State of Michigan Retirement System 13F: Cuts ADBE Stake by $36M
Key Points
- The State of Michigan Retirement System reduced its holdings in Adobe by 148,600 shares, a decrease of 11.0%, in a filing on October 27, 2026.
- State of Michigan Retirement System held 1,200,661 $ADBE shares at quarter end, down 11.01% from the prior quarter.
- Adobe shares recently traded around $248.32, which is about equal to the closing price on the filing date of $248.36.
- The fund's position in Adobe now accounts for 2.62% of its total reported value of $11 billion.
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On October 27, 2026, the State of Michigan Retirement System cut its stake in Adobe Inc. (ADBE) by 148,600 shares. This reduction leaves the fund with a total of 1,200,661 shares currently valued at approximately $288.1 million, according to its latest Form 13F filing with the SEC.
The fund's reported value for its Adobe position is about $288 million, representing a decrease of roughly $35.7 million from previous holdings. This cut reflects an 11.0% decrease in shares since the last quarter, where the fund held 1,349,261 shares. The fund ranks 12th among its 966 reported positions, with this stake making up 2.62% of its total portfolio.
ADBE
Adobe Inc.
Where Adobe Fits in State of Michigan Retirement System's Portfolio
Adobe occupies the 12th position in the State of Michigan Retirement System's portfolio. The recent cut in shares represents a significant change relative to the size of the overall investment.
Adobe Inc. Stock Down 5.9%
Adobe shares recently traded around $248.32, which is about equal to the closing price of $248.36 on the filing date. The stock is currently below its 50-day moving average of $255.68 and its 200-day moving average of $251.83. Additionally, the shares are about 31.7% below their 52-week high of $363.70.
Recent Earnings
For the trailing twelve months, Adobe reported a revenue of approximately $25.97 billion, with an earnings per share (EPS) of $17.91. The next earnings report is scheduled for December 9, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
17 target cuts vs 0 raises.
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EPS & revenue
EPS met estimates. Revenue beat estimates by 0.5%.
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Profit surprise
EBITDA missed by 26 percent. Operating income missed by 24 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
2 downgrades, 17 target cuts.
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Earnings quality
Operating margin down 2.1 points. Positive free cash flow.
Earnings Call Summary
Adobe reported $6.62 billion in revenue, beating consensus by $33 million, but missed earnings at $5.96 non-GAAP EPS versus expected $5.83. The company is pivoting to a freemium strategy, growing Creative Cloud freemium users from 50 million to 90 million and Acrobat users from 700 million to 850 million. Firefly AI revenue approached $300 million and grew 50 percent quarter over quarter. Management stressed that capturing traffic and user engagement now is more important than short-term profit, similar to how Acrobat Reader became a long-term moat.
Guidance Adobe expects $20.5 billion to $20.6 billion in revenue for the full year, raising its prior target. For next quarter, the company guides to $6.67 billion to $6.72 billion in revenue. The company is investing heavily in freemium products and deferring Creative Cloud price increases to capture new users and build long-term growth.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Insider Buying and Selling at Adobe Inc.
Recently, there have been several notable insider transactions at Adobe. On April 28, 2026, CEO Shantanu Narayen sold 75,000 shares, valued at about $18.3 million. Additionally, Officer Jillian Forusz sold 755 shares on April 30, 2026, for approximately $185,915. Director David A Ricks made a purchase of 10,000 shares on June 25, 2026, valued at around $1.95 million.
Analysts Set New Price Targets
On September 11, 2026, Citigroup maintained a Neutral rating on Adobe with a price target of $250, down from a previous target of $301. JP Morgan also maintained an Overweight rating with a target of $315, while DA Davidson maintained a Buy rating with a target of $290. However, Wells Fargo downgraded the stock to Underweight with a target of $225 on October 12, 2026.
About Adobe Inc.
Adobe Inc. is a technology company that provides software and services for content creation and publishing. Its products are widely used by individuals and businesses in various sectors, including photography, design, and marketing. The recent adjustments in holdings by the State of Michigan Retirement System highlight ongoing portfolio management strategies.
Bottom Line
Investors will be watching for Adobe's next earnings date on December 9, 2026, as well as any further adjustments from institutional investors. The State of Michigan Retirement System's recent cut in Adobe shares signals a strategic shift in its investment approach, reflecting broader market conditions.
Related Filing Alerts
Source: State of Michigan Retirement System's 13F filing on $ADBE (Oct 27, 2026). 13F filings show holdings as of the end of the reporting quarter and may not reflect the fund's current position. Written by software, not financial advice. How we make alerts