Adobe's Growth Prospects Diminished by AI Competition and Budget Reductions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 15 2025
0mins
Should l Buy ADBE?
Source: Benzinga
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.
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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 454.52 USD with a low forecast of 310.00 USD and a high forecast of 660.00 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.
24 Analyst Rating
17 Buy
6 Hold
1 Sell
Moderate Buy
Current: 269.390
Low
310.00
Averages
454.52
High
660.00
Current: 269.390
Low
310.00
Averages
454.52
High
660.00
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.
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