New York, January 30, 2026, 13:14 EST — Regular session
- Adobe shares rose roughly 0.5% by midday following announcements of new partnerships in India and expanded enterprise services
- Bharti Airtel will offer a free year of Adobe Express Premium to its 360 million customers across India
- Investors remain fixated on whether AI can boost paid demand, even as software stocks continue to suffer from broad sector sell-offs
Adobe (ADBE.O) shares edged up 0.5% to $293.14 around midday Friday, recovering from an earlier dip as investors absorbed news of a new partnership and a tough week for U.S. software stocks. So far, the stock has swung between $289.48 and $295.25 during the session.
The announcements arrive at a tricky time for the sector. Investors are no longer viewing software subscriptions as steady “set-and-forget” income. Instead, they’re increasingly wary that generative AI—capable of rapidly producing text, images, or code at minimal cost—could erode that revenue.
Adobe finds itself at the heart of this debate. The company offers high-end creative and marketing software but is also working to expand access to its simpler apps like Express, all while embedding AI capabilities more fully into enterprise operations.
Bharti Airtel announced it will offer 360 million customers in India a free year of Adobe Express Premium, available through the Airtel Thanks app with no credit card needed. “We want to empower every Airtel customer with the tools for self-expression,” said Airtel executive Siddharth Sharma. Adobe’s David Wadhwani added the company aims to “empower everyone to create and stand out” using Express. (Airtel)
Cognizant (CTSH.O) announced it’s expanded its partnership with Adobe to help companies “create, govern and scale” content and customer experiences through generative AI, focusing heavily on brand integrity and compliance. Adobe highlighted a survey of 1,600 marketers showing 96% had their content demand double over the past two years. Stephen Frieder, Adobe’s enterprise revenue chief, said brands now require an “AI-driven content supply chain” — covering everything from asset creation to approval and distribution across channels. (News | Cognizant Technology Solutions)
Fear has dominated the tape. U.S. software stocks dropped Thursday after SAP’s cloud forecast fell short and ServiceNow stumbled despite strong subscription numbers, fueling concerns that AI is disrupting the traditional software landscape. The S&P 500 Software and Services index plunged 8.7%, hitting a nine-month low. “The malaise in software sentiment persists,” J.P. Morgan analysts noted. (Reuters)
The broader market showed signs of unease, with the S&P 500 and Nasdaq closing lower Thursday amid doubts over whether heavy AI investments will deliver returns quickly. “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. (Reuters)
Traders tracking Adobe want to see if “free” distribution deals actually convert into paying customers, rather than just one-off marketing boosts. Expanding into telco bundles and managed enterprise rollouts might widen the user base, but it’s the follow-up—renewals, upgrades, and ongoing usage—that usually drives the stock.
The downside is clear: if customers settle for cheaper AI design tools, Adobe could face tougher battles protecting its pricing than investors anticipate. Plus, partnerships relying on freebies might not translate into revenue as fast as hoped.
Investors should mark their calendars: Adobe’s fiscal Q1 2026 earnings call is set for March 12. (Adobe)
