Adobe raises annual forecast thanks to AI-driven software tools

Adobe surprises with a pleasing upward revision of its annual forecast, supported by continued demand for its AI-powered software tools that generate image and video content. As an experienced player in the creative software market, Adobe's products like Photoshop and Premiere Pro have become essential tools for professionals worldwide. After a weak first quarter with budget constraints and project delays triggered by macroeconomic uncertainties, business seems to be recovering in the second quarter. According to analysts from Jefferies, the demand increased as customers resumed postponed projects and adapted to the changed conditions. Adobe expects revenue for the fiscal year 2025 to be between $23.50 and $23.60 billion, compared to the previous forecast of $23.30 to $23.55 billion. Adjusted earnings per share have been raised to $20.50 to $20.70. CFO Dan Durn emphasized the ongoing investments in AI innovations aimed at increasing customer value and expanding the customer base. With the introduction of Firefly in 2023, Adobe launched tools that enable image and video editing through simple text inputs. Firefly relies on ethically trained imagery from licensed or public domain sources, accelerating creative content creation while ensuring brand safety and copyright compliance. As early as April, Adobe announced the integration of image generation models from OpenAI and Google into its Firefly app. Second-quarter revenue was $5.87 billion, exceeding analyst expectations of $5.79 billion. The outlook for the third quarter also exceeds estimates.