stock repurchase program, signaling confidence in its long‑term growth and cash flow position. This move is expected to support ADBE stock’s price, which has fallen roughly 30% so far in 2026 due to fears that AI agentic tools might replace traditional design software. Shares of the company gained about 2% in the extended trading session.
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The program, which extends through April 2030, is designed to return value to shareholders, offset dilution from stock-based compensation, and steadily reduce the company’s share count over time. Adobe said it may repurchase stock on the open market or through structured buyback agreements with third parties.
The expanded buyback reflects Adobe’s belief that its stock remains undervalued relative to its growth outlook. Management highlighted the company’s healthy balance sheet, robust recurring revenue base, and accelerating adoption of Firefly-powered AI tools across Creative Cloud, Document Cloud, and Experience Cloud.
Is ADBE a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on Adobe stock based on nine Buys, 14 Holds, and three Sells assigned in the past three months. Further, the average ADBE price target of $313.48 per share implies 26.82% upside potential.
