Adobe’s ($ADBE) latest results show the bear case is broken — AI isn’t killing Adobe, it’s powering its next growth chapter.
📊 Key Highlights
- Revenue: $5.99B (+10% YoY)
- EPS: $5.31 (+14% YoY)
- Raised full-year guidance
- AI ARR surpassed $5B (from $3.5B last year)
🔥 Strategy: The “Switzerland of AI”
Adobe integrates all leading AI models (Google Gemini, OpenAI, Runway, Pika) directly into its apps. Why leave Photoshop when every tool is already inside?
📌 Hidden Giant: Acrobat
- AI Assistant units +40% QoQ
- Acrobat/Express MAUs +25% YoY
- Turning trillions of PDFs into interactive AI hubs
🏢 Enterprise Growth
GenStudio (Content Supply Chain) → already $1B ARR, +25% YoY.
💰 Financials
- $2.2B cash flow from ops
- $2.5B buybacks in Q3
🚀 Conclusion
Adobe with AI is not in danger — it IS the danger. The moat is expanding, and the market will eventually have to re-rate the stock.
