New York, January 30, 2026, 13:14 EST — Regular session
- Adobe shares nudged up about 0.5% by midday after unveiling new partnerships in India and broadening their enterprise service offerings
- Bharti Airtel plans to provide its 360 million Indian customers with a free one-year subscription to Adobe Express Premium
- Despite ongoing sector-wide sell-offs hitting software stocks, investors are still laser-focused on AI’s potential to drive paid demand higher
Adobe (ADBE.O) shares ticked up 0.5% to $293.14 near midday Friday, clawing back from an earlier drop. The stock’s moved between $289.48 and $295.25 as investors digested news of a fresh partnership amid a rough patch for U.S. software stocks this week.
The announcements come amid a challenging period for the sector. Investors have shifted away from seeing software subscriptions as reliable, “set-and-forget” revenue streams. Growing concerns now center on generative AI, which can quickly generate text, images, or code at little expense, potentially threatening those earnings.
Adobe sits squarely in the middle of this debate. Known for its premium creative and marketing software, the company is also pushing to broaden access to its more straightforward apps like Express. At the same time, it’s weaving AI deeper into its enterprise services.
Bharti Airtel is giving 360 million customers in India a free year of Adobe Express Premium through the Airtel Thanks app—no credit card required. “We want to empower every Airtel customer with the tools for self-expression,” said Siddharth Sharma, an Airtel executive. Adobe’s David Wadhwani said the goal is to “empower everyone to create and stand out” using Express. 1
Cognizant (CTSH.O) has deepened its collaboration with Adobe to help businesses “create, govern and scale” content and customer experiences using generative AI, with a strong emphasis on brand integrity and compliance. Adobe pointed to a survey of 1,600 marketers revealing that 96% saw their content demand double in the last two years. Stephen Frieder, Adobe’s enterprise revenue chief, said brands now need an “AI-driven content supply chain” that spans asset creation, approval, and distribution across multiple channels. 2
Fear gripped the tape. U.S. software stocks slid Thursday after SAP’s cloud forecast missed expectations and ServiceNow stumbled, even with strong subscription growth. This sparked worries about AI unsettling the traditional software sector. The S&P 500 Software and Services index tumbled 8.7%, marking its lowest point in nine months. “The malaise in software sentiment persists,” said J.P. Morgan analysts. 3
The broader market stumbled Thursday, with the S&P 500 and Nasdaq ending in the red as skepticism mounts over whether hefty AI bets will pay off anytime soon. “There are some genuine concerns that AI investments will eat the software companies’ lunches,” said John Praveen, managing director and co-CIO at Paleo Leon. 4
Traders watching Adobe are focused on whether these “free” distribution deals turn into paying customers or just temporary marketing spikes. Growth through telco bundles and managed enterprise rollouts could broaden the user base, but the real driver for the stock remains renewals, upgrades, and consistent usage over time.
The downside is obvious: if customers opt for cheaper AI design tools, Adobe might struggle more than investors expect to defend its pricing. Also, partnerships built on free offerings may not generate revenue as quickly as planned.
Adobe’s fiscal Q1 2026 earnings call will take place on March 12. Investors should note the date. 5
