• In late January 2026, Cognizant announced an expanded global collaboration with Adobe to help enterprises use generative AI to create, govern and scale content and customer experiences across regulated and fast-growing industries.

• This move highlights how Adobe is positioning its Firefly and Experience Cloud technologies at the center of clients’ end-to-end content supply chains, from ideation through compliance and personalization.

• With recent analyst concerns about growth and competition in mind, we’ll examine how this expanded generative AI collaboration shapes Adobe’s investment narrative.

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For Adobe to make sense in a portfolio, you have to believe its core creative and experience franchises can keep generating strong cash flows while it successfully layers monetizable AI into those workflows. The stock has pulled back sharply over the past year despite high returns on equity, healthy margins and what analysts still see as a large gap between price and fair value, largely because growth expectations have reset and competition in design and generative AI has intensified. Against that backdrop, the expanded Cognizant collaboration looks less like an immediate financial needle‑mover and more like a signal that Adobe is leaning into large, services‑heavy deployments of Firefly and Experience Cloud. In the near term, key catalysts remain AI feature adoption, renewal trends and upcoming earnings, while the biggest risks center on slower growth, pricing pressure and high‑end “seat” compression if customers decide they can do more with fewer licenses.

However, there is one emerging risk in Adobe’s model that investors should not overlook. Despite retreating, Adobe’s shares might still be trading 45% above their fair value. Discover the potential downside here.

Across 102 Simply Wall St Community models, fair value estimates span roughly US$272 to just over US$600, underlining how differently private investors see Adobe’s potential. Set against near term worries about growth, competition and subscription demand, that spread shows why it can pay to weigh several contrasting viewpoints before forming a view on the stock’s long run opportunity.

Explore 102 other fair value estimates on Adobe – why the stock might be worth 7% less than the current price!

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