BMO Stays Outperform on Adobe (ADBE) Despite Competitive AI Pressures

The steadfast remains cautiously affirmative connected the banal contempt robust Q4 FY2025 results, citing competitory unit successful lower-end and AI segments. Adobe reported upside successful some nett caller Annual Recurring Revenue (ARR) and full revenues, showcasing robust show against debased marketplace expectations.

It besides guided astir successful enactment with statement for FY26 revenues, which the steadfast views arsenic a tenable starting constituent with imaginable for maturation successful nett caller and full ARR successful FY26 vs FY25.

Pixabay/Public Domain

While the steadfast does admit Adobe’s coagulated results, it besides believes that the competitory situation remains “challenging.”

“Hence, against debased expectations, we deliberation results were solid. At the aforesaid time, we judge the competitory situation remains challenging peculiarly with lower-end users and AI applications. Net, we stay Outperform though little our terms people to $400 from $405."

Adobe Inc. (NASDAQ:ADBE) is simply a bundle institution that provides integer selling and media solutions.

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Disclosure: None.