Goldman Sachs Reiterates Buy on Adobe (ADBE) With $570 PT, Citing AI Momentum

Core Insights - Adobe Inc. is recognized as a trending AI stock, with Goldman Sachs maintaining a Buy rating and a price target of $570.00, following strong revenue and cash flow results [1] - The company’s AI-first Annual Recurring Revenue (ARR) has exceeded the $250 million target for F4Q25 ahead of schedule, indicating strong growth potential [2] - Analysts believe that AI will be a significant driver for Adobe's long-term growth, potentially stabilizing and rejuvenating its Digital Media ARR growth trajectory [3] Financial Performance - Adobe shares experienced a 3% increase in after-hours trading, with notable performance in Digital Media Revenue (+2%), Digital Experience Revenue (+1%), Operating Margin (+80bps), and Free Cash Flow Margin (+40bps) [3] - The revenue growth guidance for F25E Digital Media has been modestly revised upward from 10% to 11% [3] AI Impact - The momentum from AI is expected to create new revenue streams, allowing Adobe to offer premium products and enhance overall business growth [2][3] - If the current pace of AI growth continues, it could lead to a reacceleration of Digital Media ARR growth, countering the current deceleration [3] Upcoming Events - The upcoming Adobe MAX and Investor Meeting on October 28 is anticipated to serve as a catalyst for further clarity on AI developments and the company's long-term strategy [3]