Adobe Stock News

Adobe (ADBE -0.60%) reported quarterly financial results that were better than what management was expecting.

Adobe remains a Buy as fundamentals stay strong despite AI disruption fears and recent stock underperformance. Q3 results were excellent: revenue up 11% YoY to $5.99B, Non-GAAP EPS up 14%, and record cash from operations. AI-infused products like Creative Cloud Pro, Acrobat AI Assistant, and Firefly are driving user growth, monetization, and new subscriber gains.

Adobe's NASDAQ: ADBE stock price is set up for a significant rebound that could add 25% to its share price by year's end. This forecast is relative to a critical support target that aligns with multiyear trends and the impact of AI on its business.

Despite yet another solid quarter and raised guidance, Adobe's (ADBE -0.28%) stock once again failed to gain much traction after earnings. The stock is down about 20% on the year, and has fallen 25% over the past five years.

Adobe stock price has remained in a tight range in the past few days as investors reacted to the recent earnings. ADBE was trading at $350, inside a range it has been stuck at in the past few days.

Adobe delivered a strong Q3-2025, beating estimates and raising guidance, yet the stock failed to rally. ADBE is a compelling GARP play, with an improved valuation, robust AI progress, and a favorable chart setup supporting a Buy rating. AI-first product ARR exceeded $250M, AI-influenced ARR grew 43% YoY to $5B+, and profitability remains industry-leading despite competition.

Adobe's valuation has been hammered, but signs of a sustained bottom is starting to manifest. The market fears a substantive disruption on Adobe's thesis, leading to a prolonged drawdown. Yet, Adobe continues to mint significant cash flow, while also seeing improved AI monetization, downplaying these threats.

Adobe delivered a standout Q3, with 11% revenue and 14% EPS growth, beating estimates and raising guidance for FY2025. ADBE's strong subscription base, record cash flow, and a $25 billion buyback program highlight its financial strength and shareholder focus. AI integration is accelerating across Creative and Document Clouds, fueling growth and positioning ADBE as a leader in creative AI soluti...