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Adobe stock seen rebounding 35% in 12 months amid strong AI growth and solid earnings

Analyst Insights
13 May 2026
24/7 Wall Street
View Source
Bullish
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Adobe's stock has dropped nearly 40% over the past year despite strong Q1 FY26 results, including revenue growth and tripling AI-related annual recurring revenue. The stock trades at a low valuation with a 24/7 Wall St. price target of $326.26, implying a 35.47% upside over the next year. Key risks include competition from AI-native design tools and CEO succession uncertainties, but the company's accelerating AI monetization and solid subscription revenue make the risk-reward favorable. Longer-term projections show continued growth if Adobe successfully integrates AI and completes its Semrush acquisition.

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