Adobe Inc. (NASDAQ:ADBE) is one of the most profitable tech stocks to buy. On December 4, Citi lowered the firm’s price target on Adobe to $366 from $400, while keeping a Neutral rating on the shares. This announcement was made ahead of the company’s Q4 2025 earnings report. The firm anticipates that the company will slightly exceed its revenue estimates but has lowered its margin forecasts.
In the previous quarter, Adobe achieved record revenue of $5.99 billion in Q3 2025, which marked 10% year-over-year growth. GAAP EPS reached $4.18, which showed an 11% growth and Non-GAAP EPS reached $5.31, which rose by 14%. Reflecting this confidence and momentum, the company raised its full-year 2025 revenue target to a range of $23.65 to $23.70 billion, and its Q4 revenue target to between $6.075 and $6.125 billion.
The company’s performance was driven by its two main segments. The Digital Media segment, which includes Creative Cloud and Document Cloud, generated $4.46 billion in revenue, growing 11% year-over-year. This growth was supported by strong demand for AI-infused offerings, causing the Digital Media ARR to grow 11.7% to $18.59 billion. The Digital Experience segment reported revenue of $1.48 billion, representing 9% year-over-year growth. Critically, Adobe’s internally tracked AI-influenced ARR surpassed $5 billion.
Adobe Inc. (NASDAQ:ADBE) operates as a technology company worldwide. The company has a strategic alliance with HUMAIN for the development of generative AI models and AI-powered applications.
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Disclosure: None. This article is originally published at Insider Monkey.
