Adobe reports record $23.77B revenue as AI bet pays off with double-digit growth in 2025

Adobe sees a bright future as AI bet pays off

Entrenching generative AI into Adobe's creative software ecosystem is paying off, according to the company's latest earnings. While its share price has fallen by more than 37 percent this year at the time of writing, Adobe is reporting a bump in annual profits driven by record revenue of $23.77 billion for 2025 -- an 11 percent increase year-over-year that it's largely attributing to AI. "Adobe's record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools," said Adobe CEO Shantanu Narayen in the press release. The company is now targeting to increase annual recurring revenue (ARR) by 10.2 percent in 2026 by "advancing our innovative generative and agentic platforms and expanding our customer base," according to Narayen. Adobe has gone all-in on AI over the last two years, launching its own family of Firefly generative AI models for image, video, and audio applied across its creative apps and marketing solutions. AI-influenced ARR now makes up more than one-third of Adobe's overall business, according to its earnings report. According to Narayen, one of Adobe's top accomplishments this year was "establishing ourselves within leading AI ecosystems with partnerships and integrations across AWS, Azure, Google Gemini, HUMAIN, Microsoft Copilot, OpenAI, and others." In other words, if Adobe can't compete with AI rivals head-on, it's betting on third-party integrations to help it survive generative AI's relentless conquest of the creative industry.

Adobe's Revenue Breaks Yet More Records as It Closes Out 2025

Adobe has announced that it has achieved revenue of $6.19 billion in Q4 2025, growing 10% year-over-year. In FY2025 total, Adobe pulled in record revenue of $23.77 billion, growing 11% year-over-year. The numbers are strong for Adobe. In the fourth quarter alone, the Digital Media segment saw revenue of $4.62 billion, which represents 11% year-over-year growth. It also saw record cash flows for the year of $3.16 billion. "Adobe's record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools," Shantanu Narayen, chair and CEO, at Adobe says. "By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026." "Adobe delivered another outstanding year, fueled by strong global demand for our AI solutions across Business Professionals & Consumers and Creative & Marketing Professionals customer groups," Dan Durn, executive vice president and CFO, at Adobe adds. "Looking ahead to FY2026, we are confident in our ability to deliver industry-leading innovations, double-digit ARR growth and world class profitability." In June, Adobe wasn't tying any of its revenue to AI, but that has changed. The company now says that what it calls "AI-influenced Annual Recurring Revenue (ARR)" is now over one third of its overall business and the company intends to continue to launch what it calls "AI-first offerings" as a result. Additionally, it saw Generative Credit consumption -- the way Adobe regulates how often a user can use its Generative AI tools, which it began actively tracking earlier this year -- tripled in Q4 2025, which it says is a "great indicator of high-value usage." Earlier this year, Adobe seemed to admit that its own Firefly AI model wasn't able to maintain pace with models from Google, OpenAI, and others and it opened its software platforms to these other models. But it didn't do so magnanimously, as accessing them still requires a payment to Adobe through its "Premium generative features" designation. It also may have been able to inflate its generative AI use in this quarter by giving all new and existing subscribers of select plans (which includes Creative Cloud Pro, Firefly Standard, Pro, and Premium, and credit add-on subscriptions ) the ability to use unlimited generations on all AI image models and the Firefly Video model until December 15, 2025. When users aren't being limited, they're going to use more. Adobe likely hopes that it can create a habit with these increased usages now and hope users won't be able to adjust back down and will be forced to pay for it going forward. Adobe's profits are up too (up 9% over 2024), but AI is expensive, and it's unclear how much longer it can pay for the cost of AI and continue to post increased profits as well without raising its prices. Whatever the case, Adobe's strategy is still working and the company continues to rake in the dollars.

Adobe beats earnings expectations as AI tools drive double-digit revenue growth - SiliconANGLE

