11:01 AM EDT, 09/12/2025 (MT Newswires) -- Adobe's (ADBE) positive earnings report, coupled with the updated guidance, has bolstered confidence in its artificial intelligence strategy, Oppenheimer said in a report Friday.

The software maker posted revenue of $5.99 billion, up 11% from a year earlier and $70 million ahead of Wall Street estimates, the analysts said. Profit excluding items was $5.31 per share, topping expectations of $5.18. Digital Media revenue rose 12% to $4.46 billion, also above forecasts, the report said.

The company's focus on AI is paying off and its "AI-first" annual recurring revenue has doubled in the last six months, and AI-influenced ARR has now exceeded $5 billion. Net-new Digital Media ARR was $500 million, beating analyst estimates, Oppenheimer said.

However, some concerns remain. The company's Q4 revenue guidance of $6.075 billion to $6.125 billion indicates a potential slowdown in growth to single digits. Net-new Digital Media ARR also showed flat year-over-year growth, the report said.

Despite headwinds, Adobe's full-year 2025 guidance has been raised, projecting 11.3% Digital Media ARR growth, revenue of $17.56 billion to $17.59 billion, and earnings of $20.80-$20.85 per share, Oppenheimer said.

Oppenheimer has an outperform rating on Adobe with a price target of $460.

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