Adobe deepens Google Cloud partnership to advance AI and next-gen creativity, says CFO

At its annual MAX User Conference on Tuesday, Adobe (No. 201 on the Fortune 500 list) announced recent product innovations and how its partnership with Google Cloud will bring the tech company’s latest AI models directly into Adobe applications.

Adobe is expanding its AI capabilities to include Photoshop and Adobe Express, giving users access to its AI assistants. The company has also previewed plans to expand these conversational capabilities to include forms like ChatGPT, allowing users to edit and create content using natural language prompts. Adobe Express–ChatGPT integration is expected soon.

Google provides critical technical expertise, while Adobe drives creative solutions, Dan Dorn, Adobe’s executive vice president and chief financial officer, told me. By partnering, the companies combine strengths to reach customers, said Dorn, who leads finance, technology, security and operations.

The creative agents and conversational interfaces built into Adobe tools make products like Express and Photoshop more productive and easier to use, he explained. Users no longer need to master complex menus; Instead, they simply write what they want the product to do.

Through this partnership, Adobe will be able to integrate Google’s latest AI models – including Gemini, Veo, and Imagen – into Adobe applications when they come to market. Enterprise customers will soon be able to customize Google’s AI models using Vertex AI and Adobe Firefly Foundry to create brand-specific AI models for content creation at scale, Dorn said.

Adobe’s expanding AI ecosystem

Dorn explained that Adobe is developing proprietary Firefly templates but is also deeply integrating partner templates. He added that more than $5 billion in annual recurring revenue (ARR) now comes from users interacting with Adobe and AI capabilities in their workflow. “We expect this number to continue to grow,” he added. “As we deploy these capabilities, I want AI-influenced ARR to reach 100% of our business.”

The company also held an investor meeting during the MAX event, where it reiterated its Q4 and fiscal 2025 goals. Adobe recorded double-digit subscription revenue growth, non-GAAP operating margins of more than 46%, and nearly $10 billion in operating cash flow over the past year.

Dan Romanoff, chief equity analyst at Morningstar, wrote in a note Tuesday that the company maintains a fair value estimate of $560 per share for wide-moat Adobe and views the stock’s value as attractive.

“We don’t believe Adobe has eliminated investor concerns, but we do see growing momentum in product innovation and sales execution,” Romanoff wrote. “After good third-quarter results and an impressive MAX conference, we feel Adobe has turned the corner.”

Adobe CEO Shantanu Narain told Bloomberg in an interview that Wall Street is undervaluing the company, as AI-focused investors ignore Adobe’s profitability and growth. Narain expects the market to turn its attention to Adobe’s strength in integrating AI into applications.

Heading into 2026, Durn aims to continue driving customer-focused growth. Adobe has more than 700 million monthly active users, up 25% year over year in the third quarter, he said.

“We are building an AI-first thinking playground with powerful capabilities delivered in an accessible way for the next generation of creators,” Dorn said.

Cheryl Estrada
sheryl.estrada@fortune.com

Leaderboards

Fortune 500 power moves

Paul Kohneman He has been appointed interim CFO and Controller of Hormel Foods Corporation (No. 352), effective October 27. Kohneman succeeds Jacinth Smiley, who has left the company and will pursue other opportunities, according to the announcement. Koenman brings more than 30 years of business and financial experience to Hormel Foods, where he served in a variety of leadership roles, including Director of Internal Audit, Vice President and CFO of Jennie-O Turkey Store, Assistant Controller, and most recently Vice President and Controller of Hormel Foods.

Every Friday morning, our weekly Fortune 500 Power Moves column tracks the transitions to executive positions at a Fortune 500 company —See latest edition.

More notable moves

Mala Murthy He has been named vice president and CFO of TriNet (NYSE: TNET), a human resources solutions provider, effective November 28. Murthy will succeed TriNet’s current CFO, Kelly Tominelli, who will serve as a special advisor to the CEO until March 16, 2026. Murthy most recently served as CFO of Teladoc Health. Prior to that, she held several senior executive positions at American Express, including CFO of the Global Trade Services segment. She also previously served in leadership positions in financial planning and analysis, treasury, corporate development and strategy at PepsiCo.

Michelle Turner He was appointed CFO of Teradyne, Inc. (Nasdaq: TER), a provider of automated testing equipment and advanced robotics, effective November 3. Turner replaces Sanjay Mehta, who has served as Teradyne’s CFO since 2019. Turner has 30 years of financial and strategic leadership experience. Prior to joining Teradyne, she was CFO of L3Harris Technologies. Turner has also held a variety of senior leadership and financial management positions at Johnson & Johnson, BHP Billiton, Raytheon, and Honeywell.

Big deal

The Federal Reserve cut its benchmark interest rate by a quarter of a percentage point on Wednesday, a widely expected move that comes amid a worsening data blackout. luckEva Roitberg reports.

The Fed’s benchmark interest rate is now around 3.75% to 4.00% – its lowest level in three years – and marks the second rate cut since President Trump returned to office. Markets had fully priced in the move: CME Group’s FedWatch tool showed almost 100% probability of a 25 basis point cut before the meeting.

“Economic activity is expanding at a moderate pace,” the Federal Open Market Committee (FOMC) said in a statement. However, the committee acknowledged that job gains have slowed and the unemployment rate has risen, although it “remains low.” The report noted that inflation “has risen since earlier in the year and remains fairly high.” Read more here.

Go deeper

“How to Detect Bias in Large Language Models” is a new report in the Wharton Business Journal. Research by Wharton’s Sonny Tambe found that MBAs can make biased hiring decisions that traditional audit methods may not be able to capture.

I heard

“While the bears will continue to scream ‘AI bubble’ from their slumber caves, we continue to point to this supercycle of tech capital driving this fourth industrial revolution into the next few years.”

— Wedbush Securities analysts write in an industry note issued this morning.