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Yesterday, Adobe (Nasdaq: ADBE) reported its quarterly results that were ahead of market expectations. The stock has not had a good run so far this year, having dropped 21% so far on worries that “AI is eating software”. Analysts believe that AI will make the infrastructure companies more valuable and SaaS companies will suffer. Adobe is addressing the concern by aggressively integrating AI features into its Creative Cloud products, developing its own generative AI platform called Firefly, and expanding into enterprise AI solutions.
 

Adobe’s Financials

Adobe’s third quarter revenues grew 11% to $5.99 billion, ahead of the market’s estimates of $5.91 billion. Adjusted EPS of $5.31 also beat analyst estimates of $5.18.

During the quarter, Digital Media segment revenues grew 12% over the year to $4.46 billion. Digital Media Annualized Recurring Revenue grew 11.7% to $18.59 billion. Digital Experience segment revenue grew 9% to $1.48 billion. Digital Experience subscription revenue grew 11% to $1.37 billion.

For the fourth quarter, Adobe expects revenue of $6.08-$6.13 billion and an EPS of $5.35-$5.40. The market was looking for revenues of $6.08 billion and an EPS of $5.34. It expects digital media revenue for the fourth quarter will be $4.56-$4.51 billion, ahead of the $4.51 billion average estimate.
 

Adobe’s Agentic AI Focus

Earlier this year, Adobe announced the general availability of AI agents to improve how organizations build, deliver, and optimize customer experiences and marketing campaigns. Powered by the Adobe Experience Platform (AEP) Agent Orchestrator, Adobe is also creating an AI platform for businesses to manage and customize agents both from Adobe and across third-party ecosystems. The platform will help agents understand context, plan multi-step actions, refine responses, and perform higher end processes.

The AEP Agent Orchestrator includes a reasoning engine that uses decision science and language models to interpret natural language inputs and trigger relevant agents based on user intent. This orchestration layer is designed to support dynamic, context-driven automation with optional human oversight. The capability will be embedded into core Adobe products like Real-Time CDP, Adobe Experience Manager, Journey Optimizer, and Customer Journey Analytics.

Adobe is also rolling out a set of prebuilt agents targeted at specific enterprise functions. For instance, the Audience Agent will focus on segmentation and activation, Journey Agent on cross-channel journey building and optimization, Experimentation Agent on test performance analysis, and Data Insights Agent on aggregating and forecasting CX signals.

Additional agents include Site Optimization Agent for web performance issues and Product Support Agent for customer service tasks. Adobe plans to offer further customization capabilities through, where businesses can modify agent behavior based on internal guidelines and integrate agent workflows through SDKs and registries. Adobe has also announced partnerships with Cognizant, Google Cloud, PwC, Medallia, and others to extend interoperability and deployment flexibility across industries and enterprise systems.

Adobe also launched Acrobat Studio, a new product that integrates Acrobat, Adobe Express, and a suite of AI agents to streamline document productivity and content creation. The platform converts static PDF files into interactive knowledge hubs where users can query content, generate summaries, extract insights, and create visual outputs using Adobe Express and Firefly-powered tools.

The offering reflects Adobe’s shift from a document utility model to a unified productivity and creativity workspace, anchored by AI and agent-based workflows. These assistants can answer questions, synthesize insights, and generate citations. Adobe also offers prebuilt AI agents embedded within its tools and plans to make these configurable through Agent Composer.

Meanwhile, Adobe’s stock is trading at $350.55 with a market capitalization of $148.7 billion. It touched a 52-week high of $587.75 in December and a 52-week low of $330.04 in August.

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