Software company Adobe (ADBE) is set to release its third-quarter Fiscal 2025 results on September 11. The stock has dropped over 19% year-to-date, hurt by rising AI competition, slow progress in monetizing new tools, and cautious guidance. Wall Street analysts expect Adobe to report earnings of $5.18 per share for the third quarter of Fiscal 2025, up 11.4% from the year-ago quarter.
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Meanwhile, revenues are expected to grow by 9% from the year-ago quarter to $5.92 billion, according to data from the TipRanks Forecast page. It’s important to note that Adobe has outperformed EPS estimates in each of the past nine quarters.
Investors will look to the Q3 results for signs that Adobe can speed up AI monetization and rebuild confidence.
Analysts’ Views Ahead of Adobe’s Q3 Print
Ahead of the Q3 report, Deutsche Bank analyst Brad Zelnick reiterated a Hold rating and a $475 price target on Adobe. The 5-star analyst expects stable results but noted that software stocks remain under pressure from weak sentiment around AI. Zelnick said Wall Street expects Digital Media growth slightly above seasonal trends, though below last year’s third quarter, which benefited from a one-time large deal. He also pointed to Adobe’s recent Creative Cloud pricing changes, which could boost revenue. However, he sees no major upside in the near term.
Meanwhile, Mizuho analyst Gregg Moskowitz lowered his price target on Adobe to $460 from $530 but kept an Outperform rating. The analyst expects Adobe to post modest revenue upside and slight Digital Media ARR growth, supported by strong large-deal activity. He also expects management to reiterate its full-year ARR guidance of 11% growth.
According to Main Street Data, Adobe’s Total Digital Media ARR rose to $18.09 billion in Q2 FY25, up 12.1% year-over-year, driven by strong demand for AI-powered tools like Firefly.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 8.74% move in either direction.
Is ADBE Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 21 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADBE price target of $479.04 per share implies 33.56% upside potential.
