Market Challenges: Adobe Inc. is experiencing pressure from tightening marketing budgets and increased competition from AI-driven platforms, leading to a downgrade from Keybanc analyst Jackson Ader, who set a price forecast of $310.
Analyst Insights: Ader's analysis indicates that Adobe's front-office segments, particularly digital marketing, are losing priority, with a significant decrease in sales and marketing budgets expected over the next year.
Earnings Performance: Despite the challenges, Adobe reported quarterly earnings of $5.50 per share and revenue of $6.19 billion, both exceeding analyst expectations, and projected fiscal 2026 GAAP EPS between $17.90 and $18.10.
Stock Movement: Following the news, Adobe shares fell by 1.78% to $350.07, reflecting investor concerns about the company's growth outlook amid a competitive landscape.
ADBE
$352.98+Infinity%1D
Analyst Views on ADBE
Wall Street analysts forecast ADBE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADBE is 459.91 USD with a low forecast of 280.00 USD and a high forecast of 590.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
Wall Street analysts forecast ADBE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADBE is 459.91 USD with a low forecast of 280.00 USD and a high forecast of 590.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Buy
7 Hold
1 Sell
Moderate Buy
Current: 352.420
Low
280.00
Averages
459.91
High
590.00
Current: 352.420
Low
280.00
Averages
459.91
High
590.00
Citi
Tyler Radke
Neutral
maintain
$366 -> $387
2025-12-17
Reason
Citi
Tyler Radke
Price Target
$366 -> $387
2025-12-17
maintain
Neutral
Reason
Citi analyst Tyler Radke raised the firm's price target on Adobe to $387 from $366 and keeps a Neutral rating on the shares. The firm updated the company's model post the fiscal Q4 report. The quarter showed upside but the fiscal 2026 outlook was mixed, the analyst tells investors in a research note.
BMO Capital
Outperform
maintain
$405 -> $400
2025-12-15
Reason
BMO Capital
Price Target
$405 -> $400
2025-12-15
maintain
Outperform
Reason
BMO Capital lowered the firm's price target on Adobe to $400 from $405 but keeps an Outperform rating on the shares. The competitive environment remains challenging for the company, particularly with lower-end users and AI applications, even as Adobe reported Q4 upside in both net new annual recurring revenue - ARR - and total revenues, with "solid" results against low expectations, the analyst tells investors in a research note. Longer term, AI and Adobe Express can help net new ARR and growth, the firm added.
KeyBanc
Sector Weight -> Underweight
downgrade
$310
2025-12-15
Reason
KeyBanc
Price Target
$310
2025-12-15
downgrade
Sector Weight -> Underweight
Reason
KeyBanc downgraded Adobe to Underweight from Sector Weight with a $310 price target. The firm adjusted ratings in the enterprise software as part of its 2026 outlook. It has has a preference for small- and mid-cap software over large-caps heading into next year. KeyBanc's survey work shows Adobe's competitive pressures have been picking up and will continue to weigh on shares and the multiple, the analyst tells investors in a research note.
Phillip Securities
Buy
downgrade
$560 -> $487
2025-12-14
Reason
Phillip Securities
Price Target
$560 -> $487
2025-12-14
downgrade
Buy
Reason
Phillip Securities lowered the firm's price target on Adobe to $487 from $560 and keeps a Buy rating on the shares. The firm says the company's acquisition of Semrush strengthens its marketing. It expects Adobe to post 10% revenue growth and 6% earnings growth in fiscal 2026, supported by rising artificial intelligence adoption and higher subscription revenue.
About ADBE
Adobe Inc. is a global technology company. The Company's products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. Its segments include Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment is centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop and other products, offering a variety of tools for creative professionals, communicators and other consumers. The Digital Experience segment provides an integrated platform and set of products, services and solutions through Adobe Experience Cloud. The Publishing and Advertising segment contains legacy products and services. In addition, its Adobe GenStudio solution allows businesses to simplify their content supply chain process with generative artificial intelligence (AI) capabilities and intelligent automation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
