Analysts Update Price Targets After Adobe Q3 Financials

Author: Riley Hayes Updated: 09-12-2025 09:59 AM

Adobe Inc. Reports Strong Q3 Results

Adobe Inc. (NASDAQ: ADBE) has once again impressed investors by delivering robust third-quarter results, showcasing its consistent growth and strength in the creative applications sector. The company revealed quarterly earnings of $5.31 per share, exceeding analyst expectations of $5.18. Revenue for the quarter was reported at $5.99 billion, outpacing the anticipated $5.91 billion.

Revenue Growth and Future Outlook

Shantanu Narayen, the chair and CEO of Adobe, emphasized the company's leadership in AI-driven creative applications, noting that its artificial intelligence-influenced annual recurring revenue has surpassed $5 billion. Moreover, the company is proud to report that its AI-first annual recurring revenue has already exceeded its year-end target of $250 million.

Adjusted EPS Guidance Raised

Following the positive quarterly performance, Adobe has elevated its fiscal 2025 adjusted EPS guidance to a range between $20.80 and $20.85, an improvement from the previous estimate of $20.65. Furthermore, the fiscal 2025 revenue outlook has also been revised upward to between $23.65 billion and $23.7 billion, compared to earlier projections of $23.57 billion.

Market Reaction and Analyst Opinions

Despite the positive earning report, Adobe's shares declined by 1.1% on the following Friday, settling at $346.73. This dip prompted several analysts to reassess their price targets for Adobe stock. The insights provided by industry professionals shed light on the future trajectory of the stock.

Analyst Ratings Overview

Piper Sandler's Brent Bracelin maintained an Overweight rating on Adobe, adjusting the price target down from $500 to $470.
Barclays analyst Saket Kalia also holds an Overweight rating but slightly raised the price target from $460 to $465.
UBS analyst Karl Keirstead retained a Neutral rating while lowering the price target from $400 to $375.
Evercore ISI Group analyst Kirk Materne maintained an Outperform rating, revising the price target from $475 to $450.

These revisions reflect the analysts' mixed expectations regarding Adobe's short-term performance following a stronger revenue report.

Implications for Investors

For those considering an investment in Adobe (ADBE), it is essential to note the analysts' divided views on the stock's future potential. The company's expansion into AI-driven solutions presents substantial growth opportunities, yet the adjusted price targets suggest a more cautious outlook in the near term.

Conclusion on Adobe's Performance

As Adobe continues to position itself at the forefront of technological advancement in the creative industry, stakeholders are encouraged to monitor not only its earnings reports but also the broader market trends that could impact its stock performance.

Frequently Asked Questions

What were Adobe's reported earnings for the third quarter?

Adobe reported earnings of $5.31 per share for the third quarter, exceeding analysts' estimates.

How much revenue did Adobe generate in Q3?

The company generated $5.99 billion in revenue for the third quarter, surpassing the expected $5.91 billion.

What is Adobe's adjusted EPS guidance for fiscal 2025?

Adobe raised its adjusted EPS guidance for fiscal 2025 to between $20.80 and $20.85.

What changes did analysts make to their price targets for Adobe?

Analysts made various adjustments, with some lowering targets while others maintained or slightly increased their predictions.

How did Adobe's stock perform after the earnings report?

After the positive earnings report, Adobe's stock fell by 1.1%, closing at $346.73.

About The Author

Riley Hayes here, a financial writer and specialist committed to assisting individuals in navigating the intricate world of finance. My love is using my blog and articles to simplify complex financial ideas into understandable, doable guidance. Having worked in finance for many years, I try to give my readers the information and resources they need to make wise financial choices.

Writing for several financial blogs has let me connect with a wide range of readers, from novice investors seeking new ideas to seasoned investors. My mission is to make money interesting and approachable so you may take charge of your financial future. I appreciate you traveling with me toward success and financial literacy.

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