Is Adobe A Better Way Than Salesforce To Own AI Software Growth

Investors hold Salesforce (CRM) and Adobe (ADBE) on the same premise: artificial intelligence will make their subscription software grow faster again. The two companies part ways on how they charge for it. Salesforce gets 60% to 80% more for its premium editions than for its lower ones, and it wants customers to upgrade. Adobe has held off on price rises to win users. So which approach is paying off so far?

Salesforce Is Booking More Business While Adobe Adds Users

Both strategies are showing different forms of progress. During its August 26, 2026 call, Salesforce reported that revenue under contract for the next twelve months grew 14% from a year earlier, excluding currency moves. Its AI agent product, Agentforce, reached $1.5 billion in annual recurring revenue.

Executives also raised Salesforce's revenue guidance for fiscal 2027 to a range of $46.1 billion to $46.4 billion. Management valued that increase at about $300 million, excluding currency moves. About $200 million of that raised projection is expected from Contentful and Fin, two acquisitions that had not closed at the time of the call.

Adobe focused mostly on users during its September 10, 2026 call. The company now counts more than 1 billion monthly users across its businesses, up more than 20% in a year. Customers are consuming AI credits faster each quarter across Creative Cloud and the Firefly app, management said. At the same time, Adobe's AI-first products have passed $650 million in annual recurring revenue.

The two earnings reports highlight distinct priorities. Salesforce's lead figure is money customers have already signed for. Adobe's is reach, and management says its aim is to prove value to those users first.

Where Salesforce Is Spending, And What It Owes

Salesforce is adding salespeople. Management plans to hire 1,200 more account executives before the end of the year. Since the call, Salesforce has also agreed to buy Listen Labs and Loops, on top of Contentful and Fin.

Salesforce is also executing a $25 billion accelerated share buyback. That program represents about 1.6 years of its free cash flow, which totaled $15.2 billion over the last twelve months.

Salesforce's total debt equals 20.6% of its market value, against 6.8% for Adobe. Adobe holds almost as much cash as debt.

Adobe Has A Lower P/E And A Wider Margin

Adobe trades at 13.6 times its earnings over the last twelve months, against 20.9 times for Salesforce. Adobe is also growing slightly faster. Its revenue rose 12.0% over its latest twelve months, compared with 11.2% for Salesforce. Adobe's average growth over the past three years is higher as well.

Adobe keeps more of each sale as profit. Its operating margin was 35.7% over its latest twelve months, against 21.5% for Salesforce. On guidance, the two companies are level: each raised three of its main forecasts in its latest release and lowered none.

Salesforce has widened its operating margin in each of the last two years, expanding from 19.1% two years earlier to 21.2% a year earlier. Adobe's slipped from 36.2% a year earlier.

Adobe holds the lower P/E and leads on growth, margin, and debt. Salesforce is better at widening its margin. Management has said Salesforce's revenue growth, leaving out acquisitions, is on track to speed up in the second half of fiscal 2027. Salesforce's revenue growth for fiscal Q3 2027, the first quarter of that half, is the result that could alter this comparison. Salesforce's report for that quarter is expected on or around December 1, 2026.

Does This Mean You Should Act On CRM?

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