The approval clear the way for the San Jose, California-based company to repurchase up to 20m common shares.
Additionally the board also gave the OK for an additional $500m to buy back shares under its existing repurchase plan to offset the dilution from stock issuances.
Abode said the buybacks will be entirely funded from working capital at its disposal.
Adobe had 603.2 million outstanding shares as of March 2. Stock buybacks are usually intended to increase earnings/share so stock price rises, which can discourage a takeover attempt.
Adobe’s stock rose 2% in trading yesterday to $43.45 after the Board’s buyback approval was made public.
