Adobe's (ADBE) fiscal Q4 results show solid execution but its 2026 outlook with stronger revenue and weaker margins does little to shift broader debates on valuation or competitive positioning, Oppenheimer said in a Thursday note.

The company issued fiscal Q1 guidance above consensus and the management expects 10% revenue growth and adjusted EPS of $5.85 to $5.90, compared with the FactSet estimate of $5.83.

The company's management issued fiscal Q1 guidance above consensus and forecasted 10% revenue growth. It expects adjusted EPS of between $5.85 and $5.90, compared with FactSet estimates of $5.83.

Adobe's guidance exceeded expectations for fiscal 2026, with a record $2.6 billion net-new Digital Media annual recurring revenue, or ARR, target and projected ARR growth of 10.2% year-over-year. Oppenheimer said this is 150 basis points above consensus.

Artificial intelligence-influenced ARR now exceeds $8 billion, according to the note.

Total subscription revenue for creative, marketing, and business segments is projected to rise between 9% and 14% in 2026, while the full-year adjusted operating margin of 45% reflects margin pressure amid increased AI-related investments.

Oppenheimer maintained its outperform rating on the stock but lowered its price target to $430 from $460.

Shares of Adobe were up 3.5% in recent trading.

Price: 355.26, Change: +12.13, Percent Change: +3.54