What Analysts Think of Adobe’s Stock Ahead of Earnings

Key Takeaways

• Adobe is scheduled to report earnings Wednesday after the market closes, with revenue and profits expected to rise about 10% from the same time last year.
• Analysts are largely bullish on Adobe stock, expecting it to recover from the lows it saw earlier this year and return to positive territory for 2024.
• Adobe stock has experienced large moves after its quarterly reports this year, moving lower after the first and third quarters and higher following the second quarter.

Adobe (ADBE) is set to report earnings for the fourth quarter of fiscal 2024 after the bell Wednesday, with analysts expecting higher revenue and profits as Adobe closes its fiscal year.

Analysts are mostly bullish on the Photoshop and other software maker’s stock, with the 15 analysts tracked by Visible Alpha divided between 11 “buy” ratings, with three “hold” ratings and one “sell” rating. The average price target of $619, roughly 12% above Friday’s closing price, suggests analysts believe Adobe stock can recover from its lows this year to return to positive territory for 2024.

Adobe is expected to report $5.54 billion in revenue for the quarter, with net income projected at $1.63 billion, each about 10% above the fourth quarter of 2023.

Q4 Report Closes Out Volatile Year for Adobe Stock

Adobe stock has moved sharply following each of its quarterly reports this year, falling twice and rising once. Shares fell 13% and 8% after Adobe’s first and third quarter reports, respectively, and surged 14.5% after its second quarter report.

Adobe’s quarterly results beat estimates in each report, but softer-than-expected outlook for the following quarter likely overshadowed the earnings beats in the first and third quarters as shares fell.

After last quarter’s report, analysts that remained bullish said they expected Adobe’s fourth-quarter projections were likely conservative and could be beaten, and said the software maker’s earnings could get a boost from its artificial intelligence (AI) products heading into 2025.

Adobe shares were little changed around $555.76 Monday morning, and are down about 7.3% from where they started the year.