Analysts Trim Adobe Targets After Record Quarter, Keep Outperform Ratings

Price-target reductions reflect caution over intensifying competition in lower-end and AI segments despite solid execution.

Overview

Adobe reported record Q4 FY2025 revenue of $6.19 billion, up 10% year over year, with full-year revenue of $23.77 billion and ARR of $25.20 billion that topped expectations.
BMO cut its price target to $400 from $405 and reiterated an Outperform rating, citing a challenging competitive environment for lower-end users and AI applications.
Bernstein lowered its target to $506 from $508 while maintaining Outperform, noting a 2026 outlook that points to double-digit growth.
Management guided roughly in line with consensus for FY2026, and analysts cited an EPS estimate near $22.7 with potential for stronger net new and total ARR versus FY2025.
Coverage characterized the quarter as solid against low expectations, even as near-term competition in AI-driven and value-tier offerings pressures valuation assumptions.