Adobe Inc. (NASDAQ:ADBE) is among the most undervalued tech giants to buy according to hedge funds. As of December 26, Adobe Inc. (NASDAQ:ADBE) has a ‘Buy’ or equivalent rating from 67% of the analysts covering the stock. With a median price target of $422.50, the stock has an upside potential of 19.73%. On December 17, Tyler Radke from Citi raised the price target on ADBE to $387 from $366 and kept a ‘Neutral’ rating. This revision, implying an upside potential of approximately 10%, follows the company’s ...

Core Viewpoint - The article discusses the continued potential for growth in AI-powered stocks, highlighting three companies with significant upside for 2026, despite the overall market showing high valuations after strong performance in previous years [2][3]. Group 1: Adobe - Adobe's stock has faced challenges due to concerns about AI's impact on its core products, yet it has shown solid operating results with steady revenue growth driven by customer acquisition and pricing strategies [5][9]. - The company has successfully launched Adobe Express, contributing to a growing user base of over 70 million across its freemium offerings, with a 15% increase in monthly active users (MAU) last quarter [6][7]. - Analysts from Jefferies and DA Davidson have set a price target of $500 for Adobe, indicating a potential upside of 41% from its current price, supported by strong operating results and a forward P/E ratio below 15 [9]. Group 2: Atlassian - Atlassian focuses on enterprise software for project planning and collaboration, serving over 300,000 customers and millions of MAUs, with a successful migration to a cloud-based platform [10][11]. - The company reported a 26% increase in cloud revenue last quarter and a 42% rise in remaining performance obligations, indicating strong growth potential [11]. - Bernstein analyst Peter Weed has set a price target of $304 for Atlassian, suggesting an 85% upside, driven by rapid top-line growth and potential margin expansion [14]. Group 3: Marvell Technology - Marvell Technology specializes in networking chips and custom AI accelerators, collaborating with major companies like Microsoft and Amazon [15]. - Despite recent concerns about competition from Broadcom, Marvell's CEO noted that it has not lost business from key clients, and the company is expected to continue growing in the custom AI accelerator market [18]. - Evercore ISI analyst Mark Lipacis raised Marvell's price target to $156, indicating an 88% upside, supported by strategic acquisitions and a strong position in custom AI solutions [19].

Adobe Inc. (NASDAQ:ADBE) is included among the 12 Best Long Term US Stocks to Buy Now. Phillip Maintains Buy on Adobe (ADBE), Sees Steady Growth Into FY26 Photo by nathan dumlao on Unsplash On December 15, Phillip Securities lowered its price target on Adobe Inc. (NASDAQ:ADBE) to $487 from $560.The firm kept a Buy rating. The change is more about valuation than doubt. Phillip says Adobe’s Semrush acquisition adds real weight to its marketing tools and improves how the pieces fit together. Looking ahead, ...

Core Insights - GreensKeeper Asset Management's Value Fund achieved a +4.0% gain in Q3 2025, with a year-to-date return of +0.2% net of fees and expenses, despite a -3.7% negative impact from the US dollar [1] - The market rally in 2025 was primarily driven by AI, cryptocurrency, and speculative investments [1] Company Summary: Adobe Inc. (NASDAQ:ADBE) - Adobe Inc. operates in Digital Media, Digital Experience, and Publishing and Advertising sectors, with a one-month return of 11.36% and a 52-week loss of 20.46% [2] - As of December 16, 2025, Adobe's stock closed at $347.89 per share, with a market capitalization of $147.575 billion [2] - GreensKeeper made a new purchase of Adobe Inc. in Q3 2025, citing concerns over AI products threatening its core franchises, but believes Adobe is well-positioned to integrate AI into its Creative Cloud suite [3] - Adobe reported revenue of $23.77 billion for the financial year 2025, reflecting an 11% year-over-year growth [4] - Adobe is ranked 13th among the 30 Most Popular Stocks Among Hedge Funds, with 88 hedge fund portfolios holding its stock at the end of Q3 2025, down from 104 in the previous quarter [4]

