Adobe (ADBE) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Adobe turned in another solid quarter of revenue growth. The company continues to dispel the notion that its business is getting disrupted by AI.
For software behemoth Adobe NASDAQ: ADBE, 2025 has been anything but a good year. Year-to-date, shares are down 21%, trading near $350—a massive 45% decline from their all-time high of $635, reached in February 2024.
Adobe Inc. just delivered double-digit revenue growth, rising ARR, and expanding AI adoption, yet trades at a compressed multiple as investor sentiment sours. ADBE's Q4 revenue reached $6.19B (+10% YoY), non-GAAP EPS $5.50 (+14%), and operating cash flow exceeded $10B, with over $12B in share repurchases. AI-influenced ARR now exceeds one-third of the total, generative credit consumption tripled QoQ, and enterprise AI deals hit records, signaling robust AI monetization.
ADBE tops fiscal Q4 estimates with $5.50 EPS and 10.5% revenue growth, as AI-driven ARR now fuels over a third of its business.
I remain bearish on Adobe Inc. despite strong Q4 FY25 earnings results, which proved that fundamentals aren't deteriorating despite the pessimism surrounding the stock. Despite 11% FY25 revenue growth, 35% EPS growth, and a below-sector P/E, ADBE stock has fallen over 20% YTD. This pattern is typical of value traps with a poor narrative. In my view, tools like Sora, Veo, Nano Banana Pro, and Midjourney could lead creators to bypass Photoshop, Premiere, and After Effects for most work, reducing time inside Adobe's ecosystem.
Adobe (ADBE) is upgraded from Hold to Buy as management actively addresses existential AI threats and repositions for growth. ADBE posted 10% Q4 revenue growth, driven by AI-powered tools, and targets 10% revenue and ARR growth for FY2026. Strategic partnerships with OpenAI, Microsoft, and Google, plus the Semrush acquisition, expand ADBE's relevance and future revenue streams.
Adobe Inc. (ADBE) Q4 2025 Earnings Call Transcript
Adobe expects to see revenue of $25.9 billion to $26.1 billion in fiscal year 2026, saying its growth will be driven in part by the rapid adoption of its artificial intelligence-powered tools.
While the top- and bottom-line numbers for Adobe (ADBE) give a sense of how the business performed in the quarter ended November 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Wednesday, December 10, 2025 As it turns out, the stock market loved today's Fed announcement about a 25 bps rate cut. The small-cap Russell 2000 zoomed to a new all-time-high close, while the S&P 500 came within 5 points of its own all-time high.
Adobe Inc. is growing nicely while trading at a very inexpensive valuation. delivers robust growth and beats Q4 estimates, continuing a 12-quarter streak of outperformance. ADBE's subscription revenue rose 11%, driving predictability and strong operating leverage, with margins and EPS outpacing revenue growth. Management guides for FY2026 revenue of ~$26B (+9.2%) and EPS growth of ~12%, with ARR expected to rise over 10%.