Analysts Predict 20%+ Upside for Adobe Stock Ahead of Q2 Earnings

Tech company Adobe (ADBE) is set to release its second-quarter Fiscal 2025 results on June 12. The stock has dropped over 9% in the past year, mainly due to cautious revenue guidance, slow AI-related gains, and rising competition. Despite the recent dip, Wall Street analysts see over 20% upside for the creative software company over the next 12 months.

Also, RBC Capital analyst Matthew Swanson remained upbeat about the stock ahead of the Q2 print. He reiterated his $480 price target on the stock, which suggests more than 15% upside from current levels. The analyst believes that while a strong earnings print is important to drive the stock higher, Adobe also needs to give investors a clearer picture of how its AI tools will fuel future growth.

What to Expect from Adobe’s Q2 Earnings

Wall Street analysts expect Adobe to report earnings of $4.97 per share for the second quarter of Fiscal 2025, up 10.9% from the year-ago quarter. Meanwhile, analysts project Q2 revenues at $5.8 billion, according to the TipRanks Analyst Forecasts Page. This marks a year-over-year increase of over 9%. The growth is driven by strong demand for Creative Cloud and Document Cloud services, ongoing strength in its Digital Experience segment, and early gains from AI-powered tools and tiered pricing strategies.

Analyst’s Views Ahead of Q2 Print

Swanson expects Adobe to deliver solid Q2 results. He noted that while the stock has underperformed big tech peers, investor sentiment seems to be improving at current levels.

The analyst pointed to Adobe’s tiered pricing and use of generative credits, especially in video, as early steps toward better AI monetization. It is worth noting that recently Adobe introduced a new tiered pricing structure for individual users. The standard plan price was lowered by around 9%, while the pro plan rose by up to 18%. This aligns with Adobe’s plan to grow its high-end products while keeping lower-tier options affordable.

For now, Swanson remains confident in Adobe’s long-term potential, sticking with his $480 price target.

Is ADBE Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 21 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADBE price target of $516.48 per share implies 23.88% upside potential.

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