Adobe stock hits AI revenue target early, KeyBanc maintains Sector Weight

Published 12/09/2025, 10:26
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Investing.com - KeyBanc has reiterated its Sector Weight rating on Adobe (NASDAQ:ADBE), a $148.7 billion software giant with impressive 89.25% gross margins, following the company’s better-than-expected quarterly results. According to InvestingPro analysis, Adobe is currently trading below its Fair Value.

The software company reached its $250 million annual recurring revenue (ARR) target for AI-first products a quarter ahead of schedule, according to KeyBanc analyst Jackson Ader.

Adobe’s outlook for the upcoming quarter has been revised upward, though KeyBanc noted it remains uncertain whether this indicates a "full-fledged, material acceleration" for fiscal year 2026.

The firm maintained its Sector Weight rating on Adobe stock, suggesting a neutral stance on the company’s current valuation relative to its sector.

Adobe shares closed at $350.55 in the previous trading session.

In other recent news, Adobe has reported its fiscal third-quarter 2025 results, surpassing analyst expectations. The company achieved a non-GAAP earnings per share of $5.31, exceeding the consensus estimate of $5.18, and reported revenue of $5.99 billion, beating the anticipated $5.91 billion. Adobe’s operating margin was 46.3%, higher than the expected 45.6%. Goldman Sachs has reiterated its Buy rating on Adobe, highlighting the company’s strong performance across various metrics, including Digital Media Revenue and Digital Experience Revenue, both of which exceeded forecasts. Additionally, Adobe’s free cash flow margin and operating margin outperformed expectations. Citizens JMP analyst Patrick Walravens maintained a Market Perform rating on Adobe following the positive earnings report. These developments indicate Adobe’s continued growth and strong financial health.

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