Adobe shares decline 1.24% ahead of first quarter results

Adobe shares declined on Thursday in expectation of its first quarter financial results on Thursday, March 12. The Photoshop developer will report quarterly performance following the market's close.

Analysts anticipate EPS (earnings) of $5.86 alongside $6.27 billion in total revenue.

Stakeholders will intently watch Adobe’s disclosures and projections regarding its artificial intelligence (AI)-integrated services.

At 1:24 p.m. EDT, Adobe equity was trading at $270.41, sliding $3.38, or 1.24%. On Wednesday, it finished at $273.71. The stock has dropped 22% during 2026, following the fourth quarter’s disclosure of a 7.2 million share repurchase and record operational cash flow surpassing $10 billion.

Adobe stock hit a ceiling of $638.25 two years prior, but the swift embrace of AI has since transformed the technology sector.

For fiscal year 2025, Adobe reported record operational cash flow over $10 billion ($31 per US citizen) and bought back 7.2 million shares.

Interest in Photoshop, Illustrator and additional primary creative software remains robust, but focus has migrated to Adobe’s AI initiatives — the firm indicates AI-affected annual recurring revenue now represents more than one-third of aggregate revenue.

Adobe to launch AI assistant for Photoshop

Earlier this week, Adobe revealed that its AI assistant for Photoshop is launching for users in beta via the web and mobile applications. The firm is also introducing fresh AI-driven image-manipulation features to Firefly, its utility for media creation and refinement.

The creative software corporation initially unveiled an AI helper for Photoshop during its MAX convention in October. The utility, currently reaching users, can assist them in deleting objects or individuals from pictures, altering hues, or modifying illumination via prompts. Customers can likewise utilize everyday speech to direct the AI helper to apply soft radiance, crop in a particular layout, improve shadows, or convert the backdrop to provide a distinct appearance to your picture.

Adobe mentioned that premium subscribers of Photoshop will be permitted to produce endless creations with the AI helper through April 9, and trial users will receive 20 creations to begin with.

The organization is also introducing a fresh capability named AI markup in open beta, which allows individuals to sketch markers on the display and utilize the AI helper to modify those items.

Adobe is integrating new picture-refining utilities into its Firefly media-development tool. Firefly is receiving Generative Fill, which has existed in Photoshop for several years now, for substituting or inserting items and adjusting the backdrop appropriately.

Firefly is also acquiring a generative delete utility for item extraction, generative expand for enlarging a picture dimensions using AI, and generative upscale utilities. Additionally, the firm is providing a one-tap utility to delete the backdrop from pictures.