Adobe Deepens AI in Creative Workflows: Is ARR Growth Set to Scale?
From Nasdaq: 2025-06-25 11:10:00
Adobe is expanding generative AI across its Digital Media offerings to improve productivity and support revenue growth. Firefly, Acrobat AI Assistant, and Express are being embedded into creative workflows for more efficient content generation.
Innovation and deeper AI integration drive growth for Adobe. New Firefly App allows users to edit images, videos, vectors, and audio, while a mobile version extends creative capabilities. Adobe’s AI-led offerings are expected to drive sustained ARR momentum in the long term.
Adobe faces competition from Apple and Microsoft in AI-powered creative workflows. Apple upgrades Final Cut Pro and Logic Pro with AI features, while Microsoft scales Designer and Copilot across Office apps for automated content creation.
Adobe shares have declined 14% YTD, trading at a premium with a forward 12-month Price/Sales of 6.58X. The Zacks Consensus Estimate for Q3 2025 earnings is $5.16 per share, indicating 10.97% YoY growth.
The consensus mark for Adobe’s fiscal 2025 earnings is $20.60 per share, up by 24 cents over the past 30 days. Adobe currently carries a Zacks Rank #2 (Buy) and is expected to grow by 11.83% over fiscal 2024.
To access all Zacks’ picks for just $1, with no obligation, thousands have taken advantage of this opportunity. Zacks offers portfolio services like Surprise Trader, Stocks Under $10, and Technology Innovators that closed 256 positions with double- and triple-digit gains in 2024.
Read more at Nasdaq: Adobe Deepens AI in Creative Workflows: Is ARR Growth Set to Scale?