
Adobe (ADBE) Stock Forecast & Price Target
Adobe (ADBE) Analyst Ratings
Bulls say
Adobe's fiscal performance reflects robust growth, with total revenue reaching $6,194 million, a year-over-year increase of approximately 11%, driven by strong demand in its digital media and experience segments. The company's annual recurring revenue (ARR) for digital media grew 11.5% year-over-year to $19.2 billion, supported by effectively leveraged subscriptions and cross-selling strategies. Additionally, the total remaining performance obligations (RPO) climbed to $25.2 billion, indicating a solid pipeline for future revenue generation as the company continues to capitalize on AI influences in its offerings.
Bears say
Adobe's financial outlook presents concerns stemming from a projected decline in Non-GAAP operating margins, expected to drop from 46% to 45% year-over-year, alongside ambitious ARR growth targets of over 10% for FY26. The company is trading at a lower price-to-earnings ratio of 14x FY26 EPS compared to its large-cap software peers at 26x, which could indicate investor apprehension regarding future growth prospects. Additionally, Adobe faces significant risks associated with its ability to adapt to competitive technological advancements and effectively manage acquisitions, which, if unsuccessful, could further impact long-term revenue and profitability.
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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