Adobe’s AI-Powered Creative Tools Drive Growth Amid Intensifying Competition from Apple and Microsoft

Adobe Enhances AI Integration to Boost Creative Workflows and Recurring Revenue

Adobe (ADBE) is stepping up its use of generative AI across its Digital Media products to help creatives work faster and support steady revenue growth. Tools like Firefly, Acrobat AI Assistant, and Express are being built deeper into creative processes, assisting enterprises, individuals, and small teams to produce content more efficiently.

The newly released Firefly App offers a unified interface for creating and editing images, videos, vectors, and audio. A mobile version also extends these creative tools on the move. These updates come after the launch of Firefly Image Model 4 Ultra and the Firefly Video Model, which enables 4K video generation from simple text prompts, fueling momentum in Adobe Express.

Additional features like Animate from Audio and Clip Editor are boosting content production, while integrations with Google Ads and Vimeo improve content distribution. Notably, Express usage within Acrobat surged nearly 11 times year-over-year in Q2 2025, driven by demand for embedded design tools. Adobe also onboarded 8,000 new Express for Enterprise customers, including well-known names like ServiceNow, Workday, and Major League Baseball.

AI Adoption Grows Among Enterprise Teams

Adobe’s AI-powered tools are gaining traction with enterprise clients. Newell Brands uses Firefly and Express to streamline its content supply chain, while Cisco and Ulta Beauty are expanding Adobe’s AI tools throughout their creative workflows. These efforts contributed to a 12% revenue increase in the Digital Media segment, which hit $4.35 billion in Q2. Adobe expects AI-driven products to sustain its annual recurring revenue growth over the long term.

Competition Heats Up in AI-Powered Creative Tools

Adobe faces stiff competition from Apple and Microsoft, both advancing AI-enhanced creative platforms suited for individuals and small teams. Apple is upgrading Final Cut Pro and Logic Pro with AI features like voice isolation and text-to-video generation, overlapping with Adobe Express and Firefly in speed and precision.

Microsoft is scaling Microsoft Designer and embedding Copilot across Office apps to automate content creation, letting users quickly generate visuals, presentations, and documents with AI. Given Microsoft 365’s large user base, this deepens competition against Adobe’s Express and Acrobat workflows.

Adobe’s Stock Performance and Financial Outlook

Adobe shares have declined 14% year to date, compared with a 1.8% gain in the broader Computer & Technology sector and a 12% rise in the Computer-Software industry. The stock trades at a premium, with a forward 12-month Price/Sales ratio of 6.58X versus the sector’s 6.34X, and carries a Value Score of C.

The Zacks Consensus Estimate for Adobe’s Q3 fiscal 2025 earnings stands at $5.16 per share, a 10.97% increase year-over-year and up 9 cents in the past month. The fiscal 2025 earnings consensus is $20.60 per share, indicating 11.83% growth over fiscal 2024, with a recent upward revision of 24 cents. Adobe currently holds a Zacks Rank #2 (Buy).

For creatives looking to stay ahead with AI tools, exploring courses on generative AI and creative workflows can be valuable. Resources like Complete AI Training’s latest AI courses offer practical guidance on integrating AI into creative projects.