Yahoo Finance analysis indicates that Adobe (Nasdaq: ADBE) is currently undervalued, with a forward P/E ratio of 10x, significantly lower than peers Autodesk's 19x and Salesforce's 23x. Despite Adobe's AI-first annual recurring revenue (ARR) tripling year-over-year to $500 million, comparable to its peers' growth rates, its stock price has fallen 23.7% over the past year and 21.06% year-to-date. The analyst has given Adobe a "buy" rating with a target price of $310. In Q2 FY2026, Adobe reported revenue of $6.62 billion, a 13% year-over-year increase, non-GAAP EPS of $5.96, and total ARR reached $27.1 billion, while also raising its full-year guidance.