Adobe (ADBE) reported a 12% revenue growth in its Digital Media segment, reaching $4.35 billion in Q2 2025, driven by AI enhancements across its products. The company launched the Firefly App, enabling users to generate content and introduced an 11x year-over-year increase in usage of Express within Acrobat. Adobe acquired 8,000 new Express for Enterprise customers, including major firms like ServiceNow and Major League Baseball.
Despite growth, Adobe faces competition from Apple and Microsoft, both enhancing their AI capabilities for creative workflows. Apple’s updates to Final Cut Pro and Logic Pro, and Microsoft’s scaling of Microsoft Designer and Copilot aim to capture the same market as Adobe’s tools.
Adobe’s share price has declined 14% year to date, while the broader tech sector has seen a modest gain of 1.8%. The Zacks Consensus Estimate for Adobe’s Q3 fiscal 2025 earnings is $5.16 per share, reflecting a year-over-year growth of 10.97%.
