Creative software company Adobe (ADBE) is set to release its third-quarter Fiscal 2025 results on September 11. The stock has dropped over 23% year-to-date, hurt by rising AI competition, slow progress in monetizing new tools, and cautious guidance. Some analysts are hopeful, citing steady demand for Adobe’s creative tools and potential growth from tiered pricing and new products like video and 3D. Meanwhile, others stay cautious, noting slow gains from Adobe’s own AI launches. Overall, Wall Street remains cautiously optimistic about the stock ahead of Q3 earnings.
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What to Expect from Adobe’s Q3 Earnings
Wall Street analysts expect Adobe to report earnings of $5.18 per share for the third quarter of Fiscal 2025, up 11.4% from the year-ago quarter. Meanwhile, analysts project Q3 revenues at $5.91 billion, according to the TipRanks Analyst Forecasts Page. This marks a year-over-year increase of over 9%.
Investors will look to the Q3 results for signs that Adobe can speed up AI monetization and rebuild confidence.
Analysts Remain Divided Ahead of Q3
Ahead of the Q3 print, RBC Capital analyst Matthew Swanson kept an Outperform rating and a $480 price target on Adobe. He said the creative tools market has become more crowded with new AI-driven platforms, but Adobe is adapting by adding more choice through Firefly and improving its mobile trends. Swanson sees the main opportunity for Adobe in generative editing rather than content creation. He also points to tiered pricing and advanced tools like video and 3D as key drivers of future GenAI growth.
According to Main Street Data, Adobe’s Total Digital Media ARR rose to $18.09 billion in Q2 FY25, up 12.1% year-over-year, driven by strong demand for AI-powered tools like Firefly.
Meanwhile, Melius Research analyst Ben Reitzes downgraded the stock to Sell with a $310 price target, implying an 11% downside from current levels. Reitzes argues that investors may find better opportunities in “infrastructure winners” such as Microsoft (MSFT) and Oracle (ORCL).
Is ADBE Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 19 Buys, six Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADBE price target of $480.88 per share implies 37.99% upside potential.
