Adobe Inc (NASDAQ:ADBE) has a trend of seeing shares decline after recent earnings reports. The company looks to reverse the trend when it reports fourth-quarter financial results Wednesday after market close.

Here are the earnings estimates, what analysts are saying ahead of the report and key items to watch.

Earnings Estimates: Analysts expect Adobe to report fourth-quarter revenue of $6.11 billion. That’s up from $5.61 billion in last year's fourth quarter, according to data from Benzinga Pro.

The company beat analyst estimates for revenue in three straight quarters and in nine of the last 10 quarters overall.

Adobe set a record for quarterly revenue with $5.99 billion in the third quarter of the current fiscal year. Analysts expect the company to set a new quarterly record and top $6 billion for the first time.

Analysts expect Adobe to report fourth-quarter earnings per share of $5.39, up from $4.81 in last year's fourth quarter.

The company has beaten analyst estimates for earnings per share in three straight quarters and in nine of the last 10 quarters overall.

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What Adobe Analysts Are Saying

JPMorgan analyst Mark Murphy, in a new investor note, maintains an Overweight rating with a $520 price target.

"We believe this feedback helps provide a differentiated, on-the-ground view of trends that we expect to drive fundamentals for Adobe over the next 12-18 months," Murphy said.

Interviews conducted with Adobe customers highlight the company's stickiness. Murphy said interviews included discussions on customer spending, AI, consolidation and digital modernization.

"The feedback is healthier than investors likely appreciate,” he added.

Also, Adobe tends to give conservative guidance for the start of fiscal years.

"We view ADBE shares as materially undervalued while understanding that investors have not yet identified a turning point for the application software complex."

The analyst's conversations found companies cutting costs elsewhere to maintain their Adobe subscriptions and in some cases increase spending with the company. The findings also show customers reacting positively to Adobe's Firefly AI platform.

"We continue to lean favorably on Adobe fundamentals given its fairly durable growth rates, incremental AI monetization opportunities over time, and largely favorable customer and partner checks."

Here are other analyst ratings on Adobe and their price targets:

• Stifel: Maintained Buy rating, lowered price target from $480 to $450
• Citigroup: Maintained Neutral rating, lowered price target from $400 to $366
• DA Davidson: Maintained Buy rating, with price target of $500
• Mizhuo: Maintained Outperform rating, lowered price target from $410 to $390
• Wells Fargo: Maintained Overweight rating, lowered price target from $470 to $420

Key Items to Watch: Adobe's latest earnings report comes after the company announced a deal to acquire SEMrush Holdings Inc (NYSE:SEMR) for an equity value of $1.9 billion.

Adobe said the acquisition will help with GEO (generative engine optimization) to help brands. Semrush had 33% year-over-year recurring revenue growth for its enterprise segment in its most recently reported quarter.

Murphy said in a previous note that the Semrush deal can give Adobe key advantages for its customers and also allow the larger company to unlock the enterprise scale that Semrush couldn't hit on its own.

The analyst said Semrush has focused on the smaller portion of the market and has recently made strong strides with enterprise customers, an area where Adobe will be able to help.

Adobe continues to make more strides in the AI sector and is likely to highlight that in the quarterly results. The company recently announced a partnership with PIF-backed HUMAIN for AI solutions in Saudi Arabia.

Analysts and investors will be eagerly awaiting more commentary on how the company is growing its suite of AI-related products and what customer feedback has been.

Adobe has a recent history of beating analyst estimates, but it has not translated to rallies for the share price.

Prior to the third quarter, Adobe stock had traded down after eight of its last nine earnings reports.

The third-quarter results saw shares trade higher. Adobe stock closed at $350.55 on Sept. 11 ahead of earnings. Shares opened for trading at $361.10 the following day, trading higher, but ultimately fell and closed at $349.36.

ADBE Price Action: Adobe stock is up 1.9% to $345.63 on Tuesday versus a 52-week trading range of $311.58 to $552.83. Adobe shares are down 21.6% year-to-date in 2025.

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