Stock Analysis

Analyst Estimates: Here's What Brokers Think Of Adobe Inc. (NASDAQ:ADBE) After Its Second-Quarter Report

Adobe Inc. (NASDAQ:ADBE) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of US$5.9b and statutory earnings per share of US$3.94 both in line with analyst estimates, showing that Adobe is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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NasdaqGS:ADBE Earnings and Revenue Growth June 27th 2025

Following the latest results, Adobe's 38 analysts are now forecasting revenues of US$23.6b in 2025. This would be an okay 4.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$16.20, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$23.6b and earnings per share (EPS) of US$16.05 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Adobe

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$493. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Adobe at US$605 per share, while the most bearish prices it at US$380. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Adobe's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that Adobe is also expected to grow slower than other industry participants.

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The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Adobe's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$493, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Adobe going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Adobe's balance sheet, and whether we think Adobe is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.