Good morning. Adobe is doubling down on agentic AI to make creativity extra conversational.
At its annual MAX person convention on Tuesday, Adobe (No. 201 on the Fortune 500) introduced current product improvements and the way its partnership with Google Cloud will convey the tech firm’s newest AI fashions immediately into Adobe apps.
Adobe is increasing its agentic AI capabilities to Photoshop and Adobe Specific, giving customers entry to its AI-powered assistants. The corporate additionally previewed plans to increase these conversational capabilities to fashions like ChatGPT, permitting customers to edit and generate content material utilizing pure language prompts. An Adobe Specific–ChatGPT integration is anticipated quickly.
Google brings essential technical experience, whereas Adobe leads in artistic options, Dan Durn, EVP and CFO at Adobe, informed me. By partnering, the businesses mix strengths to succeed in prospects, mentioned Durn, who leads finance, know-how, safety, and operations.
Artistic brokers and conversational interfaces constructed into Adobe instruments make merchandise like Specific and Photoshop extra productive and simpler to make use of, he defined. Customers now not have to grasp complicated menus; as a substitute, they merely kind what they need the product to do, he mentioned.
By means of the partnership, Adobe will be capable of combine Google’s newest AI fashions, together with Gemini, Veo, and Imagen, into Adobe’s functions as they arrive to market. Enterprise prospects will quickly be capable of customise Google’s AI fashions utilizing Vertex AI and Adobe Firefly Foundry to create brand-specific AI fashions for large-scale content material era, Durn mentioned.
Adobe’s increasing AI ecosystem
Adobe is growing proprietary Firefly fashions but additionally deeply integrating companion fashions, Durn defined. Greater than $5 billion in annual recurring income (ARR) now comes from customers participating with Adobe and AI capabilities of their workflows, he added. “We expect that number to keep growing,” he mentioned. “As we proliferate these capabilities, I want AI-influenced ARR to reach 100% of our business.”
The corporate additionally held an investor assembly in the course of the MAX occasion, reaffirming This fall and FY2025 targets. Adobe reported double-digit subscription income progress, non-GAAP working margins above 46%, and almost $10 billion in working money circulation over the previous yr.
Dan Romanoff, senior fairness analyst at Morningstar, wrote in a Tuesday notice that the agency maintains its honest worth estimate of $560 per share for wide-moat Adobe and sees shares as attractively valued.
“We don’t think Adobe has erased investor concerns, but we see growing momentum in product innovation and sales execution,” Romanoff wrote. “After good Q3 results and an impressive MAX conference, we sense Adobe has turned the corner.”
Adobe CEO Shantanu Narayen informed Bloomberg in an interview that Wall Road undervalues the corporate, with AI-focused buyers overlooking Adobe’s profitability and progress. Narayen expects the market to shift its consideration to Adobe’s energy in AI integration in functions.
Heading into 2026, Durn goals to proceed driving customer-focused progress. Adobe has greater than 700 million month-to-month energetic customers, up 25% year-over-year in Q3, he mentioned.
“We’re building an AI-first ideation playground with powerful capabilities presented in an approachable way for the next generation of creators,” Durn mentioned.
Leaderboard
Fortune 500 Energy Strikes
Paul Kuehneman was appointed interim CFO and controller at Hormel Meals Company (No. 352), efficient October 27. Kuehneman succeeds Jacinth Smiley, who’s leaving the corporate and will likely be pursuing different alternatives, in accordance with the announcement. Kuehneman has greater than 30 years of enterprise and finance expertise at Hormel Meals, holding a wide range of management roles, together with director of inner audit, VP and CFO for the Jennie-O Turkey Retailer, assistant controller, and, most lately, VP and controller of Hormel Meals.
Each Friday morning, the weekly Fortune 500 Energy Strikes column tracks Fortune 500 firm C-suite shifts—see the latest version.
Extra notable strikes
Mala Murthy was appointed EVP and CFO of TriNet (NYSE: TNET), a supplier of human assets options, efficient November 28. Murthy will succeed TriNet’s present CFO, Kelly Tuminelli, who will function a particular advisor to the CEO by way of March 16, 2026. Murthy most lately served as CFO of Teladoc Well being. Earlier than that, she held a number of senior government positions at American Specific, together with CFO of its international business providers section. She additionally beforehand served in FP&A, treasury, and company growth and technique management positions with PepsiCo.
Michelle Turner was appointed CFO of Teradyne, Inc. (Nasdaq: TER), a supplier of automated check tools and superior robotics, efficient November 3. Turner replaces Sanjay Mehta, who has served as Teradyne’s CFO since 2019. Turner brings 30 years of economic and strategic management expertise. Earlier than becoming a member of Teradyne, she was the CFO for L3Harris Applied sciences. Turner has additionally held a wide range of senior monetary administration and management roles in Johnson & Johnson, BHP Billiton, Raytheon, and Honeywell.
Huge Deal
The Federal Reserve lowered its benchmark rate of interest by 1 / 4 of a share level on Wednesday, a extensively anticipated transfer that comes amid a worsening information blackout, Fortune’s Eva Roytburg studies.
The Fed’s coverage charge now stands at roughly 3.75% to 4.00% — its lowest degree in three years — and marks the second charge reduce since President Trump’s return to workplace. Markets had totally priced within the transfer: CME Group’s FedWatch Instrument confirmed almost a 100% chance of a 25-basis-point discount heading into the assembly.
Going deeper
In a brand new episode of Wharton’s “Ripple Effect” podcast, Wharton’s Jerry Wind, creator of the ebook “Creativity in the Age of AI,” explores methods to make use of AI to unlock creativity for private {and professional} success. “Creativity has always been absolutely critical for any progress,” Wind says. “It’s the core of any innovation, whether we’re dealing at the individual level, the organizational level, businesses or even societies.”
Overheard
“While the bears will continue to yell ‘AI bubble’ from their hibernation caves, we continue to point to this tech CapEx supercycle that is driving this fourth Industrial Revolution into the next few years.”
—Wedbush Securities analysts write in an trade notice launched this morning.
