Adobe Inc (NASDAQ:ADBE) wants to reignite growth, and Goldman thinks artificial intelligence could be the breakthrough it needs.
The investment bank believes the software giant is on the verge of delivering consistent double-digit revenue growth, powered by deeper AI integration across its portfolio.
The core of that push is Firefly, Adobe’s generative AI engine, which is being woven into products like Photoshop, Acrobat and Experience Cloud.
Although AI-only products currently bring in just $125 million a year, that figure is expected to double by the end of this financial year. Goldman reckons AI already influences more than $3.5 billion of Adobe’s annual revenue.
In a new note following the company’s 2025 summit, Goldman maintained its 'buy' rating and $640 price target, implying over 60% upside.
It sees Adobe as a quality software business that’s underappreciated by the market, especially as investor focus shifts from infrastructure to AI-enabled applications.
The bank points to rising engagement across Adobe’s ecosystem. Express, a simplified design tool aimed at small businesses, has grown its user base tenfold year-on-year.
AI features in Acrobat and Firefly are also seeing a sharp pick-up in usage, helping pull more users into Adobe’s suite of mobile and browser-based tools. Goldman expects this to drive cross-selling and expand monetisation.
Enterprise customers could be the next engine of growth. Adobe’s Creative Cloud is still dominated by individual and small business users, but the company is building out its pitch as a full-stack content platform for large organisations.
That means leaning into automation, compliance and collaboration tools—features that could help Adobe grow its current base of 22,000 enterprise customers.
Goldman argues that Firefly, and AI more broadly, will allow Adobe to lift average revenue per user while unlocking new monetisation models. A shift towards usage-based pricing is already underway, with paid Firefly credits now in use and consumption up 2.5 times year-on-year.
Although Adobe’s shares have underperformed the Nasdaq over the past 12 months, Goldman believes the market has yet to fully price in the AI upside.
With strong margins and improving growth visibility, the bank sees Adobe as one of the few large-cap software stocks capable of delivering both.
Pre-market, Adobe shares were up 1.3% at $392.41.