• The lawsuit requested an order to block the use of the "Foundry" name in Adobe’s product, as well as monetary damages that have not been disclosed. 
• Adobe is slated to report its Q1 earnings after-hours on Thursday. 
• Wall Street expects the company to post quarterly revenue of $6.28 billion, about 10% higher than the same period last year, according to Fiscal.ai.

Shares of Adobe Inc. (ADBE) slipped lower for the fourth consecutive session on Thursday amid reports of a trademark lawsuit from The Foundry Visionmongers over Adobe’s Firefly Foundry name.

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ADBE stock fell 1.3% amidst the lawsuit that comes ahead of its first-quarter (Q1) 2026 earnings results due later in the day.

According to a report from Reuters, the British software company, owned by Roper Technologies (ROP), said in a lawsuit with the California federal court on Wednesday that the San Jose-based firm’s Firefly Foundry was in violation of its trademark rights in the "Foundry" name.

The lawsuit requested an order to block the use of the "Foundry" name in Adobe’s product, as well as monetary damages that have not been disclosed.

Lawsuit Details

Foundry reportedly said in the lawsuit that Adobe’s chosen name for its ‌generative artificial intelligence tools would likely create confusion among consumers over its own products.

The company also noted that its content-creation software also had AI capabilities, much like Adobe’s, which would further cause confusion in similar ​markets.

Adobe launched the Firefly Foundry product in 2025, positioned as private AI models that enable training on proprietary branded content and guidelines to create a range of media, including text, images, and videos.

Q1 Earnings

Adobe is slated to report its Q1 earnings after-hours on Thursday. Wall Street expects the company to post quarterly revenue of $6.28 billion, about 10% higher than the same period last year, according to Fiscal.ai. Earnings per share is expected to come in at $5.87.

Meanwhile, investors are eyeing company updates on AI initiatives after Adobe said in its last earnings call that its AI-influenced annual recurring revenue was over a third of the overall business.

What Are Stocktwits Users Saying?

On Stocktwits, retail sentiment around ADBE shares climbed from ‘bearish’ to ‘neutral’ territory over the past 24 hours amid ‘normal’ message volumes.

One bearish user said Adobe was a “dead stock,” adding that AI would make the business obsolete.

Shares of ADBE have declined more than 38% in the past year.

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