Adobe raises annual forecasts on steady adoption of AI-powered tools
The company, an industry veteran in the creative software market, is known for its flagship products, such as Photoshop and Premiere Pro, which have become essential tools for professionals worldwide.
Despite a weak first quarter marked by budget constraints and project delays amid macroeconomic uncertainties, Jefferies analysts said demand seemed to start recovering in the second quarter as clients resumed stalled projects and adjusted to the changing environment, supporting ongoing growth targets.
Adobe expects revenue to be between $23.50 billion and $23.60 billion in fiscal 2025, compared with its prior range of $23.30 billion to $23.55 billion.
Excluding items, it raised its full-year profit to between $20.50 and $20.70 per share, from its prior range of $20.20 to $20.50 each.
"We continue to invest in AI innovation across our customer groups to enhance value realization and expand the universe of customers we serve," finance chief Dan Durn said.
In 2023, Adobe launched Firefly, which enables users to create, edit and enhance images and videos from simple text prompts.
Powered by ethically sourced training from exclusively licensed or public domain images, Adobe Firefly expands the company's AI-driven creative tools, enabling users to accelerate ideation and content creation while ensuring brand safety and copyright compliance.
Adobe said in April it was integrating image-generation AI models from OpenAI and Google into its Firefly app.
Revenue for the second quarter stood at $5.87 billion, above the analysts' average estimate of $5.79 billion.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
6 hours ago
- CNA
Investment firm Azoria postpones Tesla ETF after Musk plans political party
Investment firm Azoria Partners said on Saturday it will postpone the listing of its Azoria Tesla Convexity exchange traded fund after Tesla CEO Elon Musk said he was forming a new U.S. political party. Musk made the announcement a day after polling his followers on the X social media platform he owns, declaring, "Today the America Party is formed to give you back your freedom." Azoria was set to launch the Tesla ETF, which would invest in the electric vehicle company's shares and options, next week. However, following Musk's announcement Azoria CEO James Fishback posted on X several critical comments of the new party and repeated his support for U.S. President Donald Trump. That culminated in a post where Fishback announced the postponement of the ETF. "I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO," Fishback said. The announcement undermines the confidence shareholders had in Tesla's future after Musk said in May he was stepping back from his role leading the Department of Government Efficiency, Fishback said. Tesla did not immediately respond to a Reuters' request for comment. The announcement from Musk comes after Trump signed his self-styled "big, beautiful" tax-cut and spending bill into law on Friday, which Musk fiercely opposed. Azoria is also offering the Azoria 500 Meritocracy ETF that only invests in the top 500 U.S. companies that do not impose hiring targets under diversity, equity and inclusion programs, according to its website.
CNA
14 hours ago
- CNA
Commentary: Whose job is safe from AI?
LONDON: As artificial intelligence becomes ever more capable, is any job secure? 'I've sort of convinced myself that the safest job in the world is probably gardener,' the FT's chief economics commentator Martin Wolf recently confessed. That seemed right. There are some things the computers just can't do. The next morning the FT published The Gardens That AI Grew, describing intelligently automated drip irrigation, pest detectors, laser scarecrow systems and a solar-powered weeding robot. Oof. It's not entirely clear how much the laser scarecrow and the robot weeder really will threaten the jobs of human gardeners, but the prospect reminds us that there is a distinction between a job and a task. Most jobs are bundles of interconnected tasks. A gardener needs to do everything from mowing and weeding to diagnosing a pest infestation, designing an outdoor space, or – hardest of all – communicating with a difficult client. Different AI systems could well help with most of these tasks, although the likely outcome is not that the job of gardener disappears, but that it changes shape. The question is, how will each new AI application change the shape of what we do? And will we like the reworked jobs available to us on the other side of this transformation? TECHNOLOGY, BOTH OLD AND NEW Generative AI may be new but these questions are not. They run all the way back to the Luddite protests of the early 1800s, when highly skilled textile workers saw machines doing the hardest parts of their job, allowing them to be replaced by low-paid labourers with far less expertise. And the answers to those long-standing questions? They depend both on the technology and on the job. There's a lesson to be drawn from two contrasting precedents: the digital spreadsheet, and warehouse guidance earpieces such as the 'Jennifer unit'. The digital spreadsheet, which hit the market in 1979, instantly and flawlessly performed work previously done by accounting clerks, but the accounting profession simply moved on to more strategic and creative problems, modelling different scenarios and risks. Who doesn't want a creative accountant? The Jennifer unit is a headset to guide warehouse pickers as they scurry around grabbing merchandise off shelves, whispering in their ears as it tracks their last move and guides their next one. The unit removes the last vestige of cognitive load from a physically demanding job that was already mind-numbing. It is a stark contrast to the digital spreadsheet, which excised the most tedious part of a varied and highly skilled job. The lesson: AI can make a boring job even more boring and an interesting job even more interesting. New data and a new perspective on these questions come from MIT researchers David Autor and Neil Thompson. Autor and Thompson begin a new research paper titled 'Expertise' by posing a question: would we expect accounting clerks and inventory