Adobe's stock is cheap and the company is better monetizing AI. But analysts think defeating negative investor sentiment could take some time.
ADBE's Q4 results may receive a lift from strong AI-driven demand across Creative Cloud Pro and Acrobat offerings.
MRVL, TEAM, ADBE, WDAY and SNAP are five AI laggards with strong growth forecasts and rising earnings estimates for a 2026 rebound.
The shares of two significant software companies, Salesforce (NYSE: CRM) and Adobe (NASDAQ: ADBE), experienced notable increases in the week concluding on December 5, 2025. Salesforce jumped by around 13% following its impressive Q3 fiscal 2026 earnings report published on Wednesday, December 3.
Adobe Inc. and Salesforce have both lost Wall Street's favor, yet their fundamentals keep strengthening, creating one of the biggest narrative disconnects in software right now. As ADBE heads into Q4, the company is on track for its first $6B quarter, rising margins, and upgraded guidance—hardly the profile of a business supposedly threatened by AI. With retention improving, enterprise adoption accelerating, and valuation multiples collapsing to “industrial” levels, ADBE stock may be the most mispriced opportunity in big tech today.
Tap five stocks with increasing P/E ratios to try out an out-of-the-box approach. These stocks include Beyond Meat, Fiverr International, Allbirds Inc., Adobe and Five9.
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ADBE aims for up to $6.125B in Q4 revenues as AI-driven demand fuels momentum across creative and marketing tools.
Besides Wall Street's top-and-bottom-line estimates for Adobe (ADBE), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended November 2025.
Adobe (ADBE) is upgraded to 'Buy' as valuation is compelling despite negative AI sentiment and a 50% drawdown. Core products remain essential in customer workflows, with stable double-digit growth and record-level margins. ADBE is aggressively repurchasing shares, with a net buyback yield approaching 8%, supporting shareholder value.
Adobe Inc. remains a Strong Buy despite AI-related moat fears, as revenue growth and profitability metrics show resilience. Adobe's forward P/E and P/FCF ratios near 15 and 14, respectively, are unusually low for a SaaS leader with robust AI-influenced ARR growth. Fiscal Q4 2025 earnings could be an inflection point, with 95% positive analyst revisions and a flawless EPS beat record over 16 quarters.
Shares of Adobe Inc. (NASDAQ: ADBE) are trading near $336, and retail investor sentiment has shifted decisively bullish heading into the company's December 10 earnings report.