Adobe (ADBE) Reaffirms AI Leadership With Strong Revenue and Cash Flow, Piper Sandler Reaffirms Outperform Rating

Adobe Inc. (NASDAQ:ADBE) ranks among the best AI stocks to buy according to analysts. Piper Sandler reaffirmed its Overweight rating and $470 price target for Adobe Inc. (NASDAQ:ADBE) on December 11 in response to the company’s fiscal year 2025 results. With a $94 million revenue beat, the software giant outperformed the previous four-quarter average record of $77 million.

Additionally, Adobe Inc. (NASDAQ:ADBE) stated that it anticipates fiscal first-quarter revenue to be between $6.25 billion and $6.3 billion, exceeding Wall Street projections of $6.23 billion. Adobe Inc. (NASDAQ:ADBE) anticipates revenue for the full fiscal year to be around $25.9 billion and $26.1 billion, although analysts projected $25.89 billion.

The software company continued to generate significant cash flow and aggressively repurchased shares, setting its fiscal year 2026 net new Digital Media ARR target at a record $2.6 billion.

According to Piper Sandler, Adobe’s artificial intelligence operations gained solid traction, with AI credit consumption jumping threefold quarter-over-quarter. Meanwhile, the company’s AI-influenced annual recurring revenue has topped $8 billion.

Adobe Inc. (NASDAQ:ADBE) is a software company that specializes in creating, publishing, and promoting digital content. It offers a wide range of tools for professionals and consumers, including Photoshop, Illustrator, Acrobat, and Premiere Pro, which are often bundled in the Adobe Creative Cloud subscription.

While we acknowledge the potential of ADBE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.