Adobe’s ADBE prospects are expected to benefit from an expanding partner base that includes the likes of Amazon Web Services (AWS), Microsoft Azure and Copilot, Google Gemini, HUMAIN, OpenAI and others. ADBE’s Firefly, Express and Creative Cloud applications currently integrate models from partners, including Google, OpenAI, Black Forest Labs, Luma, Runway, Topaz Labs and Eleven Labs.
Adobe’s launch of Premiere Mobile in the fourth quarter of fiscal 2025 strengthened its footprint as a leading provider of next-generation AI video editing. The company announced a partnership with Google and YouTube, which is helping creators receive Adobe Premiere’s video editing tools in a new content creation space called Create for YouTube Shorts at the Premiere mobile app. Expansion of ad network partnerships with Amazon, Google, LinkedIn, Microsoft, Snap and TikTok is a key catalyst for Adobe.
The company has recently entered into a strategic partnership with Runaway, where ADBE will utilize Runaway’s video technology, along with its own creative tools, to develop the next generation of video workflows. Adobe will be Runaway’s preferred API creativity partner, which will help ADBE’s customers get access to Runaway’s latest models. Its latest models, including Runaway’s new GEN-4.5, which are available only in Adobe Firefly, will be available to all ADBE’s clients.
Apart from an expanding partner base, Adobe’s strategy of infusing AI into its portfolio is driving growth, as reflected by the fourth-quarter fiscal 2025 results. Adobe exited the year with annual recurring revenues (ARR) of $25.2 billion, indicating 11.5% year-over-year growth, and management expects it to continue to rise to $25.6 at the end of fiscal 2026. The Semrush acquisition is expected to further boost Adobe’s ARR growth.
ADBE’s AI business is minuscule compared with Microsoft MSFT and Alphabet GOOGL.
Microsoft’s Intelligent Cloud revenues are benefiting from growth in Azure AI services and a rise in the AI Copilot business. Microsoft now has 900 million monthly active users of AI features across its products, with over 150 million monthly active users of first-party Copilots. More than 90% of the Fortune 500 now use Microsoft 365 Copilot, with major customers deploying tens of thousands of seats.
Alphabet’s focus on leveraging AI to drive growth is a key catalyst. AI is infused heavily across its offerings, including Search and Google Cloud. AI Overviews and AI Mode are driving overall queries and commercial queries. AI Mode is now available in more than 40 languages globally and has more than 75 million daily active users. GOOGL added 100 improvements to AI Mode in the third quarter of 2025.
