Wells Fargo Downgrades Adobe to Underweight, Says AI Survey Shows It Is Losing Budget Share

Wells Fargo has downgraded Adobe Inc. (NASDAQ: ADBE) from Overweight to Underweight and reduced its price target to $225, citing a survey indicating that Adobe is losing budget share in AI spending. The downgrade follows concerns over Adobe's third-quarter performance and the challenges it faces in achieving its fiscal 2027 guidance amid leadership changes. Wells Fargo now anticipates negative growth in new annual recurring revenue for fiscal 2027, with total annual recurring revenue growth projected at about 7%, below the consensus of over 8%. Following the announcement, Adobe shares fell 4.16% to $232.19.