Wall Street Firms Cut Adobe Inc. (ADBE) Price Target but Tout Revenue Growth and Long-term Outlook

Core Viewpoint - Adobe Inc. is recognized as a strong investment opportunity by hedge funds, despite recent price target reductions by analysts, due to solid revenue growth and a positive long-term outlook [1][4]. Financial Performance - Adobe achieved record quarterly revenue of $6.19 billion in Q4 of fiscal 2025, marking a 10% year-over-year increase [2]. - For the full fiscal year 2025, Adobe reported total revenue of $23.77 billion, an 11% increase year-over-year [2]. - The company's annualized recurring revenue reached $25.20 billion, reflecting an 11.5% year-over-year growth [2]. Analyst Ratings and Outlook - BMO Capital lowered its price target for Adobe to $400 from $405 but maintained an Outperform rating, citing strong Q4 and fiscal 2025 results [1]. - Analysts expect Adobe's EPS for fiscal year 2026 to be $22.7, with growth anticipated in both new and total annual recurring revenue compared to fiscal 2025 [3]. - Bernstein also reiterated an Outperform rating while adjusting their price target to $506 from $508, indicating expectations of double-digit growth in 2026 [4]. Company Overview - Adobe Inc. is a global software company known for its Creative Cloud suite, which includes popular applications like Photoshop, Illustrator, Premiere Pro, and Acrobat [4].