
Adobe (ADBE) Stock Forecast & Price Target
Adobe (ADBE) Analyst Ratings
Bulls say
Adobe's financial outlook appears positive due to significant growth in AI-influenced annual recurring revenue (ARR), which has increased to $5 billion, reflecting the successful integration of AI across its product portfolio. The digital media segment has shown robust performance, with ARR growth of 11.7% year-over-year, surpassing both internal projections and consensus estimates, driven by strong adoption of AI-first products like Acrobat AI Assistant and Firefly. Additionally, the company's commitment to research and development has not hampered profitability, as evidenced by robust operating income and a raised earnings per share (EPS) guidance, alongside consistent subscription growth of 12% year-over-year.
Bears say
Adobe's stock is currently trading at a significant discount compared to its large-cap software peers, with a price-to-earnings ratio of 14x FY26 EPS against a median of 26x, which reflects concerns about its growth potential. Furthermore, the company's ongoing transition to an AI-influenced product suite presents uncertainties, leading to lowered growth assumptions and a reduction in its expected EV/FCF multiple from 23x to 22x for CY29E. The potential risks associated with failing to adapt to technological advancements and integrate acquisitions effectively could adversely impact Adobe's future revenue, operating results, and ultimately its stock valuation.
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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