Here are some key analyst takeaways from the event:
DA Davidson analyst Gil Luria reiterated a Buy rating, while cutting the price target from $300 to $250.
RBC Capital Markets analyst Matthew Swanson maintained an Outperform rating, while reducing the price target from $350 to $285.
TD Cowen analyst Derrick Wood reaffirmed a Hold rating, while lowering the price target from $285 to $245.
KeyBanc Capital Markets analyst Jackson Ader reiterated an Underweight rating, while slashing the price target from $235 to $195.
BTIG analyst Nick Altmann maintained a Neutral rating on the stock.
Citizens JMP Securities analyst Patrick Walravens reaffirmed a Market Outperform rating.
Check out other analyst stock ratings.
DA Davidson: Adobe's total revenues grew 13% year-on-year to $6.618 billion, beating the consensus of $6.450 billion, Luria said in a note. The results suggested that the company is ramping up the monetization of its AI tools, with:
Firefly ARR (annual recurring revenue) is growing 50% sequentially to $300 million.
AI-first ARR growing more than 300% year-on-year to surpass $500 million.
While management raised the midpoint of their full year revenue guidance to $26.55 billion, the increase of just $550 million reflects contributions from the recent Semrush acquisition, lowered individual subscription ARR expectations, and deferred creative cloud line optimizations, the analyst stated.
RBC Capital Markets: Although Adobe delivered solid results, the quarter was characterized by too many moving parts, Swanson said. Management raised its full-year total revenue guidance by $550 million, which is above the $280 million contribution from Semrush and the beat of ...
