
Adobe (ADBE) Stock Forecast & Price Target
Adobe (ADBE) Analyst Ratings
Bulls say
Adobe experienced significant financial growth, reporting total revenue of $6,194 million for the quarter, marking an approximate 11% year-over-year increase and surpassing both estimates and consensus expectations. The company’s digital media annual recurring revenue (ARR) rose to $19.2 billion, reflecting an 11.5% growth year-over-year, with over 75% of new ARR originating from subscription growth and cross-selling initiatives. Additionally, Adobe's total remaining performance obligations (RPO) reached $25.2 billion, up 13% year-over-year, indicating solid demand and future revenue visibility bolstered by accelerating contributions from AI-driven services.
Bears say
Adobe's financial outlook presents challenges, highlighted by a projected decline in Non-GAAP operating margins from 46% to 45% year-over-year, indicating potential profitability issues despite a forecasted 10%+ annual recurring revenue (ARR) growth. The company's valuation is significantly below its large-cap software peers, trading at 14 times FY26 EPS compared to a median of 26 times, suggesting investor concerns about its growth prospects. Additionally, the risk of failing to adapt to competitive technological advancements and the potential negative impact of unsuccessful acquisitions may hinder Adobe’s long-term growth trajectory and customer retention rates.
This aggregate rating is based on analysts' research of Adobe and is not a guaranteed prediction by Public.com or investment advice.
Adobe (ADBE) Analyst Forecast & Price Prediction
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