Adobe focuses on monetizing its Firefly generative AI tools. The company reports significant growth in its AI-first Annual Recurring Revenue (ARR). Adobe's strategy emphasizes enterprise adoption. Its Firefly Foundry platform enables businesses to create custom, on-brand AI models trained on their own assets.
This strategy yielded results. Direct AI-related ARR climbed to over $650 million as of the third quarter.
Adobe's stock underperformed in 2026 amid a broader market debate. Analysts express caution. They note a freemium model, designed to attract new users, coincided with a slowdown in the growth of overall net new recurring revenue.