New York, January 22, 2026, 12:43 EST — Regular session
- Adobe shares climbed roughly 1.6% by midday, beating the broader rise seen in software stocks.
- This week, the company unveiled new AI video tools and announced partnerships connected to Sundance.
- Investors are now focused on Adobe’s March 12 earnings call, searching for clues that the AI rollout is boosting paid demand.
Adobe (ADBE) shares climbed 1.6% to $298.88 on Thursday, reaching an intraday peak of $301.81. Software stocks stayed resilient during midday U.S. trading. The SPDR S&P 500 ETF Trust was up 0.7%, the Invesco QQQ Trust rose 0.8%, and the iShares Expanded Tech-Software Sector ETF gained 1.2%.
This shift is crucial as Adobe aims to lock in creative and video teams amid the rise of generative AI, which transforms how studios and brands make content. The key question: will these AI-driven features boost upgrades and renewals, or simply drive up expenses?
Another sticking point is ownership. Numerous corporate buyers now demand “commercially safe” AI—models developed using licensed or customer-owned data—to avoid the copyright battles that have long shadowed the industry.
On Jan. 20, Adobe announced new AI video features for Premiere and updates to After Effects just ahead of the Sundance Film Festival. The company also revealed plans to pour nearly $10 million into creator grants and donated products via its Film & TV Fund. “We’re thrilled to see so many filmmakers creating their stories with Adobe’s industry leading tools,” said Deepa Subramaniam, a vice president at Adobe, in the release. (Adobe)
Adobe detailed several updates in a Jan. 20 blog post, highlighting an AI-driven “Object Mask” feature in Premiere. The company also unveiled redesigned shape masks that can track objects up to 20 times faster, along with improved integration with Frame.io for smoother collaboration. Adobe emphasized that the Object Mask operates on-device and that it does not use customer data to train the underlying AI model. (Adobe Blog)
On Thursday, Adobe revealed fresh details about Firefly Foundry, its push to develop brand- and franchise-specific generative models tailored for media and entertainment. Sean Bailey, founder and CEO of B5 Studios, commented: “Adobe has always valued the creative process, championing artists and the worlds they bring to life.” (Adobe Blog)
Adobe’s stock bounced back on Wednesday, climbing 1.3% to $294.23 and ending a seven-day skid. Still, it remains about 37% shy of its 52-week peak, according to MarketWatch data. (MarketWatch)
But here’s the rub for bulls: partnerships and new features don’t automatically translate into tangible revenue. Investor patience has worn thin when AI launches fail to deliver promptly on billings, renewal rates, or margins.
In the short term, traders will track if the new video tools gain traction within pro workflows and if enterprise clients embrace the tighter, IP-controlled model Adobe is promoting for Foundry.
Adobe’s fiscal first-quarter earnings call is set for March 12 at 2:00 p.m. Pacific time. (Adobe)
