
Adobe (ADBE) Stock Forecast & Price Target
Adobe (ADBE) Analyst Ratings
Bulls say
Adobe's financial performance in the first quarter demonstrated strong growth, with Digital Media revenue reaching $4.23 billion, representing an 11% year-over-year increase, and exceeding both consensus estimates and prior forecasts. The company's subscription revenue from Business Professionals and Consumers Group and Creative and Marketing Professionals Group reflected robust growth of 15% and 10% year-over-year, respectively, indicating a healthy demand for its content creation and digital marketing services. Furthermore, Adobe maintained a positive outlook for FY25, reaffirming guidance that anticipates total revenue of $23.30 billion to $23.55 billion, along with a projected growth in Digital Media and Digital Experience revenue, which further underscores its solid performance and market positioning.
Bears say
Adobe's stock faces a negative outlook primarily due to stagnant full-year operating margin expectations remaining flat at 46%, with guidance indicating a sequential decline to 45% for 2Q25. A sequential decline in total remaining performance obligations (RPO) by $270 million, coupled with a significant drop in total bookings of -2.0% year-over-year and -26.8% sequentially, highlights potential weakening demand. Additionally, concerns regarding increased pricing pressure and competition in the digital media space, along with a slowdown in software spending due to macroeconomic factors, further complicate the company’s growth trajectory.
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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