Adobe beats earnings expectations as AI tools drive double-digit revenue growth Adobe Inc. reported better-than-expected earnings and revenue in its fiscal 2025 fourth quarter today and also impressed with a forecast ahead of analyst expectations. For the quarter that ended on Nov. 28, Adobe reported adjusted earnings per share of $5.50, up from $4.81 per share in the same quarter of the previous fiscal year, on revenue of $6.19 billion, up 10% year-over-year. Both figures were ahead of the $5.40 per share and revenue of $6.11 billion expected by analysts. Adobe's Digital Media segment saw revenue of $4.62 billion in the quarter, up 11% year-over-year, while Digital Experience revenue came in at $1.52 billion, up 9% year-over-year. The company saw record cash flow from operations of $3.16 billion and as of Nov. 28, Adobe had remaining performance obligations of $22.52 billion, an impressive number from any company. Key to Adobe's strong figures was subscription revenue, which was up 12% year-over-year to $5.96 billion, consisting of business professional and consumer subscription revenue of $1.72 billion, up 15% year-over-year and creative and marketing professional subscription revenue of $4.25 billion, up 11%. Business highlights in the quarter included updates to Adobe's suite of products in September that included new features in Firefly Boards and Photoshop gaining access to Google LLC's Nano Banana image generation model. October started with Adobe launching its first set of artificial intelligence agents with a new set of agentic offerings aimed squarely at marketers in the business-to-business industry. Later in the month, the company also launched Adobe AI Foundry, a service that lets businesses create custom generative AI models and added AI agents to its GenStudio Platform. For the full fiscal year 2025, Adobe reported adjusted earnings per share of $20.94, up from $18.42 the year prior, on revenue of $23.77 billion, up 11% year-over-year. "Adobe's record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools," said Shantanu Narayen, chair and chief executive officer of Adobe, in the company's earnings release. "By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026." For its fiscal 2026 first quarter, Adobe expects adjusted earnings per share of $5.85 to $5.90 on revenue of $6.25 billion to $6.3 billion. Analysts had been expecting a revenue outlook of $6.23 billion. For the full year, the company expects adjusted earnings of $23.30 to $23.50 per share on revenue of $25.9 billion to $26.1 billion; analysts had been expecting a full year revenue outlook of $25.89 billion.

Adobe sees upbeat annual results on AI, design software strength

Since the launch of ChatGPT in 2022, Adobe has made heavy bets on generative AI with its Firefly tool, which can be integrated across the company's Creative Cloud suite to create images and videos, in an attempt to draw users in. Adobe forecast fiscal 2026 revenue and profit above Wall Street expectations on Wednesday, signaling strong demand for the Photoshop maker's design tools and increasing monetization for its artificial intelligence offerings. Since the launch of ChatGPT in 2022, Adobe has made heavy bets on generative AI with its Firefly tool, which can be integrated across the company's Creative Cloud suite to create images and videos, in an attempt to draw users in. While Adobe's products have become a staple for students, creatives and enterprises, the company is grappling with rising competition in the industry it dominates, with AI proliferation allowing rivals to rapidly grow their businesses and win contracts. Adobe is seeing strong growth in AI adoption, with monthly active users for its freemium offerings increasing 35% year over year to over 70 million, CFO Dan Durn told Reuters. "We're seeing significant strength in Creative Cloud Pro, Photoshop, Lightroom," he said, adding that natively embedding generative AI into these products is paying off. In its push into the ad market, last month, Adobe said it would acquire Semrush for $1.9 billion to help marketers better understand how their brands are seen by online consumers through searches on websites and GenAI bots such as ChatGPT and Gemini. Adobe also said that from fiscal 2026, it would rejig some forecast and reporting segments to focus on subscription revenue from various customer groups as well as year-ending annual recurring revenue. The company expects annual revenue between $25.90 billion and $26.10 billion, compared with estimates of $25.87 billion, according to data compiled by LSEG. On an adjusted basis, Adobe expects annual earnings per share of between $23.30 and $23.50, above estimates of $23.34 per share. It reported fourth-quarter revenue of $6.19 billion, beating estimates of $6.11 billion.

Adobe Approaches Q4 With $5 Billion AI Tailwind: Can 'Agentic' Innovation Silence Skeptics? - Adobe (NASDAQ:ADBE)

