Creative software company Adobe (ADBE) will report its fourth-quarter Fiscal 2025 results on December 10. The stock is down more than 24% so far this year, weighed down by rising AI competition, slow progress in turning new tools into revenue, and cautious guidance from the company. Wall Street analysts expect Adobe to report earnings of $5.40 per share for the fourth quarter of Fiscal 2025, up 12.5% from the year-ago quarter.
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Meanwhile, they project Q4 revenues at $6.11 billion, according to the TipRanks Analyst Forecasts Page. This marks a year-over-year increase of over 9%. It’s important to note that Adobe has outperformed EPS estimates in each of the past nine quarters.
Investors will look to the Q4 results for signs that Adobe can speed up AI monetization and rebuild confidence.
Recent News Ahead of the Q4 Print
On November 19, Adobe agreed to buy Semrush (SEMR) for $12 per share in cash, valuing the company at about $1.9 billion. The transaction is expected to close in the first half of 2026, subject to regulatory and shareholder approvals. Adobe said the move will help strengthen its digital experience business.
Analysts’ Views Ahead of Adobe’s Q4 Print
Ahead of the Q4 report, TD Cowen analyst J. Derrick Wood kept his Hold rating and $420 price target on Adobe. He said partner checks remain steady, and noted that demand for Adobe’s AI tools is picking up even as competition grows. Third-party credit card data showed 4% year-over-year growth, slightly below the prior quarter’s 5%. Wood expects a small beat and guidance in line with the Street, and believes the stock could bounce from current levels given its low valuation.
Meanwhile, Barclays analyst Saket Kalia cut his price target on Adobe to $415 from $465 but kept an Overweight rating ahead of the Q4 report. The 5-star analyst expects solid net-new Digital Media ARR in the quarter. Kalia also sees Adobe ending FY25 with steady total ARR growth and thinks the company could guide to 10%-plus growth for FY26.
In addition, he expects the Semrush deal, expected to close in the first half of 2026, to add a small boost to revenue next year.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.58% move in either direction.
Is ADBE Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 18 Buys and seven Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADBE price target of $465.67 per share implies 37.32% upside potential.
