Latest news with #AcrobatAIAssistant
Yahoo
3 days ago
- Business
- Yahoo
Adobe Raises 2025 Earnings View: Is It on Track to Deliver Results?
Adobe's ADBE focus on infusing AI into its products is boosting prospects. The company raised its full-year earnings guidance to $20.50-$20.70 per share from $20.20-$20.50, following impressive second-quarter fiscal 2025 results. This upgraded outlook implies nearly 12% year-over-year company's optimism is driven by momentum across its Digital Media and Digital Experience segments. The continued adoption of AI-powered tools, such as Firefly, Acrobat AI Assistant, and GenStudio, is enhancing product value, driving deeper user engagement, and expanding Adobe's recurring revenue base, resulting in a 12% year-over-year increase in Annual Recurring Revenue (ARR) in the fiscal second confidence is driven by strong financial discipline. The company generated $2.19 billion in operating cash flow and reported $19.69 billion in remaining performance obligations, with 67% expected to be recognized within a year. These metrics provide a strong foundation to continue investing in innovation while supporting disciplined execution, deepening AI adoption and reliable recurring revenue base position the company well to achieve or even beat its 2025 earnings goal. Autodesk's ADSK core strength lies in its specialized 3D design tools like AutoCAD and Maya, serving the architecture, engineering and manufacturing sectors. Autodesk's robust cloud-based platforms, including BIM 360 and Fusion Lifecycle, support strong subscription growth. With rising demand for CAD and AEC solutions, Autodesk is well-positioned for sustained revenue expansion, though its premium pricing limits mass-market appeal compared to Adobe's broader, more accessible creative MSFT competitive edge over Adobe lies in its dominance across cloud infrastructure and AI-powered productivity tools. With Azure's rapid expansion and the growing adoption of Microsoft 365 Copilot, Microsoft offers deeper enterprise integration and workflow automation. While Adobe leads in creative software, Microsoft's broader ecosystem, AI leadership and diversified revenue base position it as a more comprehensive platform for enterprise digital transformation. Adobe shares have lost 18.2% year to date, while the broader Zacks Computer and Technology sector has returned 7.5% and the Computer-Software industry has risen 16.8%. Image Source: Zacks Investment Research Adobe stock is currently trading at a forward 12-month Price/Sales of 6.19X compared with the Computer and Technology sector's 6.6X. Adobe has a Value Score of C. Image Source: Zacks Investment Research The Zacks Consensus Estimate for ADBE's earnings is pegged at $20.63 per share for fiscal 2025, reflecting year-over-year growth of 12%. The consensus mark for earnings estimates for fiscal 2025 has been revised upward by 1.3% over the past 30 days. Image Source: Zacks Investment Research Adobe currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Autodesk, Inc. (ADSK) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 days ago
- Business
- Yahoo
Redburn Rothschild Downgrades Adobe Inc. (ADBE) to ‘Neutral' Rating; Lowers Price Target
Billionaire Kerr Neilson has bought over $1 million worth of shares in Adobe Inc. (NASDAQ:ADBE), representing 0.06% of his stock portfolio, securing the company a spot in . For Q2 FY25, Adobe Inc. (NASDAQ:ADBE) reported revenue of $5.87 billion, a YoY increase of 11%. Meanwhile, its GAAP EPS grew by 13% to $3.94 per share. Furthermore, the company's Digital Media segment achieved an ARR of 12.1% ($18.09 billion), contributing to record Q2 operating cash flow of $2.19 billion. Despite strong Q2 results, Redburn Rothschild reduced its price target for Adobe Inc. (NASDAQ:ADBE) from $420 to $280, downgrading it to a 'Neutral' rating. This downgrade, which occurred on July 2, 2025, is attributed to the much-anticipated IPO of Figma, which filed an update regarding its IPO offering on July 1, 2025. According to the official announcement, the rival firm has filed a registration on Form S-1 with the U.S. SEC for the proposed IPO of its Class A common stock. This potential IPO of Figma raises concerns around Adobe's competitive position in the market, particularly after its failed $20 billion acquisition of Figma in 2023. Nevertheless, Adobe Inc. (NASDAQ:ADBE) is progressing well and is already ahead of its $250 million AI revenue goal for FY25, thanks to its Firefly and Acrobat AI Assistant tools. Moreover, its full-year guidance remains the same, indicating FY25 EPS of $20.50-$20.70. Adobe Inc. (NASDAQ:ADBE) offers Digital Media and Digital Experience platforms, delivering creative, document, and experience-based solutions to creators, marketers, and enterprises globally. While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 7 Best Stocks to Invest in for a Quick Return and 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio.
Yahoo
03-07-2025
- Business
- Yahoo
BofA Reiterates Buy Rating on Adobe Stock, Keeps PT at $475
Adobe Inc. (NASDAQ:ADBE) is one of the . On June 26, BofA reiterated its Buy rating on Adobe Inc. stock, keeping the price target at $475. Bradley Sills remains optimistic about Adobe's prospects, citing the company's strategic positioning and strong financial results during Q2 2025. The company achieved record revenue of $5.87 billion, up 11% year-over-year and beating estimates by $73.73 million. The company's Digital Media segment recorded $4.35 billion in revenue, indicating a 12% year-over-year growth in ARR. Adobe's AI initiatives, such as Acrobat AI Assistant and Firefly, are massively contributing to revenue, with AI-driven ARR tracking ahead of the $250 million target of 2025. The analyst believes that Adobe Inc. (NASDAQ:ADBE) is in the early stages of the agentic AI cycle, which is expected to improve its competitive edge in the creative professional market. Adobe's growth in AI-influenced products will further strengthen its core offerings and expand its market reach. Sills sees Adobe's commitment to data governance and security to be key for its cloud capabilities and integration with third-party models. Adobe Inc. (NASDAQ:ADBE) is a technology company that offers creator tools and services to individuals, teams, and enterprises to create, publish, and promote content. Adobe is evolving into an AI-driven company through its generative AI tools. While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Yahoo
13-03-2025
- Business
- Yahoo
Adobe Tumbles 10%, But AI Growth Could Fuel a Comeback
Adobe (NASDAQ:ADBE) took a 10% hit in early trading Thursday after reporting its latest financial results, but analysts see potential for a rebound as the company ramps up its generative AI revenue. Mizuho's Gregg Moskowitz admitted that Adobe's stock has been frustrating in fiscal 2024. However, he pointed out that the company is finally starting to see real gains from its AI efforts. While Mizuho trimmed its price target from $620 to $575, it stuck with an Outperform rating, expecting revenue and annual recurring revenue (ARR) to pick up next year. KeyBanc took a more cautious stance, keeping its Underweight rating and lowering its target to $390 from $450. Analyst Jackson Ader noted that Adobe's AI ARR from four standalone products hit $125 million, with plans to double that by year-end. Meanwhile, Citizens analysts, led by Patrick Walravens, held a Market Perform rating, pointing to rising competition from Canva and Figma as a key challenge. They believe Adobe's real opportunity lies in using AI to streamline workflows across its Creative, Document, and Experience clouds. On the earnings call, CEO Shantanu Narayen emphasized that AI-driven tools like Acrobat AI Assistant, Firefly App, and GenStudio are already adding more than $125 million in ARR, with expectations to double that figure by the end of fiscal 2025. This article first appeared on GuruFocus.
