Adobe Beats Earnings but Shares Fall; Salesforce Demonstrates AI Monetization Progress
Adobe Inc. (NASDAQ:ADBE) reported better-than-expected third-quarter revenue and earnings, raising its full-year guidance despite a slight miss in fourth-quarter revenue expectations that led to a post-market share decline. Investors are now demanding clear evidence of how artificial intelligence accelerates growth metrics like bookings or pricing rather than just being tacked onto existing products. Salesforce Inc. (NYSE:CRM) is showing progress with its AI product, Agentforce, which has surpassed $1.5 billion in annualized recurring revenue and contributed to the company's strongest net-new order value growth in four years. While Adobe faces challenges from generative AI disrupting creative workflows, Salesforce must prove that autonomous agents can enhance overall growth rather than just become another SaaS category. Both companies are under pressure to demonstrate how their AI initiatives drive broader business performance. Hedge-fund ownership has slightly declined for both stocks this quarter, but short interest is decreasing, indicating reduced bearish sentiment.
Topics: Adobe AI Investor Sentiment Salesforce Software Earnings