clerks to be similarly affected by automation? There are several well-established approaches to analysing this question, and all of them suggest that the answer is 'yes'. Back in the day, both types of clerk spent a lot of time performing routine intellectual tasks such as spotting discrepancies, compiling inventories or tables of data, and doing simple arithmetic on a large scale. All of these tasks were the kind of things that computers could do, and as computers became cheap enough they took over. Given the same tasks faced the same sort of automation, it seems logical that both jobs would change in similar ways. THE JOBS AI CAN DO, AND CAN'T But that is not what happened. In particular, say Autor and Thompson, wages for accounting clerks rose, while wages for inventory clerks fell. This is because most jobs are not random collections of unrelated tasks. They are bundles of tasks that are most efficiently done by the same person for a variety of unmysterious reasons. Remove some tasks from the bundle and the rest of the job changes. Inventory clerks lost the bit of the job requiring most education and training (the arithmetic) and became more like shelf-stackers. Accounting clerks also lost the arithmetic, but what remained required judgment, analysis and sophisticated problem solving. Although the same kind of tasks had been automated away, the effect was to make inventory clerking a job requiring less training and less expertise, while accounting clerks needed to be more expert than before. The natural worry for anyone hoping to have a job in five years' time is what AI might do to that job. And while there are few certainties, Autor and Thompson's framework does suggest a clarifying question: does AI look like it is going to do the most highly skilled part of your job or the low-skill rump that you've not been able to get rid of? The answer to that question may help to predict whether your job is about to get more fun or more annoying – and whether your salary is likely to rise, or fall as your expert work is devalued like the expert work of the Luddites. For example, generative AI systems are great brainstormers. They make unexpected connections and produce lots of varied ideas. When I'm running a role-playing game, that's great. They accelerate the preparation and let me get straight to the good stuff, which is sitting around the table with my friends pretending to be wizards. For someone whose job offers occasional oases of creative brainstorming in a desert of menial administration, the emergence of industrial brainstorming engines might be rather less liberating. Or consider that gardener. Perhaps the worst part of their job is trying to compose emails to desk-based clients who seem far more fluent in the medium than someone who spends most of their time outside. Laser scarecrows and robot weeders be damned. What the gardener needs is an AI secretary, scribe and editor. And the technology for that is already here.
Straits Times
15 hours ago
- Straits Times
Graduates are not screwed if they study engineering: James Dyson in response to Economist article
Sign up now: Get ST's newsletters delivered to your inbox British inventor and billionaire entrepreneur James Dyson, 78, said design and science students will hold up well in the age of artificial intelligence. SINGAPORE - Today's graduates are not doomed if they study engineering, despite a poor job market. This belief has long been held by British inventor James Dyson, 78, who has been thinking of bringing to Singapore his company's degree apprenticeship programme in engineering, where undergraduates earn a salary and pay no fees. 'A country's wealth is established by engineers and scientists,' the British inventor and billionaire entrepreneur told The Straits Times in a rare one-on-one interview on June 30 at the former St James Power Station, now the global headquarters of Dyson , the consumer electronics company he founded. In response to a June 16 article in The Economist titled 'Why today's graduates are screwed' , he said: 'I don't think that applies to engineers and scientists.' Citing the US Bureau of Labour Statistics and employment data in the European Union and Britain, the article said that employers have trimmed jobs in graduate-friendly industries, and that graduates are losing their wage premiums. Mr Dyson is stubbornly optimistic that engineering, design and science students will hold up well, saying that artificial intelligence (AI) can never replace the human brain for creativity. 'AI can pretend to be creative by combining things, but I don't think it can ever truly be creative and do something different and unexpected,' he said. Top stories Swipe. Select. Stay informed. Singapore Asean needs 'bolder reforms' to attract investments in more fragmented global economy: PM Wong Singapore CPF members can make housing, retirement and health insurance plans with new digital platform Singapore CPF's central philosophy of self-reliance remains as pertinent as ever: SM Lee Singapore Credit reports among personal data of 190,000 breached, put for sale on Dark Web; IT vendor fined Asia Dalai Lama hopes to live beyond 130 years, much longer than predicted Singapore Tan Cheng Bock, Hazel Poa step down from PSP leadership; party launches 'renewal plan' Sport Liverpool will move on after Jota's tragic death, but he will never be forgotten Singapore Rock climbing fan suddenly could not jump, get up from squats Gesturing towards the Dyson PencilVac, its latest slim cordless vacuum cleaner, and the firm's range of slim hairdryers in the interview room, Mr Dyson said that AI did not create these products. British inventor and billionaire entrepreneur James Dyson, 78, with the latest Dyson PencilVac vacuum cleaner's motor - its smallest and fastest with a diameter of just 28mm or the size of a 50 cent Singapore coin. ST PHOTO: GAVIN FOO During the hour-long interview, he also spoke passionately about original ideas, experimentation and creativity, as well as changes that need to be made to what and how students study. These concepts are key to survival in a world disrupted by AI, experts say. AI will undoubtedly do away with routine jobs as automation has with typists, said Mr Dyson, confronting the topic of layoffs, which have been seen in the past year at tech firms including Dyson, TikTok, Google, Microsoft, Intel, Amazon and Meta. And the bar continues to be raised, as knowledge workers, who were once thought to be safe, are also now at risk of being replaced. Those at risk include paralegals, tutors, writers, graphic designers, software coders and stock traders. Mr Dyson said matter-of-factly: 'Creativity will become harder because you have got to be better than a machine, better than AI, right?' Declining to go into the specifics of Dyson's surprise 2024 global job cuts , he said that organisations have to change with the times. 