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Adobe Posts Strong 1Q25 Earnings and AI Adoption

Publisher IDC
Published Apr 03, 2025
Length 5 Pages
SKU # IDC19899491

Description

This IDC Market Note presents IDC’s opinion on Adobe’s 1Q25 financial results. While Wall Street was not impressed and Adobe’s stock plummeted double digit due to a weaker-than-expected outlook, much of Wall Street’s expectation was built on an AI monetization model that is not feasible for Adobe or other SaaS vendors. Similar to 2017, when machine learning suddenly became a de facto capability, monetization was not based on new SKUs but on increased licensing and incremental price increases over the long term. IDC expects the same for much of the new GenAI and agentic AI because they will both become ubiquitous and therefore commoditized.

Table of Contents

5 Pages

Executive Snapshot

In This Market Note

Financial Announcement Highlights

Customer Groups

Product and Business Highlights

Creative Cloud

Experience Cloud

IDC’s Point of View

Learn More

Related Research

Synopsis

How Do Licenses Work?
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