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Dec 15, 2025 4:00 PM

AI Competition And Budget Cuts Cloud Adobe's Growth Outlook

Adobe Inc. (NASDAQ:ADBE) is facing mounting pressure as tightening marketing budgets and shifting enterprise priorities cloud its growth outlook, with new survey data pointing to reduced spending on digital marketing and front-office software even as competition from AI-driven platforms intensifies heading into 2026.

Keybanc analyst Jackson Ader downgraded Adobe from Sector Weight to Underweight and announced a $310 price forecast.

Analyst View

The analyst writes that heading into 2026, Adobe faces similar challenges highlighted earlier.

It includes competition from traditional rivals, emerging AI players, large language model developers, and a prevailing market narrative that will be difficult to overcome, adds the analyst.

The analyst says that their second-half fiscal 2025 CIO survey signals headwinds for ...