Adobe Says 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, exceeding analysts' estimates [1][2] - The company has surpassed its "AI-first" revenue goals for the year, leading to an increased full-year outlook for adjusted earnings and revenue [2] - Despite a challenging year with shares down over 20% in 2025, Wall Street remains optimistic, with a mean price target above $461, indicating a potential premium of over 30% [3] Financial Performance - Adobe's fiscal third-quarter revenue reached a record $5.99 billion, driven by strong AI performance, surpassing previous revenue targets [1] - The updated full-year guidance anticipates adjusted earnings of $20.80 to $20.85 per share and revenue of $23.65 billion to $23.7 billion, an increase from earlier estimates [2] Market Sentiment - Shares of Adobe have faced significant declines, down more than 20% in 2025, amid concerns regarding AI progress and competition [3] - Despite the stock's struggles, analysts maintain a positive outlook, with most ratings being "buy" and a mean price target suggesting substantial upside potential [3][4]