Citi Lowers Adobe Price Target Ahead Earnings

On December 4, Citi cut Adobe's price target to $366 from $400 and kept a Neutral rating ahead of Q4 2025 earnings. Adobe posted record Q3 2025 revenue of $5.99 billion, up 10% year-over-year, raised full-year guidance to $23.65–$23.70 billion, but trimmed margin forecasts. Digital Media revenue grew 11% to $4.46 billion and AI-influenced ARR topped $5 billion.
Key Points
- 1Reports record Q3 revenue of $5.99 billion, 10% growth; Digital Media revenue $4.46 billion
- 2Highlights AI demand—Digital Media ARR rose 11.7% and AI-influenced ARR exceeded $5 billion
- 3Monitor margin pressure despite raised revenue guidance; evaluate AI monetization and segment profitability trends
Scoring Rationale
Solid official earnings and AI-driven ARR growth support relevance, limited by being a company-specific analyst update rather than systemic shift.
Sources
Public references used for this report.
Practice with real Ad Tech data
90 SQL & Python problems · 15 industry datasets
250 free problems · No credit card
See all Ad Tech problems
