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Adobe Inc. (ADBE) shares have decreased by 10.4% in the past month, contrasting with Zacks Computer and Technology sector’s growth of 1.3% and the Zacks Computer – Software industry’s increase of 0.1%. This decline is attributed to intensified competition in the AI space from companies like Microsoft, Alphabet, and Salesforce.
In its third fiscal quarter of 2025, Adobe reported that annual recurring revenues (ARR) from AI-powered products exceeded $5 billion, and revenue guidance was raised to between $23.65 billion and $23.7 billion for fiscal 2025. Adobe’s anticipated non-GAAP earnings per share are now estimated to be between $20.80 and $20.85, up from prior guidance.
Competition remains fierce, with Microsoft and Alphabet showing year-over-year revenue growth rates of 18.1% and 13.8%, respectively. In contrast, Adobe’s growth was reported at 10.7%, highlighting the challenges it faces in maximizing profitability amidst a competitive landscape.
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