Adobe Still Has $24.5 Billion Left for Buybacks. That's About a Quarter of the Company.
2026-10-04 10:23
•Daniel Sparks •The Motley Fool
•••••• • Axe Cap view
Adobe’s $24.5 Billion Buyback: What It Means for Investors
Adobe’s massive buyback plan signals confidence but also highlights underlying growth concerns.
Adobe has authorized $25 billion for share buybacks, with $24.5 billion still available. That’s roughly a quarter of the company’s current value, a formidable bet by management on their stock. Buybacks have been supporting earnings per share growth—about half of it recently—which is impressive when capital can’t be deployed easily into new business lines. Yet, the market has punished Adobe’s shares, down 31% from their peak, reflecting skepticism about how AI advancements will affect Adobe’s pricing power and subscription growth. For South African investors, the direct pick is a stretch, but the USD/ZAR exchange could see some impact if the dollar steadies or strengthens on US tech shifts — keeping local tech-exposed plays like Naspers and Prosus in mind is wise. If Adobe’s subscription business falters, expect further pressure on tech valuations globally, including rand-hedge stocks. This is a wait-and-see moment rather than a buy-at-all-costs scenario. this is just our opinion and not financial advice
Watch USD/ZAR closely as US tech sentiment shifts; avoid chasing Adobe directly. Consider trimming rand-hedged growth stocks like Prosus if tech headwinds persist.
- USD/ZAR
- Prosus
- Slower subscription growth at Adobe affecting global tech
- US tech sell-off putting pressure on rand-hedged stocks
6/10
Adobe has $24.55 billion remaining from a $25 billion stock buyback authorization approved in April 2026, representing about 26% of the company's market value. The company has been repurchasing shares at an average rate of $2.3 billion per quarter using operational cash flow, with buybacks accounting for roughly half of the earnings-per-share growth in fiscal Q3. At the current stock price of $240, the analyst views buybacks as a reasonable use of capital, though notes that the stock's 31% decline from $350 reflects market concerns about AI's impact on Adobe's pricing power.
Our take is based on reporting first published by The Motley Fool.