Adobe Inc (NASDAQ:ADBE) just gave investors a masterclass in AI-driven growth at its annual Summit and JPMorgan analyst Mark R. Murphy is taking note.

With a fresh disclosure of over $3.5 billion in 'AI-influenced' annual recurring revenue (ARR) and an aggressive push into Agentic AI, Murphy remains firmly Overweight on the stock, eyeing a December 2025 price target of $540. That's a juicy 38% upside from the price of $391.37.

AI-Influenced Revenue Gets A Big Reveal

Adobe's AI ambitions aren't just flashy keynote material. The company revealed that AI is influencing over $3.5 billion in ARR as of FY24, spanning its suite of AI-powered tools like Firefly, Acrobat AI and premium Digital Experience offerings.

Adobe has also set its sights on doubling its AI-first standalone and add-on products to $250 million by the end of FY25.

Investors looking for hard numbers on AI monetization just got them.

Read Also: Adobe Analysts Highlight AI Growth, Demand Trends: 'Could Mark An Inflection' In Investor Perception

Agentic AI: Adobe's Next Big Move

The big AI reveal didn't stop at revenue. Adobe's new AEP Agent Orchestrator takes center stage in its Agentic AI play, giving marketers a suite of specialized AI agents to optimize websites, run experiments and scale content.

Partnerships with tech heavyweights like Amazon.com Inc's (NASDAQ:AMZN) Amazon Web Services, Microsoft Corp (NASDAQ:MSFT) and International Business Machines Corp (NYSE:IBM) make this a strategic, ecosystem-driven bet.

Meanwhile, Adobe's Brand Concierge AI-powered solution promises a seamless, conversational buying experience for consumers. Simply put, Adobe isn't just riding the AI wave – it's building the board.

One Adobe: Where Creativity Meets Marketing

Another key theme?

The increasing convergence of creative and marketing workflows under Adobe's 'One Adobe' strategy. The company reported a 100%+ year-over-year surge in joint creative and marketing deals, signaling that its unified approach is paying off.

With new integrations like GenStudio Foundation bringing content creation and marketing analytics under one roof, Adobe is positioning itself as the go-to enterprise AI and content platform.

ADBE's AI Bet Is Gaining Traction

With a rapid-fire pace of innovation and a clear AI monetization strategy, Adobe's stock is looking increasingly attractive. Murphy's 38% upside call is underpinned by the company's durable growth rates, expanding AI-driven revenue streams, and a best-in-class profitability structure.

For investors looking for a stock riding the AI boom while maintaining solid fundamentals, Adobe just made a compelling case.

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