As Adobe Inc. (NASDAQ:ADBE) prepares to close Fiscal Year 2025, the creative giant heads into the fourth quarter with over $5 billion in AI-influenced Annual Recurring Revenue (ARR), and investors remain fixated on whether generative AI will eventually cannibalize the company's core "seat-based" revenue model. To counter this, management is pivoting the narrative toward "Agentic" AI -- autonomous software that expands workflows rather than replacing them. Check out ADBE's stock price here. The 'Agentic' Pivot And AI Monetization Management's strategy for the fourth quarter and beyond centers on shifting from passive AI assistance to active "Agentic" workflows. During the third-quarter earnings call, Digital Experience President Anil Chakravarthy emphasized Adobe's unique position to fuse "creativity, marketing, and agentic AI," enabling enterprises to automate complex tasks such as brand discovery and campaign orchestration. This strategic pivot is backed by tangible financial momentum. Adobe's "AI-first" products -- such as Firefly and Acrobat AI Assistant -- exceeded their $250 million annualized revenue target a quarter ahead of schedule. Bulls, including analysts at Bernstein, view these tools as drivers of "substantial revenue uplift," validating the company's ability to monetize innovation rapidly. See Also: Adobe Q2 Earnings: Revenue Beat, EPS Beat, Raised FY Guidance, Continued Investments In AI Innovation The 'Switzerland' Defense To further insulate itself from disruption, Adobe has adopted what Stifel analysts describe as a "Switzerland of GenAI" strategy. By integrating third-party models from competitors like OpenAI and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google alongside its own Firefly models, Adobe aims to remain the central hub for creative work. This positioning has resonated with enterprise clients; "One Adobe" cross-cloud deals grew 60% year-over-year in the third quarter, suggesting that large organizations are consolidating onto the platform rather than defecting. Financial Fortress vs. Wall Street Caution Despite a consistent "beat and raise" cadence throughout FY25, analyst sentiment remains mixed regarding the near term. Barclays maintains a cautious stance ahead of FY26 guidance, noting that the impact of the pending $1.9 billion acquisition of SEMrush is not yet fully factored into forward-looking models. However, management continues to project confidence. CEO Shantanu Narayen has explicitly stated his belief that the stock is undervalued, a sentiment backed by the repurchase of approximately 8 million shares in the third quarter alone. For the fourth quarter, Adobe targets revenue between $6.075 billion and $6.125 billion, aiming to cap a pivotal year with double-digit growth. Meanwhile, analysts expect earnings of $4.99 per share, according to Benzinga Pro. ABDE Underperforms In 2025 Shares of ADBE ended 1.53% higher at $344.32 apiece on Tuesday. It has declined by 22.57% year-to-date and 37.16% over the year. Benzinga's Edge Stock Rankings indicate that ADBE maintains a stronger price trend over the short term but a weak trend in the medium and long terms, with a poor value ranking. Additional performance details are available here. Read Next: Adobe Stock Climbs On Record Q3 Revenue And More Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Charles-McClintock Wilson / Shutterstock.com ADBEAdobe Inc$345.180.25%OverviewGOOGAlphabet Inc$317.11-0.20%GOOGLAlphabet Inc$316.32-%Market News and Data brought to you by Benzinga APIs

Adobe targets over 10% ARR growth in fiscal 2026 amid accelerating AI adoption and Semrush acquisition (NASDAQ:ADBE)

Earnings Call Insights: Adobe Inc. (ADBE) Q4 2025 Management View * Shantanu Narayen, Chairman & CEO, announced "record revenue of $23.77 billion and non-GAAP EPS of $20.94," citing "significant AI-influenced and AI-first ending ARR, which accelerated through the year." He highlighted Adobe's strategic focus on leveraging AI to serve Business Professionals and This article was automatically generated by an AI tool based on content available on the Seeking Alpha website, and has not been curated or reviewed by humans. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of such articles cannot be guaranteed. This article is intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Adobe's growth is driven by AI-infused products, ARR expansion, generative AI monetization, and the pending Semrush acquisition. Adobe integrates generative AI across flagship apps, introduces new interfaces, expands credit consumption, and reports increased enterprise efficiency and new monetization avenues. Risks include the exclusion of Semrush in current guidance, potential challenges in ARR growth and monetization consistency, and execution-related concerns.

Adobe forecasts annual revenue above estimates

Dec 10 (Reuters) - Adobe forecast fiscal 2026 revenue above Wall Street expectations on Wednesday, signaling strong demand for the Photoshop maker's design tools and increasing monetization for its artificial intelligence offerings. The company expects annual revenue between $25.90 billion and $26.10 billion, compared with estimates of $25.87 billion, according to data compiled by LSEG. Since the launch of ChatGPT in 2022, Adobe has made heavy bets on generative AI with its Firefly tool, which can be integrated across the company's Creative Cloud suite to create images and videos, in an attempt to draw users in. "By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026," said CEO Shantanu Narayen. The forecast could potentially allay some investor fears that Adobe's rate of AI monetization would leave the software giant trailing Figma and other newer players in the market. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)