Investors are showing strong confidence in Adobe ahead of its Q4 2025 earnings call, with analysts upgrading outlooks and targeting a 12% upside in the stock. The tech giant is poised to report on AI-driven revenue growth and enterprise subscription trends.
- ADBE stock shows 12% projected upside based on median target price of $725
- 14% YoY increase in average revenue per user (ARPU) in Q3 2025
- 92% of revenue from cloud subscriptions in Q3, with expected 18% YoY growth in Q4
- 65% of Creative Cloud users engaged with AI tools in Q3, up from 48% YoY
- 13 of 18 analysts upgraded to 'Buy' or 'Outperform' in last 30 days
- Earnings call scheduled for early January 2026, with AI adoption and enterprise contracts as key focus areas
Adobe Inc. (ADBE) is seeing sustained bullish momentum on Wall Street ahead of its upcoming Q4 2025 earnings report, scheduled for early January 2026. Market participants are focusing on the company’s progress in integrating generative AI across its Creative Cloud and Document Cloud platforms, which are expected to drive recurring revenue growth. Analysts have noted a 14% year-over-year increase in average revenue per user (ARPU) in the trailing quarter, a key indicator of pricing power and product stickiness. The consensus view among major brokerages reflects growing optimism, with 13 of 18 analysts upgrading their ratings to 'Buy' or 'Outperform' in the last 30 days. Target prices have been raised to a median of $725 per share, implying a 12% upside from current levels. This sentiment is underpinned by expectations of continued strength in cloud subscriptions, which accounted for 92% of total revenue in Q3 2025 and are projected to grow 18% year-over-year in the fourth quarter. Adobe’s AI-powered tools, including Firefly and Sensei, are being cited as central to its growth strategy. Internal data suggests that over 65% of Creative Cloud users engaged with at least one generative AI feature in Q3, up from 48% in the same period last year. These adoption metrics, combined with expanded enterprise contracts, signal robust demand across marketing, design, and publishing sectors. The stock’s performance is also being watched in relation to broader market trends in software and AI. A positive earnings release could reinforce momentum in the tech sector, particularly among high-momentum growth stocks. Any guidance suggesting sustained double-digit subscription growth or margin expansion would likely trigger further buying interest, especially among ETFs and institutional portfolios tracking large-cap tech benchmarks.