Core Insights - Adobe and Figma are leveraging AI to enhance their creative software offerings and improve workflow efficiency, with Adobe being a leader in the market and Figma gaining traction due to the demand for collaborative design platforms [1] Adobe Stock Analysis - Adobe's AI integration is driving growth, with annual recurring revenues (ARR) surpassing $5 billion in Q3 2025, and new AI-first products contributing over $250 million to ARR [2][3] - Digital Media ARR increased by 11.7% year over year, driven by demand for AI-powered Creative Cloud Pro and Acrobat, with generative AI usage accelerating significantly [3] - Adobe expects fiscal 2025 revenues between $23.65 billion and $23.7 billion, reflecting a growth from $21.51 billion in fiscal 2024 [4] Figma Stock Analysis - Figma launched four new products at its annual conference, doubling its product offerings, which is expected to enhance its market position [5] - Over 80% of Figma customers use two or more products, indicating strong customer engagement, and recent acquisitions are expected to strengthen its offerings [6][7] - Figma projects revenues between $1.021 billion and $1.025 billion for 2025, suggesting a 37% year-over-year growth [8] Earnings Estimates - The Zacks Consensus Estimate for Adobe's fiscal 2025 earnings is $20.75 per share, indicating a 12.7% increase over fiscal 2024 [9] - Conversely, Figma's earnings estimate has declined to 30 cents per share, following a loss of $3.74 per share in 2024 [10] Price Performance and Valuation - Adobe shares have seen a slight decline of 0.3% in the past month, while Figma shares have dropped significantly by 17.4% [11] - Both companies are considered overvalued, with Adobe trading at a forward price/sales ratio of 6.11X compared to Figma's 19.69X [14] Conclusion - Figma's growth prospects are bolstered by its expanding portfolio, while Adobe's focus on generative AI and innovation is noteworthy, but Figma currently has a slight edge in top-line growth potential [17]