Goldman Sachs Reiterates Buy on Adobe (ADBE) With $570 PT, Citing AI Momentum

Adobe Inc. (NASDAQ:ADBE) is one of the Trending AI Stocks on Wall Street. On September 12, Goldman Sachs analyst Kash Rangan reiterated a Buy rating on the stock with a $570.00 price target.

Adobe shares rose after hours on strong revenue, margin, and cash flow results coupled with modest revenue guidance. While investors have been questioning the durability of double-digit growth for Adobe, analysts believe that AI is a key driver that can invigorate Digital Media ARR.

They noted that AI-first ARR has already surpassed Adobe’s $250M target for F4Q25, ahead of schedule. If this pace of growth sustains, AI could stabilize and even speed up growth in 2026. In turn, new revenue streams may also be created which will allow Adobe to sell premium products.

Overall, artificial intelligence is becoming a major driver of Adobe’s long-term growth.

“The stock is indicated +3% AH with outperformance across DM Revenue (+2%), DX Revenue (+1%), OpM (+80bps), and FCFM (+40bps), coupled with a modest upward revision to F25E DM Revenue growth guidance from 10% to 11%. While investors have questioned the durability of Adobe’s double-digit growth, we see an encouraging path forward: if AI can enable an inflection in DM ARR growth, the growth engine for the overall business should remain intact. Early proof points of AI momentum leave us constructive. Specifically, AI-first ARR has already surpassed Adobe’s $250M target initially set for F4Q25, giving us conviction that the company can exceed its 11.3% F25E DM ARR growth guidance. Should this momentum extend into F26E, AI has the potential not only to stabilize DM ARR growth but also to rejuvenate it – turning around the current deceleration trajectory into modest reacceleration. Moreover, compounding AI momentum should unlock incremental consumption-based revenue streams that are additive to topline growth, while also enabling upsell momentum into higher-priced SKUs (i.e., CC Pro) and cross-sell opportunities across the broader product portfolio. All in, we believe AI is positioning Adobe to realize an inflection in the overall business and compounding growth longer-term. We see the upcoming conference Adobe MAX and Investor Meeting (10/28) as a potential catalyst, awaiting to garner greater clarity on both AI and the company’s broader long-term framework.”

Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.

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