Overview
- Google’s redesigned Stitch platform, pitched as an AI tool that turns plain‑language prompts into production‑grade interfaces, pressured Adobe shares, which traded near 52‑week lows on Wednesday.
- Longtime chief executive Shantanu Narayen said he will step down after nearly two decades, remaining CEO until a successor is named and continuing as chairman.
- Adobe reported record fiscal Q1 results: revenue of $6.40 billion up 12% year over year, adjusted EPS of $6.06, ARR of $26.06 billion, and record operating cash flow of $2.96 billion.
- AI‑first ARR more than tripled year over year and Firefly generative credit consumption rose 45% quarter over quarter, reflecting rapid uptake of new AI features.
- Analyst views remain split as shares fall more than 25% this year, with moves including UBS cutting its target to $290, RBC reiterating $430 and Outperform, Citi lowering to $278 with Neutral, and Goldman setting $220 with Sell.