Adobe rises ahead of June 11 earnings

Adobe shares rose Monday after investors rotated into software stocks ahead of the company’s June 11 earnings, driven by AI-driven results from peers, bullish options positioning and a newly announced $25 billion buyback program.

The stock gained momentum in morning trading and was set to test its 100-day moving average. Market participants noted a decisive break above $262 would strengthen the rally. Adobe is roughly 20% higher than its April low and about 23% below its year-to-date high, drawing interest from value-oriented funds.

Institutional investors and options traders adjusted exposure ahead of the quarterly report. The put-to-call ratio on contracts expiring the Friday after the release stood near 0.24, indicating a strong bullish skew. Options pricing implied roughly a 9.4% potential gain through June 12.

Sentiment in the Software-as-a-Service sector shifted after large peers posted strong results and raised AI guidance, easing earlier concerns that generative AI would reduce demand for enterprise software. Capital moved out of semiconductor stocks into oversold software names, including Adobe. Market participants pointed to Adobe’s Firefly generative AI studio and its recently launched CX Enterprise agentic platform. Analysts will watch whether AI-first annual recurring revenue is scaling to the next $1 billion.

Adobe’s $25 billion repurchase authorization, announced recently, is structured at current prices to retire an estimated 20% or more of the company’s outstanding float by the end of the decade, which would increase per-share metrics over time. The company reported about 12% year-over-year revenue growth and has roughly 850 million monthly active users.

The stock trades at under 13 times forward earnings. The consensus analyst rating is “moderate buy” and the average price target is near $317, implying about 19% upside from current levels. Adobe will report second-quarter results on June 11; market participants will focus on whether the company can convert AI investments into recurring revenue growth and margin expansion.