Adobe falls despite strong outlook as brokerage flags lower margin guide

Photoshop creator Adobe ADBE.O stock fall nearly 1% to $340.69 premarket

Co forecasts fiscal 2026 revenue, profit above Wall Street expectations on strong demand for its design tools, AI offerings

Baird trims PT to $410 from $425, maintains "neutral" stance; says expectations muted past several quarters, although revenue guidance better than feared

However, lower margin guide vs Street is reflective of ongoing product and GTM (go-to-market) investments, and focus could shift to ADBE needing to give up margin to go after growth- Baird

Co's Q4 revenue of $6.19 billion beat $6.11 billion estimates

Average rating of 40 analysts is "buy"; median PT $440- data compiled by LSEG

Stock down nearly 23%, as of last close, YTD