Phillip Maintains Buy on Adobe (ADBE), Sees Steady Growth Into FY26

Core Insights - Adobe Inc. is recognized as one of the 12 Best Long Term US Stocks to Buy Now [1] - Phillip Securities maintains a Buy rating on Adobe, lowering the price target to $487 from $560, citing valuation adjustments rather than doubts about the company [2] - The firm anticipates approximately 10% revenue growth and 6% earnings growth in fiscal 2026, driven by AI adoption and increasing subscription revenue [2] Financial Performance - Adobe's fiscal Q4 2025 results demonstrated steady execution, with revenue increasing by 10% to $6.19 billion, exceeding the prior forecast range [3] - Adjusted EPS rose by 14% to $5.50, surpassing guidance expectations [3] - Digital Media revenue, which includes Creative Cloud and Document Cloud, grew by 11% to $4.62 billion, with Digital Media ARR reaching $19.2 billion, up nearly 12% [3] Growth Expectations - Adobe has consistently achieved 10% to 11% revenue growth each quarter in fiscal 2025, indicating resilience against potential AI disruptions [4] - The company projects ARR to increase by another 10.2% in the upcoming year [4] Business Overview - Adobe develops widely used software for creative professionals, enterprises, and individuals, covering areas such as photo and video editing, graphic design, web development, and document management [5]