Adobe raised full-year revenue and earnings targets after record third-quarter revenue. Jefferies and Citi cut price targets, according to TheFly.
- Adobe’s Q3 revenue rose 13% to $6.76 billion, while total ending annualized recurring revenue reached $27.50 billion.
- AI-first ending annualized recurring revenue exceeded $650 million and grew more than 150%, while creative freemium monthly active users surpassed 100 million.
- Jefferies cut its Adobe price target to $275 from $285, while Citi lowered its target to $250 from $301.
Adobe Inc. (ADBE) stock was in focus after Jefferies and Citi cut their price targets following the software maker’s fiscal third-quarter (Q3) results, according to TheFly. Both firms pointed to lingering concerns around Adobe’s growth trajectory despite improving artificial intelligence (AI) metrics.
ADBE stock was down up to 4% in Friday’s premarket and was among the top trending tickers on Stocktwits at the time of writing.
Jefferies called the quarter “uneventful” after a modest revenue beat and guidance raise. Citi analyst Tyler Radke also views Adobe's fiscal Q3 report as muted, according to TheFly.
Adobe’s ‘Uneventful’ Q3 Results
Adobe’s Q3 revenue rose 13% year over year to $6.76 billion. Non-GAAP earnings per share (EPS) came in at $6.13, while total annualized recurring revenue (ARR) reached $27.50 billion, up 11.2% year over year. Adobe also raised its fiscal 2026 revenue target to between $26.576 billion and $26.626 billion and its non-GAAP EPS target to between $24.45 and $24.50.
Analysts Cut ADBE Price Targets
Jefferies analyst Brent Thill cut his price target to $275 from $285 and maintained a Hold rating. Adobe's AI metrics continue to move forward while the stock's valuation is depressed as investors await clarity, the firm said, per TheFly,
Citi cut its target for ADBE stock more sharply to $250 from $301 while keeping a Neutral rating as it sees the shares remaining range-bound given the company's decelerating growth.
Wells Fargo, however, took a more constructive view, raising its price target to $270 from $250 and maintaining an Overweight rating, per The Fly. Investor focus is likely to shift toward Adobe’s fiscal 2027 growth outlook as the company transitions to a new CEO, it said.
Adobe's AI Metrics Moving Higher
The cautious analyst response came as Adobe showed continued progress across its artificial intelligence (AI) products. Adobe's AI-first ending annualized recurring revenue (ARR) now exceeds $650 million, growing more than 150% year over year, as it looks to capitalize on AI opportunities across creativity, productivity and customer experiences.
The total monthly active users (MAU) across Adobe’s businesses surpassed 1 billion and increased more than 20% year over year. Creative freemium MAU crossed 100 million, up more than 70% from previous year. Adobe also said Acrobat AI Assistant MAU doubled quarter over quarter, while Firefly ending ARR across the Firefly app and credit packs increased 40% sequentially
What Retail Investors Think About ADBE Stock?
Retail sentiment around ADBE was “extremely bullish” on Stocktwits amid 'extremely high' message volume.
Adobe Stock has fallen more than 24% so far this year, underperforming benchmark Nasdaq100 which has risen about 14.5% during this period. Meanwhile, iShares Expanded Tech-Software Sector ETF (IGV), which holds Adobe Stock, has fallen 1.4% so far in 2026.
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