New York, February 16, 2026, 19:18 (EST) — The market has closed.
Adobe Inc is set to resume trading Tuesday, following the Presidents Day break in U.S. markets. The stock closed Friday at $263.97, up 0.5%, holding narrowly above its 52-week low of $259.25. The Photoshop maker’s shares last traded in Friday’s session.
Investors are taking a breather, reshuffling bets on the AI story beyond just software. Microsoft has dropped roughly 17% year-to-date, with traders debating if the company’s big AI investments can pay off quickly enough to support its lofty valuation.
Software names are feeling the heat, with worries that surging AI tools might chip away at subscription pricing muscle. Barclays equity strategist Emmanual Cau summed up the mood as “sell first think later.” The numbers are ugly: Adobe down 25% in 2026, Salesforce off by around 30%, CrowdStrike sliding about 12%, according to Reuters. “There’s this idea that AI is somehow going to replace built-out models in the near term,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. Reuters
Plenty of Wall Street voices say a lower price tag isn’t enough to move the needle for the stock. Baird’s Rob Oliver put it bluntly: “cheap valuations alone don’t promise a recovery,” he wrote, with investors still hashing out whether Adobe’s AI initiatives will actually drive lasting revenue. MarketWatch
Adobe’s been working to keep the story on track, leaning on its guidance and consistent updates about AI progress. Back in December, CFO Dan Durn told Reuters there was “significant strength in Creative Cloud Pro, Photoshop, Lightroom,” with monthly active users on Adobe’s free products climbing 35%, topping 70 million. Reuters
The company is doubling down on acquisitions. Adobe struck a $1.9 billion cash deal to acquire marketing platform Semrush, saying the move will give marketers clearer insight into how brands show up in both website searches and on generative AI bots—think ChatGPT and Gemini. Adobe is targeting a first-half 2026 close, pending approvals and standard conditions. “The price is steep… The payoff could be high,” Emarketer analyst Grace Harmon commented. Reuters
Tuesday brings the question: does AI-linked selling keep moving through the market, or do buyers return after the extended break? Lately, Adobe has tracked the software pack, acting almost like a barometer for sentiment rather than trading on its own fundamentals.
One risk stands out: customers shifting more aggressively to usage-based pricing—paying for what they use instead of standard “seats” or per-user licenses. That could squeeze Adobe’s subscription business regardless of steady demand. Then there’s the Semrush deal: any holdup or hiccup with the close could add to the pressure.
U.S. stock markets are back in action Tuesday, following a holiday pause on Monday. Early trading usually sees choppy moves—liquidity tends to be light and positions reset quickly. That initial burst? It often cools off just as fast.
Looking ahead, Adobe’s next big test lands with its quarterly results due March 12 after the bell. Investors are zeroed in on annual recurring revenue (ARR), the subscription metric, and they’ll be hunting for signs that AI features are finally moving the revenue needle—not just driving usage.
