Adobe Upgrades CXO With New Solution: Can the Technology Deliver?

Adobe ADBE continues to strengthen its enterprise focus through the Digital Experience segment, which combines creativity, data and AI to help brands deliver personalized and real-time engagement. As enterprises scale investments in marketing automation and content orchestration, the company’s Customer Experience Orchestration (CXO) platform positions it well for long-term growth.

GenStudio and Firefly Services are core to Adobe’s CXO strategy. GenStudio supports campaign planning, content creation and deployment across marketing channels. Firefly enables large-scale asset generation in image, video and 3D formats using the company’s AI models, streamlining production and accelerating personalization.

Adobe recently expanded its CXO platform with new GenStudio capabilities. The upgrade enables automated, on-brand ad deployment across platforms like Meta, Google and LinkedIn. Powered by Firefly Services, the upgrade enhances scalable content generation. The company also introduced LLM Optimizer to improve asset discoverability and Agent Orchestrator to automate campaign execution through AI workflows.

Adobe’s continued product innovation is driving platform engagement. In the second quarter of 2025, monthly active users for Acrobat and Express crossed 700 million, up over 25% year over year. The company also reported 11x year-over-year growth in the adoption of Express features within Acrobat, reflecting strong demand for integrated design and document workflows.

Expanding enterprise adoption is driving Digital Experience growth. In the second quarter of fiscal 2025, segment revenues increased 10% year over year to $1.46 billion, beating the Zacks Consensus Estimate by 1.56%. Subscription revenues from the same rose 11% to $1.33 billion, led by rising adoption of GenStudio and Firefly Services. The figure outperformed the Zacks Consensus Estimate by 0.74%. As demand rises for intelligent, automated content workflows, Adobe expects CXO-led adoption to support recurring revenue momentum in upcoming quarters.

Adobe Faces Rising Competition

Adobe’s digital experience segment is facing stiff competition from Salesforce CRM and HubSpot HUBS, both advancing their AI-driven marketing platforms.

Salesforce is strengthening its position with Marketing Cloud and Data Cloud, offering real-time personalization and campaign orchestration supported by Einstein AI. The deep integration with its Customer Relationship Management (CRM) tools makes Salesforce an integral alternative to Adobe’s CXO-led solutions.

HubSpot is gaining traction among Small-Medium Businesses with its all-in-one CRM suite. Through CMS Hub and Marketing Hub, HubSpot enables content creation, workflow automation and personalized engagement. As HubSpot integrates more AI capabilities, it is becoming a strong alternative to Adobe for businesses seeking intuitive and scalable digital experience tools.

Adobe’s Share Price Performance, Valuation & Estimates

Adobe shares have declined 11.9% year to date, while the broader Zacks Computer & Technology sector has returned 1.2% and the Zacks Computer - Software industry has risen 11.1%.

ADBE Performance

Adobe stock is trading at a premium, with a forward 12-month Price/Sales of 6.79X compared with the Computer and Technology sector’s 6.33X. Adobe has a Value Score of D.

ADBE Valuation

The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $5.08 per share, up by a penny over the past 30 days, indicating 9.25% year-over-year growth.

The consensus mark for Adobe’s fiscal 2025 earnings is pegged at $20.36 per share, which has been unchanged over the past 30 days. The figure indicates 10.53% growth over fiscal 2024.

Adobe Inc. Price and Consensus

 

Adobe Inc. price-consensus-chart | Adobe Inc. Quote

Adobe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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