Wall Street Firms Cut Adobe Inc. (ADBE) Price Target but Tout Revenue Growth and Long-term Outlook

Adobe Inc. (NASDAQ:ADBE) is one of the best forever stocks to buy according to hedge funds. On December 15, BMO Capital lowered its price target of Adobe Inc. (NASDAQ:ADBE) to $400 from $405. However, the research firm reiterated an Outperform rating, impressed by the company’s fourth-quarter and fiscal 2025 results.

The company achieved record quarterly revenue of $6.19 billion in its fourth quarter of fiscal 2025, representing a 10% year-over-year increase. For the full year, the company achieved revenue of $23.77 billion, up 11% year over year. Full-year annualized recurring revenue totaled $25.20 billion, up 11.5% year over year. Annual recurring revenue and total revenue came above expectations, affirming solid performance against low market expectations.

BMO Capital is confident about the company’s outlook, as its fiscal year 2026 guidance aligns with consensus estimates. Analysts expect EPS of $22.7 for FY2026. In addition, they expect robust growth in both new and total annual recurring revenue compared to fiscal 2025.

Likewise, analysts at Bernstein reiterated their Outperform rating on Adobe on December 12, despite cutting their price target to $506 from $508. According to the research firm, the 2026 outlook points to double-digit growth.

Adobe Inc. (NASDAQ:ADBE) is a global software company that provides tools for creating, publishing, and promoting digital content, including popular apps such as Photoshop, Illustrator, Premiere Pro, and Acrobat, through its Creative Cloud suite.

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Disclosure: None. This article is originally published at Insider Monkey.