Adobe: The Most Overlooked AI Turnaround In The Market (Rating Upgrade)

Julia Ostian
4.1K Followers

Summary

  • Adobe is upgraded from Hold to Buy as management actively addresses existential AI threats and repositions for growth.
  • ADBE posted 10% Q4 revenue growth, driven by AI-powered tools, and targets 10% revenue and ARR growth for FY2026.
  • Strategic partnerships with OpenAI, Microsoft, and Google, plus the Semrush acquisition, expand ADBE’s relevance and future revenue streams.
  • Valuation has likely bottomed out, with strong cash flows, aggressive share repurchases, and a forward-thinking management team executing on new opportunities.

Man with Apple Pencil holding in the hand iPad Pro

Prykhodov/iStock Editorial via Getty Images

Introduction

There are not many authors on Seeking Alpha who rate Adobe Inc. (ADBE) stock anything other than a Buy, and for a significant period, I have been one of those dissenting voices who had

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About ADBE Stock

SymbolLast Price% Chg
ADBE
347.89-0.93%
Post346.95-0.27%
Chart
Chart with 160 data points.
The chart has 1 X axis displaying Time. Data ranges from 2025-12-11 09:30:00 to 2025-12-16 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 344.2 to 362.435.
End of interactive chart.
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Related Stocks

SymbolLast Price% Chg
ADBE
347.89-0.93%
Post:346.95-0.27%
ADBE:CA
13.51-1.03%
ZADB:CA
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Chart
Line chart with 2 lines.
The chart has 1 X axis displaying Time. Data ranges from 2025-12-11 09:30:00 to 2025-12-16 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from -1.18 to 4.22.
End of interactive chart.
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Reference ID: 2f1e5260-db23-11f0-b9ff-15f974b98db8