Adobe's (ADBE) fiscal 2026 annualized recurring revenue guide of 10.2% with minimal margin decretion is based on broad-based momentum, RBC Capital Markets said in a Wednesday note.
The company minimized noise after a solid Q4 beat and rise as management works to improve sentiment around its generative AI roadmap, RBC said.
A key metric for GenAI monetization was consumption credits, which increased threefold sequentially in Q4 on expanded usage of video and custom models.
The brokerage said it reiterated its outperform rating on the stock and price target of $430 per share.
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