DA Davidson Has Positive Outlook of Adobe FY2025 Earnings

Key Points

• DA Davidson raises its FY2025 EPS estimate for Adobe to $17.11, reflecting confidence in the company's performance, while maintaining a "Buy" rating and a price target of $500.00.
• Adobe reported Q3 earnings of $5.31 per share, exceeding expectations, with revenue of $5.99 billion, a 10.7% increase year-over-year.
• Several analysts have shifted their price targets for Adobe, indicating a range of ratings from "Strong Buy" to "Sell," resulting in an average consensus price target of $435.63.

Adobe Inc. (NASDAQ:ADBE - Free Report) - Analysts at DA Davidson lifted their FY2025 earnings per share estimates for Adobe in a report released on Friday, September 12th. DA Davidson analyst G. Luria now anticipates that the software company will post earnings per share of $17.11 for the year, up from their prior estimate of $16.94. DA Davidson currently has a "Buy" rating and a $500.00 target price on the stock. The consensus estimate for Adobe's current full-year earnings is $16.65 per share. DA Davidson also issued estimates for Adobe's Q4 2025 earnings at $4.41 EPS and FY2026 earnings at $19.60 EPS.

Several other research firms have also issued reports on ADBE. TD Cowen reduced their target price on Adobe from $470.00 to $420.00 and set a "hold" rating on the stock in a report on Friday. Stifel Nicolaus lowered their price target on Adobe from $525.00 to $480.00 and set a "buy" rating for the company in a report on Friday, June 13th. Evercore ISI lowered their price target on Adobe from $475.00 to $450.00 and set an "outperform" rating for the company in a report on Friday. Citigroup lowered their price target on Adobe from $450.00 to $400.00 and set a "neutral" rating for the company in a report on Thursday. Finally, Mizuho lowered their price target on Adobe from $530.00 to $460.00 and set an "outperform" rating for the company in a report on Monday, September 8th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Adobe currently has a consensus rating of "Moderate Buy" and an average target price of $435.63.

Adobe Price Performance

Shares of ADBE traded down $2.26 during trading hours on Monday, hitting $347.10. 6,760,024 shares of the company were exchanged, compared to its average volume of 4,336,047. The company has a market cap of $147.24 billion, a price-to-earnings ratio of 21.63, a P/E/G ratio of 1.65 and a beta of 1.48. Adobe has a fifty-two week low of $330.04 and a fifty-two week high of $557.90. The company has a quick ratio of 0.99, a current ratio of 1.02 and a debt-to-equity ratio of 0.53. The firm's fifty day moving average is $357.32 and its 200 day moving average is $378.97.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Thursday, September 11th. The software company reported $5.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.18 by $0.13. The company had revenue of $5.99 billion for the quarter, compared to analyst estimates of $5.91 billion. Adobe had a return on equity of 57.54% and a net margin of 30.01%.Adobe's quarterly revenue was up 10.7% on a year-over-year basis. During the same period in the prior year, the firm posted $4.65 EPS. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS.

Hedge Funds Weigh In On Adobe

Several hedge funds and other institutional investors have recently bought and sold shares of ADBE. Brighton Jones LLC grew its holdings in Adobe by 2.1% in the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock worth $3,588,000 after purchasing an additional 167 shares during the period. Bank Pictet & Cie Europe AG raised its holdings in Adobe by 2.7% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 28,969 shares of the software company's stock worth $12,882,000 after buying an additional 756 shares during the last quarter. Silvercrest Asset Management Group LLC raised its holdings in Adobe by 0.8% during the fourth quarter. Silvercrest Asset Management Group LLC now owns 11,986 shares of the software company's stock worth $5,330,000 after buying an additional 101 shares during the last quarter. Siemens Fonds Invest GmbH raised its holdings in Adobe by 252.9% during the fourth quarter. Siemens Fonds Invest GmbH now owns 55,658 shares of the software company's stock worth $25,000 after buying an additional 39,888 shares during the last quarter. Finally, Sentinus LLC raised its holdings in Adobe by 18.9% during the fourth quarter. Sentinus LLC now owns 497 shares of the software company's stock worth $221,000 after buying an additional 79 shares during the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.