Citing a reduction in industry valuation multiples, Oppenheimer decreased its price objective for Adobe (ADBE, Financials) to $530 from $560, keeping an Outperform rating.With first-quarter fiscal 2025 income of $5.71 billion, which exceeded Wall Street's projection of $5.66 billion, Adobe stated it performed amicably in the quarter. With non-GAAP profits per share of $5.08, above the average forecast of $4.97. Slightly above estimates, the company's Digital Media annualized recurring income increased 12.6% year over year. With a 12% annual increase, the remaining performance obligation came out to be $19.97 billion.Even with Adobe's outperformance, Oppenheimer noted a drop in net-new Digital Media ARR and weaker projection for the following quarter. Strong gross profit margins of 89% and annual income increase of 10.8% year over-year were also observed by analysts. The company also underlined better openness in Adobe's income strategy, especially with relation to AI-related contributions and subscription breakdowns.For the first time, Adobe has released AI-specific ARR numbers, therefore offering more understanding of its artificial intelligence division. With further disclosures likely in a forthcoming investor conference, analysts remain wary about how artificial intelligence may affect income.The changes in the price target reflect larger market dynamics when analysts lower expectations even while profits surpass estimates.