Adobe (NASDAQ:ADBE) keeps beating earnings estimates even as its shares fall, down 26.75% year to date. In fiscal Q3, revenue rose 12.9% to 6.76 billion USD, above the 6.70 billion USD consensus, and non-GAAP EPS of 6.13 USD beat the 6.09 USD estimate. 24/7 Wall St. sets a 12-month price target of 298.13 USD, 16.4% above the current 256.13 USD, and rates the stock Buy with high confidence, while the analyst consensus target is 272.31 USD with 23 analysts rating it Hold. Potential catalysts include new CEO Anil Chakravarthy taking over on December 1, Adobe MAX in November, and AI-first ARR growing more than 150%. Risks include slowing net new ARR, a deliberate shift of users to a freemium model with delayed price increases, and execution risk from the CFO exit and CEO transition, while the stock trades at a forward P/E of 9 versus 30 for Microsoft and 27 for Salesforce.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Adobe Stock Has Been Under Pressure. Here’s What Could Spark a Turnaround
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