Adobe’s AI Breakthrough Fails to Impress Investors

Adobe Inc. has once again delivered exceptional quarterly results, yet the market response remains puzzlingly muted. The San Jose-based software giant reported record third-quarter revenue of $5.99 billion, powered significantly by its artificial intelligence initiatives that have already generated over $5 billion in sales. Despite these impressive figures that would typically propel competitors’ valuations, Adobe shares continue to trade in negative territory for the year.

The company’s Digital Media division, representing Adobe’s core business, expanded by 12 percent to reach $4.46 billion. This segment continues to demonstrate remarkable strength with over 20 million Creative Cloud subscribers, showcasing the powerful retention capabilities of Adobe’s ecosystem. The business and consumer group achieved a 15 percent increase in subscription revenue, while creative and marketing professionals contributed an 11 percent... Read more...