Adobe reported strong financial performance in fiscal year 2025, boosting revenue by 11% to over $23.7 billion. Net income jumped nearly 28%.
Despite these gains, Adobe’s stock has plunged almost 50% from its peak. This decline reflects significant market skepticism regarding the company’s future growth driven by artificial intelligence.
Investors remain unconvinced that Adobe's AI initiatives, including Firefly, will create a new growth curve. The market fears these tools will only protect the existing subscription business.
Adobe currently boasts strong enterprise deal momentum and growing AI feature adoption. However, the financial community maintains a "wait-and-see" posture, seeking clearer evidence of successful AI monetization before restoring confidence in the stock.