Key Takeaways ADBE and CRM faced pressure in 2025, both declining roughly 20%. Recent earnings results reveal strong demand for both companies. ADBE and CRM's sticky product nature makes it hard for customers to leave. Technology continued its dominance throughout 2025, with the AI frenzy painting a rosy picture for 2026 as well. But while 2025 was a strong period for many, several well-known tech companies – Adobe (ADBE) and Salesforce (CRM) – didn’t join the party, declining roughly 20% a piece. This is s ...

Adobe Inc. (NASDAQ:ADBE) ranks among the best AI stocks to buy according to analysts. Piper Sandler reaffirmed its Overweight rating and $470 price target for Adobe Inc. (NASDAQ:ADBE) on December 11 in response to the company’s fiscal year 2025 results. With a $94 million revenue beat, the software giant outperformed the previous four-quarter average record of $77 million. Copyright: photogearch / 123RF Stock Photo Additionally, Adobe Inc. (NASDAQ:ADBE) stated that it anticipates fiscal first-quarter re ...

Adobe Inc. (NASDAQ:ADBE) is one of the best forever stocks to buy according to hedge funds. On December 15, BMO Capital lowered its price target of Adobe Inc. (NASDAQ:ADBE) to $400 from $405. However, the research firm reiterated an Outperform rating, impressed by the company’s fourth-quarter and fiscal 2025 results. Wall Street Firms Cut Adobe Inc. (ADBE) Price Target but Tout Revenue Growth and Long-term Outlook Copyright: photogearch / 123RF Stock Photo The company achieved record quarterly revenue o ...

Key Takeaways ADBE expects Q4 Digital Media revenues of $4.53-$4.56B, led by AI-driven product demandThe Zacks Consensus Estimate sees Digital Experience revenues at $1.402B, up 10.8% y/y.AI features in Acrobat, Photoshop and Firefly likely fueled subscription and product use growth. Adobe’s (ADBE) fourth-quarter fiscal 2025 results, set to be reported on Dec. 10, are expected to reflect the benefits of higher Digital Media revenues.Adobe expects fourth-quarter fiscal 2025 Digital Media segment revenues bet ...

Group 1 - Adobe Inc. is viewed positively by analysts, with a 12-month average price target indicating over 42% upside potential from current levels ahead of its fiscal Q4 2025 earnings release on December 10 [1] - Analysts from Barclays and D.A. Davidson have reiterated Buy ratings on Adobe, with price targets of $465 and $500 respectively [2] - During the fiscal Q3 2025 earnings release, Adobe raised its Q4 2025 revenue outlook to between $6.075 billion and $6.125 billion, and GAAP EPS guidance to a range of $4.27 to $4.32. Full-year revenue guidance was also increased to between $23.65 billion and $23.70 billion, with GAAP EPS raised to a range of $16.53 to $16.58 [3] Group 2 - Adobe announced the acquisition of Semrush for $1.9 billion, marking its first M&A activity since the termination of the Figma deal in December 2023. This acquisition is expected to enhance Adobe's existing solutions by integrating Semrush's GEO and SEO capabilities [4] - Adobe specializes in software for creating, publishing, and promoting digital content, offering tools like Photoshop, Illustrator, Acrobat, and Premiere Pro, often bundled in the Adobe Creative Cloud subscription [5]

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 ...

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%）。 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。 【如需和我们交流可扫码添加进社群】 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。 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 2 ...

Core Viewpoint - Adobe's stock is experiencing significant downward pressure, with a year-to-date decline of approximately 27%, raising concerns about its future in the AI landscape despite strong earnings and cash flow [2][8]. Company Overview - Adobe has transitioned from traditional software licensing to a software as a service (SaaS) model, becoming a pioneer in this space [4]. - The company has successfully bundled its applications into a subscription package known as Creative Cloud, which has become a standard in various sectors [5]. Financial Performance - Adobe has achieved all-time-high earnings and free cash flow (FCF), yet its stock price has decreased over the last five years [8]. - The stock is currently trading at 20.4 times earnings and 14 times forward earnings, making it the cheapest it has been in over a decade, significantly below the S&P 500's forward price-to-earnings ratio of 23.6 [14]. Market Sentiment - Investor sentiment is currently negative, focusing on concerns about Adobe's leadership in AI and the potential erosion of its competitive advantages due to generative AI tools [9][10]. - The stock's decline mirrors past sell-offs of companies like Apple and Alphabet, which later rebounded after proving their critics wrong [11][12]. Future Outlook - If Adobe can effectively implement and monetize AI tools, it could lead to a recovery in its stock price, despite potential subscriber losses [13]. - The company has been actively buying back shares, reducing its share count by 12.4% over the last five years, which supports its stock price [15]. - Adobe's balance sheet remains strong, with only $260 million in long-term debt net of cash and equivalents [16]. Earnings Report Expectations - Adobe is set to report earnings on December 10, and investors are advised to look for concrete evidence of how the company is monetizing AI rather than just optimistic statements from management [20].

