Adobe shares are down nearly 28% this year even though fiscal Q3 revenue rose 12.9% to $6.76 billion, above the $6.70 billion consensus, and non-GAAP EPS of $6.13 beat estimates; management also raised full-year non-GAAP EPS guidance to $24.45 to $24.50. AI-first ARR exceeds $650 million and is growing more than 150% a year, and Anil Chakravarthy becomes CEO on December 1. The 24/7 Wall St. price target is $294.54, implying 16.5% upside from $252.88, with a buy rating. Bears point to remaining performance obligations growing just 8% and net income rising only 3.1%, while free cash flow grew 14.68%.
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