Adobe (ADBE) Reaffirms AI Leadership With Strong Revenue and Cash Flow, Piper Sandler Reaffirms Outperform Rating
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.
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Additionally, Adobe Inc. (NASDAQ:ADBE) stated that it anticipates fiscal first-quarter revenue to be between $6.25 billion and $6.3 billion, exceeding Wall Street projections of $6.23 billion. Adobe Inc. (NASDAQ:ADBE) anticipates revenue for the full fiscal year to be around $25.9 billion and $26.1 billion, although analysts projected $25.89 billion.
The software company continued to generate significant cash flow and aggressively repurchased shares, setting its fiscal year 2026 net new Digital Media ARR target at a record $2.6 billion.
According to Piper Sandler, Adobe’s artificial intelligence operations gained solid traction, with AI credit consumption jumping threefold quarter-over-quarter. Meanwhile, the company’s AI-influenced annual recurring revenue has topped $8 billion.
Adobe Inc. (NASDAQ:ADBE) is a software company that specializes in creating, publishing, and promoting digital content. It offers a wide range of tools for professionals and consumers, including Photoshop, Illustrator, Acrobat, and Premiere Pro, which are often bundled in the Adobe Creative Cloud subscription.
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Disclosure: None. This article is originally published at Insider Monkey.
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