Adobe Q4: 'Sticky' Products, Soaring AI Use

Core Viewpoint - Adobe, Inc. shares experienced an increase following the release of its fourth-quarter earnings report, indicating positive investor sentiment and market reaction [1]. Group 1: Earnings Report Insights - The fourth quarter saw a record number of deals exceeding $1 million, reflecting a strong commitment from enterprise customers to Adobe's platform [4]. - "AI-influenced ARR" constitutes over one-third of Adobe's overall business, with a significant increase in the consumption of generative AI credits across Creative Cloud and Firefly, which tripled quarter-over-quarter [4]. Group 2: Analyst Ratings and Price Targets - JPMorgan analysts maintained an Overweight rating on Adobe with a price target of $520, citing the company's deep customer loyalty and rapid AI adoption as growth drivers [3]. - DA Davidson analyst Gil Luria maintained a Buy rating with a $500 price target, while Jefferies analyst Brent Thill also maintained a Buy rating but lowered the price target from $590 to $500 [5]. - Wolfe Research maintained an Outperform rating, reducing the price target from $450 to $440, and TD Cowen analyst J. Derrick Wood maintained a Hold rating with a revised price target of $400 [5]. - Morgan Stanley analyst Keith Weiss maintained an Equal-Weight rating, lowering the price target from $450 to $425 [5].