Strong Results, Softer Outlook: What's Next for Adobe Inc. (ADBE)?

Adobe Inc. (NASDAQ:ADBE) is among the most undervalued tech giants to buy according to hedge funds. As of December 26, Adobe Inc. (NASDAQ:ADBE) has a ‘Buy’ or equivalent rating from 67% of the analysts covering the stock. With a median price target of $422.50, the stock has an upside potential of 19.73%. On December 17, Tyler Radke from Citi raised the price target on ADBE to $387 from $366 and kept a ‘Neutral’ rating. This revision, implying an upside potential of approximately 10%, follows the company’s updated model following the fiscal Q4 report. According to the analyst, the quarter demonstrated upside, but the fiscal 2026 outlook was mixed.

When Adobe Inc. (NASDAQ:ADBE) announced its fourth-quarter results on December 10, the company outperformed with an EPS estimate of $5.50, marginally above projections of $5.40. Similarly, the company delivered a revenue of $6.19 billion, surpassing the forecasted $6.11 billion. Since then, several analysts have adjusted their forecasts.

On December 15, BMO Capital trimmed the price target on Adobe Inc. (NASDAQ:ADBE) to $400 from $405, keeping an ‘Outperform’ rating. Earlier on December 11, Evercore ISI reduced the price target to $425 from $450 and reiterated an ‘Outperform’ rating. The firm noted that although the company’s FY26 guidance is solid, the outlook reflects moderate growth relative to FY25.

Adobe Inc. (NASDAQ:ADBE) is a California-based technology company operating through Digital Media, Document Cloud, Creative Cloud, Digital Experience, and Publishing and Advertising segments. Founded in 1982, the company is committed to changing “the world through personalized digital experiences.”

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