Adobe Inc. ( ADBE ) shares are trading higher Thursday ahead of the company's fiscal second-quarter earnings report, with investor focus centering on AI integration, product growth and forward guidance.

What To Know: Wall Street expects Adobe to report revenue of $5.79 billion and earnings per share of $4.96, both reflecting significant year-over-year growth. The company's own guidance falls within the expected range.

Analysts are also looking closely at Adobe's AI monetization strategy, particularly through products like Firefly and Acrobat. Despite frequent earnings beats in the past, Adobe shares have dropped after six of the last seven quarterly reports, partly due to conservative forward-looking guidance.

Adobe's stock remains under pressure, down 6.8% year-to-date and about 35% below its all-time high. Freedom Capital's Jay Woods emphasized that investors will be watching for signs of accelerating annual recurring revenue tied to AI tools, and whether the company can boost sentiment with its guidance.

Separately, Adobe announced a new partnership with Newell Brands ahead of the report, to integrate Adobe's generative AI tools, including Firefly and Adobe Express, to scale digital content creation. Newell reported improved efficiency in packaging design and social content production, with generative AI shortening turnaround times and boosting productivity. The partnership highlights Adobe's role in the enterprise AI ecosystem and reinforces its strategy to expand AI-powered services across industries.

Investor attention remains high going into Thursday's report, as Adobe's ability to meet or exceed expectations and issue strong guidance will likely determine its short-term stock trajectory.

ADBE Price Action: Adobe shares were up 0.43% at $414.57 at the time of publication Thursday, according to Benzinga Pro.

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