Adobe Says Its AI Sales Are Coming in Strong. But Will It Lift the Stock?

Core Insights - Adobe reported record quarterly revenue driven by artificial intelligence, with adjusted earnings per share of $5.31 and revenue of $5.99 billion, an 11% year-over-year increase, surpassing analysts' estimates [1][2] - The company has exceeded its "AI-first" revenue goals for the year, prompting an upward revision of its full-year outlook to adjusted earnings of $20.80 to $20.85 per share and revenue of $23.65 billion to $23.7 billion [2] Stock Performance - Adobe's shares have declined over 20% in 2025, closing below $351, amid concerns regarding AI progress and competition [3] - Despite the decline, Wall Street remains optimistic, with a mean price target above $461, indicating a potential premium of over 30% [3] - The stock was previously above $600 in February 2024, highlighting a significant drop from recent highs [4]