Adobe Stock Price Target: UBS Maintains $255 Target After Record Q3 Results

• UBS maintained a Neutral rating and a $255 price target for Adobe, representing approximately 2.5% upside from its September 10 closing price.
• Adobe (NASDAQ: ADBE) reported record third-quarter revenue of $6.76 billion, while AI-first annualized recurring revenue grew by more than 150%.
• Adobe raised its full-year non-GAAP earnings outlook to between $24.45 and $24.50 per share, although its fourth-quarter revenue forecast was slightly below analysts' expectations at the midpoint.

UBS analyst Karl Keirstead maintained a Neutral rating and a price target of $255 for Adobe. The target represents potential upside of approximately 2.5% from Adobe's closing price of $248.83 on September 10, 2026. Adobe is a California-based software company known for products such as Photoshop, Illustrator, Acrobat, and its Digital Experience platform.

The analyst update followed Adobe's strong fiscal third-quarter performance. The company reported record revenue of $6.76 billion, exceeding analysts' average estimate of approximately $6.70 billion. Revenue increased 13% year over year, supported by demand for Adobe's creative, productivity, and customer-experience products.

Adobe's AI-focused offerings continued to expand, with AI-first annualized recurring revenue growing by more than 150% year over year. ARR represents the annualized value of recurring subscriptions at a particular point in time, rather than guaranteed revenue for the following 12 months. The growth indicates rising adoption of Adobe's AI-first products and services.

Adobe also announced that it had surpassed 1 billion monthly active users across its creativity and productivity products. Following its third-quarter performance, the company raised its full-year revenue forecast to between $26.58 billion and $26.63 billion. It now expects non-GAAP earnings of $24.45 to $24.50 per share, while GAAP EPS is projected at $18.12 to $18.17.

Despite the strong quarterly results and higher full-year guidance, Adobe shares declined approximately 2% to 3% following the announcement. The company forecast fourth-quarter revenue of $6.80 billion to $6.85 billion. The midpoint of $6.825 billion was slightly below analysts' expectations of approximately $6.85 billion, reinforcing concerns about competitive pressure and Adobe's ability to sustain its growth as the creative-software market evolves.