Is the SaaS Apocalypse Over? Adobe Bulls Say the Software Trade Is Healing

The "SaaS apocalypse" phrase captured a brutal reset in software valuations. Higher rates, slower growth, tighter IT budgets, and fear that generative AI would commoditize parts of the software stack all pressured the group.

Adobe is now being watched as a comeback proxy. The bull case is that AI does not destroy the incumbent; it gives Adobe more features to sell inside products customers already use.

Why Adobe matters to the software trade#

Adobe has a large installed base, subscription revenue, creative workflows, enterprise relationships, and an obvious AI use case. That makes it a useful test for whether mature software companies can turn AI from a valuation threat into a monetization tool.

The market will look for signs that AI features support pricing, retention, usage, and new customer demand. If those show up, investors may become more willing to own software again.

The takeaway#

Calling the SaaS apocalypse "over" is early. But Adobe's rebound case gives software bulls a clearer argument: AI can be embedded into existing workflows, not just used to attack them.