Core Insights - Adobe's shares have declined 36.3% over the past year, underperforming the Zacks Computer and Technology sector's return of 23.9% and the Zacks Computer – Software industry's appreciation of 9.5% [1][8] - The underperformance is attributed to modest growth prospects due to intense competition in the AI and generative AI sectors from companies like Microsoft, Alphabet, Salesforce, and others [1][15] Financial Performance - Adobe's annual recurring revenues (ARR) influenced by AI surpassed $5 billion, with new AI-first products generating over $250 million in ARR [6][8] - The company raised its fiscal 2025 revenue guidance to between $23.65 billion and $23.7 billion, up from the previous range of $23.5-$23.6 billion [11] - The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $23.67 billion, indicating a 10.1% growth from 2024 [12] AI Business Growth - Strong demand for AI-powered products like Creative Cloud Pro and Acrobat is driving growth, with monthly active users of Acrobat and Express growing approximately 25% year over year [7][8] - The Creative Professionals segment is benefiting from increased usage of AI in applications like Photoshop and Premiere Pro [8][9] - The integrated GenStudio solution and other AI services now exceed $1 billion in ARR, growing more than 25% year over year [10] Competitive Landscape - Adobe's AI business remains small compared to competitors like Microsoft and Alphabet, which are seeing significant growth in their AI services [15] - Microsoft and Alphabet have reported returns of 17.3% and 68.3%, respectively, while Salesforce has seen a decline of 30% [2][15] Valuation Concerns - Adobe's Value Score is C, indicating a stretched valuation, trading at 11.31X price/book compared to the sector's 10.13X and competitors like Microsoft and Alphabet [16] - The stock is currently trading below the 50-day and 200-day moving averages, suggesting a bearish trend [21]

Core Viewpoint - Adobe is not just a software developer but a leader in the creative field, having embraced cloud computing and a subscription-based ecosystem, despite facing competition and a 23.47% decline in stock price this year [1][3]. Group 1: Business Model and Market Position - Adobe's competitive advantage stems from its globally recognized brand and a diverse product and service portfolio across various sectors, including business communication, personal design, marketing, and entertainment [3]. - The company's asset-light model allows for high and stable profit margins, enabling growth and innovation, with subscription revenue accounting for 96.3% of its digital media and experience segments [3][4]. Group 2: Financial Health and Profitability - Adobe's financial health is robust, with a cash/debt ratio of 0.89 and a free cash flow/debt ratio of 1.4, indicating the ability to repay all debts with annual free cash flow [6]. - The company boasts high gross margins, healthy operating profit margins, and net profit margins, with key profitability metrics like ROA at 23.68% and ROE at 53.55% [9][6]. Group 3: Growth Potential and Valuation - The fair value of Adobe is estimated using a discounted cash flow model, projecting a 14.36% growth rate over the next five years, with a terminal P/E ratio of 15.0, indicating the stock is undervalued by 25.6% to 52.4% under normal and optimistic scenarios, respectively [11][13]. - Even under a pessimistic scenario, Adobe remains at fair value, suggesting an annualized return rate of about 10.0% [13]. Group 4: Innovation and AI Strategy - Adobe recognizes AI as a structural technological change and a significant opportunity, integrating AI into its applications to create more value and drive innovation [4][14]. - The company has seen success in its AI solutions, with annual recurring revenue (ARR) from AI exceeding $5 billion, and AI-first products surpassing the $250 million target [4][6]. Group 5: Risks and Competitive Landscape - The primary concern for Adobe is the perception that it may be surpassed by competitors in the AI-driven creative field, prompting the need for continuous innovation and product upgrades to retain customers [13][14]. - The company has increased R&D spending to 18.3% of revenue, reflecting the need to stay competitive in a rapidly evolving market [14].