Adobe Inc (NASDAQ:ADBE) shares are on watch Wednesday. The company unveiled a major partnership to bring its creative tools directly into ChatGPT. Investors are also bracing for Adobe's fourth‑quarter earnings, due after the market close.
Adobe stock is trading near recent lows. What’s ahead for ADBE stock?
What To Know: Adobe rolled out Photoshop, Adobe Express, and Acrobat inside ChatGPT, giving the platform's 800 million weekly users access to its flagship apps through simple conversational prompts. The integration lets users edit images, design graphics and transform documents without leaving ChatGPT.
“We’re thrilled to bring Photoshop, Adobe Express and Acrobat directly into ChatGPT, combining our creative innovations with the ease of ChatGPT to make creativity accessible for everyone,” said David Wadhwani, president of digital media at Adobe.
As for the company’s expected financial performance, analysts predict Adobe to post earnings of $4.99 per share. Investors are watching closely for results that beat forecasts and for upbeat guidance heading into the next quarter. Fourth‑quarter revenue is expected to come out to $6.11 billion, up from $5.61 billion a year ago, according to Benzinga Pro.
Its previous quarter consisted of record revenue of $5.99 billion, up 11% year‑over‑year, with EPS of $5.31, topping analyst expectations. Digital Media revenue climbed 12% to $4.46 billion, while annualized recurring revenue hit $18.59 billion, up nearly 12%.
Adobe raised its full‑year 2025 guidance, projecting revenue of $23.65 to $23.70 billion and EPS of $20.80 to $20.85 on a non‑GAAP basis.
ADBE Analysis
Adobe stock’s 52-week range has been between $311.58 and $557.89, highlighting significant volatility over the past year. The current price is closer to the lower end of this range, which may indicate potential support around $340.56, the intraday low observed on Wednesday. A break below this level could lead to further declines, while a recovery above the recent high of $346.00 could signal a reversal.
Volume on Wednesday reached 3.0 million shares, which is relatively robust and suggests that there is active trading interest in Adobe despite the slight decline in price. This level of volume could support a potential breakout or breakdown depending on how the stock reacts to nearby support and resistance levels.
The technical outlook for Adobe remains mixed. While the stock is positioned above its 50-day moving average, the significant distance from the 200-day moving average raises concerns about its overall trend strength. Investors should watch for any signs of momentum that could either confirm a bullish reversal or reinforce the bearish sentiment if the stock fails to hold above the key support levels.
Market sentiment around technology stocks, including Adobe, will also play a crucial role in determining future price action. As the broader market navigates economic uncertainties, Adobe’s performance will be closely tied to its ability to maintain growth and adapt to changing market conditions.
ADBE Price Action: Adobe shares were flat at $345.11 at the time of publication on Wednesday, according to Benzinga Pro.
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