Adobe (ADBE) is poised for a "solid" start to the year when it reports its fiscal Q1 results on March 12, RBC Capital Markets said in a note Sunday.

The report said some positive momentum was seen in Q3 and Q4 last-year but translating partnerships and strategies to re-accelerating annual recurring revenue remains key to sentiment.

"The number one thing we've heard from investors in terms of getting Adobe to work is seeing re-acceleration," the note said.

While not guided to quarterly, Adobe is expected to deliver total ARR upside to consensus estimate of $25.9 billion. Currently, 2026 guidance is for a 10.2% growth in total ARR, down 130 basis points from a year ago, the report said.

"While Adobe remains a heavily debated name, re-acceleration in ARR seems to be the key metric to both sides," the note said.

RBC kept its outperform rating with a $430 price target.

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