Newell Brands partners with Adobe to scale content creation with AI

SAN JOSE - Newell Brands (NASDAQ:NWL) is expanding its partnership with Adobe (NASDAQ:ADBE), a prominent player in the software industry with impressive gross profit margins of 89%, to implement generative AI solutions for accelerating content creation across its portfolio of consumer brands, according to a press release statement. According to InvestingPro analysis, Adobe currently appears undervalued, with 13 additional exclusive insights available to subscribers.

The consumer goods company, which owns brands including Sharpie, Rubbermaid, Coleman and Yankee Candle, is adopting Adobe Firefly Services, Firefly Custom Models and Adobe Express to enhance its content production capabilities for digital marketing and e-commerce. Adobe, with annual revenue of $22.04 billion and net income of $6.75 billion in the last twelve months, has established itself as a leader in digital solutions.

Newell reported that using Firefly Custom Models accelerated content production for Paper Mate packaging by 75%, while Adobe Express reduced the time to create social assets for Oster products by 33%.

"We leaned into Adobe to rebuild our content supply chain and integrate our marketing technology stack with a vision of delivering five times more content," said Melanie Huet, Co-CEO of Newell’s Home & Commercial Segment.

The partnership builds on Newell’s existing use of Adobe’s content management solutions, including Adobe Workfront for workflow streamlining and Adobe Experience Manager for asset governance.

The implementation comes as Newell seeks to strengthen its omnichannel marketing strategy across social media and e-commerce platforms at a time when demand for digital content is increasing. For deeper insights into Adobe’s financial health and growth potential, including comprehensive analysis and expert recommendations, check out the Pro Research Report available exclusively on InvestingPro.

The company expects the enhanced content supply chain will enable it to produce thousands of new creative assets annually by reducing time spent on repetitive tasks such as content resizing for different digital channels.

In other recent news, Adobe is preparing to release its fiscal second-quarter earnings, with analysts closely watching its performance amid increasing competition. Stifel has maintained a Buy rating on Adobe, with a target price of $525, citing positive partner sentiment following Adobe’s Summit event. Meanwhile, KeyBanc reaffirmed its Sector Weight rating, highlighting strong engagement with Adobe’s AI capabilities, particularly Firefly, as revealed by their recent survey. Citi adjusted its price target for Adobe to $465 while maintaining a Neutral rating, noting challenges from Canva and the impact of AI-driven price increases.

A former Adobe product manager emphasized the growing competition from Canva, particularly in the small and medium-sized business sector, where Canva’s integrated tools are gaining popularity. Despite these challenges, Citi pointed out positive indicators such as strong web traffic and favorable feedback on Adobe’s digital experience offerings. This suggests that Adobe continues to gain traction with enterprise customers. As Adobe approaches its earnings report, investors will be keenly observing its strategic moves and financial performance to understand its position in the competitive landscape.

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