Adobe Q3: AI Is Starting To Pay Off

Kenio Fontes 3.16K Followers Follow Summary Adobe remains attractively valued, trading at a 10x earnings multiple with robust double-digit revenue and EPS growth. ADBE's Q3 results were solid but not surprising; AI-first revenue surged 150% YoY, while total ARR grew 11.2%, reflecting healthy business momentum. Freemium MAUs reached 100 million, up 70% YoY, signaling both growth opportunity and new monetization challenges amid evolving competition. Despite ongoing business model risks, current valuation and execution justify a continued buy rating, supported by strong earnings yield and buybacks. Getty Images In my last article , Adobe ( ADBE ) stock was trading around $202. I called it “too cheap to ignore.” I don't think the case has changed much; Adobe is still a company with many risks and that still needs to prove This article was written by Kenio Fontes 3.16K Followers Follow Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.