Photoshop 26.8, released on June 17, 2025 (aka Photoshop 2025.6), brings practical enhancements to text handling and image file compatibility, with small but measurable improvements for compositors, matte painters, and layout artists.
Auto-adjusting typography with Dynamic Text
Text layout gets a logic boost: with Dynamic Text, text layers now resize and reflow automatically when you adjust their bounding box. This includes real-time updates to size, spacing, and layout—intended for use in templates, posters, and graphics with strict dimensional requirements. Multiple fonts and styles inside a single block are supported, but typographers beware: Adobe still hasn’t enabled leading control.
To activate it, just use the Type tool and draw a text box. It behaves like it always should have.
Cloud for cutouts
For Select Subject and Remove Background, you can now optionally switch to a cloud-based processing mode for better results around hair, transparency, and other fiddly details. This is set via Preferences > Image Processing > Select Subject and Remove Background. Results are reportedly sharper around complex edges—but test this before committing to new matting workflows.
File format upgrades: AVIF and JPEG XL
Photoshop now supports AVIF and JPEG XL formats for opening, editing, and saving. These modern codecs support native HDR, broader color depths, and efficient lossy/lossless compression—ideal for web-bound renders or game textures needing smaller footprints.
Requirements and pricing
Photoshop 26.8 requires Windows 10+ or macOS 12.0+ and remains subscription-only. Prices start at US $239.88/year for the Photography Plan or US $263.88/year for a standalone license. As always, production pipelines should validate the new features before incorporating them into daily workflows—especially if automation is involved.
Official feature summary // Photoshop desktop June 2025 release