Core Insights - Adobe reported a strong Q4 earnings performance, exceeding expectations on both revenue and earnings, and provided an optimistic outlook for fiscal year 26 with a target of 10.2% annual recurring revenue (ARR) growth [1][3][8] Business Performance - The company achieved record new business generation in digital media, driven by strong demand for creative solutions integrated with AI [2][4] - Adobe's operating cash flow reached $10 billion for the year, indicating robust financial health [4] User Engagement - Adobe's monthly active users (MAU) in the Creative segment grew over 15%, with premium user growth exceeding 30% at a rate of 70 million MAUs [6][7] - The integration of AI into Adobe's offerings is significant, with AI-influenced ARR now representing over one-third of the business, expected to grow to 100% over time [10][12] Strategic Initiatives - Key growth opportunities include expanding the reach of Acrobat and Express to billions of users and enhancing the Creative Cloud suite with flagship products like Photoshop and Illustrator [9][10] - The recent acquisition of Seamrush is aimed at enhancing brand visibility in both traditional search engines and modern LLMs, complementing Adobe's existing portfolio [18][19] AI Integration - Adobe is focusing on integrating AI capabilities across its products, enhancing user experience and driving future growth [11][13] - The company is also developing a model ecosystem that includes both first-party and third-party models, ensuring flexibility and choice for users [16][17]

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].

Core Insights - Adobe is a leading global software company known for its digital content creation tools, including Creative Cloud, Document Cloud, and Experience Cloud solutions [2][3] - The company has recently partnered with OpenAI to integrate its tools into ChatGPT, aiming to expand its user base and enhance engagement [3][4] - Adobe's stock has faced challenges due to rising competition from AI tools, leading to concerns about its market position [5][7] Financial Performance - Adobe reported record revenue of $6.19 billion for Q4 FY2025, a 10% year-over-year increase, surpassing Wall Street's expectations [10] - Remaining Performance Obligations (RPO) reached $22.52 billion, indicating strong customer commitments, with current RPO at 65% [11] - Non-GAAP EPS for Q4 was $5.50, up 14.3% from the previous year, exceeding the consensus estimate [11] Business Segments - The Digital Media segment generated $4.62 billion in Q4 revenue, growing 11% year-over-year, while Digital Media ARR increased to $19.20 billion, up 11.5% [13] - The Digital Experience segment, which includes marketing and analytics tools, reported $1.52 billion in revenue, marking a 9% year-over-year growth [13] Future Outlook - Adobe anticipates total revenue of $25.90-$26.10 billion for fiscal 2026, representing approximately 8.8% growth at the midpoint [15] - The company aims for double-digit ARR growth in fiscal 2026, driven by its AI-enabled ecosystem and strong subscription base [14] Analyst Sentiment - Analysts maintain a "Moderate Buy" consensus rating for Adobe, with 21 out of 36 experts recommending a "Strong Buy" [16] - The average price target for Adobe is $461.84, suggesting a potential upside of 30.14%, with the most optimistic forecast reaching $660, indicating a possible 85.95% increase [17]