'The world is changing where things are made, how they are made, how you can move quickly and where the areas of expertise are. You can't go on with the old set-up. You have to adapt to the new set-up. And unfortunately, along the way, that creates different jobs, and some of the old jobs go,' he said. In late 2024, Dyson cut an undisclosed number of jobs in Singapore following a global restructuring move that involved about 1,000 job cuts in Britain. Staff here were reportedly shocked, given that the firm had announced it was stepping up investments in Singapore. Mr Dyson did not want to specify what roles were made redundant, but acknowledged that it is not always possible to reskill staff for new roles. In 2022, Dyson said it would invest $1.5 billion in its Singapore operations over the subsequent four years, and committed to hire more than 250 engineers and scientists across robotics and machine learning. The firm confirmed on June 30 that it is still committed to the plan. In 2023, it recorded a 9 per cent year-on-year increase in profit to £1.4 billion (S$2.4 billion), on a 9 per cent rise in global revenue of £7.1 billion. Despite global headwinds, it also increased its research and development expenses by more than 40 per cent in 2023, bringing total expenses to more than £2 billion since 2021, putting what it preaches into practice. Today, the company still hires some 2,000 employees in Singapore, half of whom are engineers key to the development of its latest PencilVac, which will go on sale here on July 14. The product's patented digital motors are made in Singapore, with one motor rolling off its Jurong manufacturing line every two seconds. These motors power its vacuum cleaners, air purifiers and hair dryers. Dyson had also said in 2023 that by the end of 2025, next-generation batteries would be produced in a new 247,000 sq ft plant located in Tuas . It had called the plant the most significant investment in advanced manufacturing in the company's history. The next-generation batteries would be smaller, lighter, more sustainable and more energy-dense than the ones available today, according to the company. Mr Dyson, who travels to Singapore almost every month from Gloucestershire in the UK, where he lives, did not want to confirm if the battery plant is on track to open. During one of his visits in February, he gave Deputy Prime Minister Gan Kim Yong a preview of the PencilVac's motor, the firm's smallest and fastest vacuum motor with a diameter of just 28mm, the size of a 50-cent Singapore coin. Singapore is where Dyson's patented digital motors are made, with one motor rolling off its Jurong manufacturing line every two seconds. ST PHOTO: GAVIN FOO 'He was very excited,' said Mr Dyson. 'I can't emphasise more that the ability to put the new, pioneering technology into production is a great skill for a country to have.' Speaking broadly on education, a topic he is highly critical about, he said that some reverse engineering might be necessary to inspire students to study engineering. 'The academic nature of university teaching may suit some people, but it doesn't suit everybody. And when you have gone through it, are you still able to be creative? And the dryness of academic work, where you are just learning a theory all day long for three years, or whatever it is, is that the best way to learn?' Drawing on his experience pioneering a degree apprenticeship programme in the UK, he said: 'Would it be better to do what we are doing with our own university, where people work for three days with the best scientists and engineers in the world, and then have two days of academic teaching where they are inspired to do the academic side of things because they realise they can then answer the questions on the practical side.' Founded in 2017, the Dyson Institute of Engineering and Technology in the UK runs a four-year engineering programme offering real-world working experience on the site of Dyson's design centre in Malmesbury, Wiltshire. The institute initially awarded degrees validated by the University of Warwick. But in 2021, it was given the authority to award its own degrees – a first in Britain, and also possibly in the world. Today, its 168 undergraduate engineers earn a salary and pay no tuition fees to create real products. Dyson has been actively engaging the Singapore authorities for a number of years to do more to inspire students here to be interested in science and engineering designs. It is mulling over several options to intensify these efforts, including bringing to Singapore its degree apprenticeship programme. 'We are looking at it,' he said, adding that 'the model for Singapore might be slightly different' because Dyson has existing internship programmes with local universities. Every year since 2019, up to 50 interns from the four local universities go through Dyson's doors doing stints between three and 12 months, providing a pipeline for its manpower needs. The proportion of people in Singapore taking engineering and science at university is also higher than in the UK, he noted. Born in Norfolk, Mr Dyson spent a year at the Byam Shaw School of Art before reading furniture and interior design at the Royal College of Art. There, he made the switch to industrial design. 'My chief engineer studied engineering and then studied design, and then came to me to practise as a designer engineer. We have quite a few of those. That is a very good combination, right?' he said. 'But we also feel that we can teach design by osmosis.'
