Adobe's Earnings Outlook Amid Figma's IPO and AI Advancements

Adobe is poised to impress with its earnings, given its successful IPO rival Figma's strong AI traction. Adobe's experience and complexity make it a suitable comparison to Figma. The company's earnings are expected to be impressive, with its success in the IPO market serving as a benchmark.

Adobe (NASDAQ: ADBE) is set to release its earnings for the second quarter of fiscal year 2025, and investors are eagerly awaiting the results. The company's performance will be closely scrutinized, particularly in light of its recent failed acquisition attempt of Figma (NYSE: FIG) and Figma's own impressive IPO performance.

Figma, a design and coding company, went public on August 1, 2025, and its stock price more than tripled on its first day, reaching a market cap of over $59 billion. This significant valuation can be attributed to the company's strong AI potential and its widespread use by Fortune 500 companies. Figma's revenue growth has been robust, with an average quarterly revenue growth of 10% between the first quarter of 2023 and the second quarter of 2025 [1].

Adobe, on the other hand, has been facing market challenges, with its stock down more than 35% over the last twelve months. However, the company's earnings have been solid, with revenue of $5.87 billion in the second quarter of fiscal year 2025, up 11% from the previous year. Adobe's earnings per share (EPS) came in at $3.94 for GAAP and $5.06 for non-GAAP. The company's Digital Media segment, which includes Creative Cloud and Acrobat/Express, generated $4.35 billion, with annual recurring revenue climbing to over $18 billion, growing 12% year over year [2].

Adobe's AI initiatives have been a significant driver of growth, with monthly active users (MAU) for Acrobat and Express increasing by more than 25% year over year. The company's conversational AI features in Acrobat and Express have been well-received, with the number of users utilizing Express features inside Acrobat tripling compared to the previous quarter and increasing eleven times from the previous year [2].

Investors will be closely watching Adobe's earnings to gauge its ability to handle slower growth, tougher competition, and the challenge of turning AI talk into real revenue. While Figma's strong AI traction has been a key factor in its impressive IPO performance, Adobe's experience and complexity make it a suitable comparison. As Adobe continues to integrate AI into its product offerings, it is poised to impress investors with its earnings, setting a benchmark for other companies in the space.

References:
[1] Mitrade Insights. (2025). Figma's IPO: A Monster Valuation. Retrieved from https://www.mitrade.com/insights/news/live-news/article-8-1020626-20250807
[2] Seeking Alpha. (2025). Adobe in Prove-It Mode: Figma's IPO, AI Traction, and Earnings That Could Impress. Retrieved from https://seekingalpha.com/article/4812562-adobe-in-prove-it-mode-figmas-ipo-ai-traction-earnings-that-could-impress