Adobe: The Relentless Focus on Generative AI Is Producing Innovation and Spurring Adoption

Wide-moat Adobe's upbeat investor session focused mainly on artificial intelligence innovation and monetization, along with its new customer-focused strategy. Management stopped short of declaring concrete long-term financial targets, but did provide some details consistent with our model for the next five years. Thus, we hold our model steady and keep our fair value estimate of $590 per share. Shares remain attractive, in our view. We continue to view Adobe as the clear leader in software solutions for the creative industry and believe the company is well-positioned to capitalize on the ongoing shift toward generative AI. Adobe Summit 2025 reinforced this thesis, in our view.