Is Adobe Stock Underperforming the Dow?

Core Insights - Adobe Inc. has a market capitalization of $133.8 billion and operates through three main segments: Digital Media, Digital Experience, and Publishing and Advertising, providing solutions for digital content creation and management [1] - The company is classified as a large-cap stock, with its primary revenue sources being subscription and licensing models from flagship products like Creative Cloud and Document Cloud [2] Stock Performance - Adobe's shares have declined 42.7% from their 52-week high of $557.90, with a 12% decrease over the past three months, underperforming the Dow Jones Industrials Average, which rose over 4% in the same period [3] - Year-to-date, Adobe stock is down 28.1%, while the Dow Jones has gained 10.7%. Over the past 52 weeks, Adobe shares have dropped 38.4%, compared to a 5.3% return for the Dow Jones [4] Financial Results - In Q3 2025, Adobe reported adjusted EPS of $5.31 and revenue of $5.99 billion, exceeding expectations. The company raised its fiscal 2025 revenue forecast to between $23.65 billion and $23.70 billion and adjusted EPS outlook to between $20.80 and $20.85 [5] Analyst Sentiment - Despite the stock's poor performance, analysts maintain a moderately optimistic outlook, with a consensus rating of "Moderate Buy" from 36 analysts and a mean price target of $465.72, indicating a potential upside of 45.7% from current levels [6]