Adobe Q1 Earnings Preview

Market Overview

Adobe (ADBE) shares declined on Thursday, March 11, ahead of the company's first quarter financial results, which are scheduled to be released on Thursday, March 12, following the market close. Analysts expect the company to report EPS (earnings) of $5.86 and $6.27 billion in total revenue.

Stock Performance

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As of 1:24 p.m. EDT, Adobe equity was trading at $270.41, down $3.38 or 1.24% from the previous day's close of $273.71. The stock has declined 22% in 2026, following the fourth quarter's disclosure of a 7.2 million share repurchase and record operational cash flow of over $10 billion.

AI-Integrated Services

Adobe's focus has shifted towards its AI initiatives, with AI-affected annual recurring revenue now representing more than one-third of aggregate revenue. The company has introduced various AI-driven features to its products, including an AI assistant for Photoshop, which is launching in beta via the web and mobile applications.

New Features and Capabilities

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The AI assistant for Photoshop can assist users in deleting objects or individuals from pictures, altering hues, or modifying illumination via prompts. Customers can also utilize everyday speech to direct the AI helper to apply soft radiance, crop in a particular layout, improve shadows, or convert the backdrop to provide a distinct appearance to their picture.

Adobe is also introducing a fresh capability named AI markup in open beta, which allows individuals to sketch markers on the display and utilize the AI helper to modify those items. The company is integrating new picture-refining utilities into its Firefly media-development tool, including Generative Fill, generative delete utility, generative expand, and generative upscale utilities. Additionally, Firefly is receiving a one-tap utility to delete the backdrop from pictures.