Adobe Systems (ADBE) is likely to post “solid” fiscal Q1 results with an upside to digital media annualized recurring revenue, RBC Capital Markets said in a note e-mailed on Monday.
The software maker is scheduled to report fiscal Q1 results on Thursday. RBC projects non-GAAP earnings at $4.36 per share on revenue of about $5.13 billion.
“While results should be positive, sentiment remains on the drivers of the results, specifically the incremental benefit from GenAI models and runway for future model rollouts particularly video, which has become a growing topic of investor interest following competitive product launches,” RBC analysts, including Matthew Swanson, said.
The brokerage maintained its outperform rating on the stock, with a price target of $650.