Financial Data and Key Metrics Changes - Adobe reported record revenue of $23.77 billion for FY25, growing 11% year-over-year, with non-GAAP EPS of $20.94, reflecting a 14% increase [4][27] - In Q4, revenue reached $6.19 billion, a 10% year-over-year growth, with GAAP EPS of $4.45 and non-GAAP EPS of $5.50, increasing 17% and 14% year-over-year respectively [29][27] - Total Adobe ending ARR was $25.2 billion, growing 11.5% year-over-year, with digital media ending ARR at $19.2 billion, also growing 11.5% year-over-year [28][27] Business Line Data and Key Metrics Changes - Digital Media achieved revenue of $4.62 billion in Q4 and $17.65 billion for the full year, both growing 11% year-over-year [9][27] - Digital Experience segment revenue was $1.52 billion in Q4 and $5.86 billion for FY25, with subscription revenue growing 11% year-over-year [21][27] - The consumption of generative credits in Creative Cloud, Firefly, and Express increased approximately 3x quarter-over-quarter [32][78] Market Data and Key Metrics Changes - Monthly active users (MAU) for creative offerings surpassed 70 million in Q4, growing over 35% year-over-year [18][20] - The number of customers with over $10 million in ARR grew 25% year-over-year, exceeding 150 [32][27] - Digital Experience subscription revenue grew over 40% year-over-year, indicating strong market demand [22][27] Company Strategy and Development Direction - Adobe's strategy focuses on leveraging AI to enhance product offerings and customer engagement, with significant investments in AI-driven solutions [4][7] - The company aims to integrate AI deeply into its solutions, with a target of over 10% total Adobe ARR growth for FY26 [8][27] - The intent to acquire Semrush is part of Adobe's strategy to enhance brand visibility and address marketers' needs in the evolving digital landscape [23][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to deliver industry-leading innovation and double-digit ARR growth, driven by strong global demand for AI solutions [36][37] - The company highlighted the importance of customer experience orchestration and the growing role of AI in marketing and content production [21][22] - Management noted that Q4 showed strong indicators of growth, setting a positive tone for FY26 targets [63][66] Other Important Information - Adobe's cash flows from operations reached $10.03 billion, with a strong ending cash and short-term investment position of $6.6 billion [28][27] - The company executed record share repurchases totaling nearly $12 billion, reducing shares outstanding by over 6% during the year [27][28] - The introduction of Firefly Foundry and other AI-driven products is expected to unlock significant economic potential for Adobe [41][46] Q&A Session Summary Question: Interest in Firefly Foundry and its economic potential - Management discussed the early stages of customer engagement with Firefly Foundry, emphasizing its ability to create customized AI models for enterprises, which could significantly enhance content production efficiency [41][42][46] Question: ROI focus on new productivity enhancements - Management highlighted the opportunity to optimize content creation and delivery, emphasizing the unique ability to track the effectiveness of marketing campaigns through integrated analytics [50][51][53] Question: Strategic rationale behind the Semrush acquisition - The acquisition aims to enhance brand visibility for marketers across various channels, including LLMs and search engines, providing a comprehensive solution for customer experience orchestration [55][57][59] Question: Future ARR growth stabilization - Management expressed confidence in the momentum across all customer groups, indicating that Q4 was an inflection point for future growth, with a strong outlook for FY26 [63][66][70]

DOUG CLARK Good afternoon and thank you for joining us. With me on the call today are Shantanu Narayen, Adobe's Chair and CEO, David Wadhwani, President of Digital Media, Anil Chakravarthy, President of Digital Experience, and Dan Durn, Executive Vice President and CFO. 1 On this call, which is being recorded, we will discuss Adobe's fourth quarter and fiscal year 2025 financial results. You can find our press release, as well as PDFs of our prepared remarks and financial results, on Adobe's Investor Relati ...

来源：美股研究社 Adobe与Salesforce两家公司虽然都已失去华尔街的青睐，但其基本面却在持续走强。 Salesforce 与 Adobe 的未来走向，无非两种可能：要么是当前软件板块中最值得入手的两只标的，要么 就是两家颓势已定、只是衰退尚未体现在财务数据上的公司。 这正是问题的棘手之处：事实上，两家公司的基本面都在持续向好，但围绕它们的市场叙事却在不断恶 化。 Adobe(ADBE) 将于 12 月 10 日发布财报，这份财报对应其 2025 财年第四季度，既是全年业绩的收官之 作，也将帮助我们更清晰地把握公司下一财年的发展预期。接下来，就让我们做好准备，梳理这份财报 的潜在看点。 过去十年，Adobe 的成功源于其向订阅制商业模式的转型 —— 目前公司近 97% 的营收均来自订阅业 务。 从业务板块划分来看，Adobe 将其运营分为三大核心领域：数字媒体业务（约占总营收的 74%）、数字 体验业务（占总营收的 25%）以及出版与广告业务（占总营收的 1%）。 2024 财年末，公司公布的营收规模达到 215 亿美元。本财年，公司重回增长轨道，设定的总营收目标 不低于 236.5 亿美元，具体内容 ...