Adobe reported better-than-expected fourth quarter results as the company saw strong adoption of its AI-driven products.
The company reported fourth quarter earnings of $1.86 billion, or $4.45 a share, on revenue of $6.19 billion, up 10% from a year ago. Non-GAAP fourth quarter earnings were $5.50 a share.
Wall Street was looking for Adobe to report non-GAAP earnings of $5.40 a share on revenue of $6.11 billion.
CEO Shantanu Narayen said the company is advancing its generative and agentic AI platforms and targeting double-digit annual recurring revenue growth in the fiscal year ahead.
Adobe’s recent acquisition of Semrush will bolster the digital experience platform, said Anil Chakravarthy, President of Adobe’s Digital Experience unit. “The pending acquisition of Semrush, which we announced a few weeks ago, brings complementary assets to help us address marketers’ growing need for sustained brand relevance in AI search,” he said.
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Narayen said the vision for business professionals and consumers is to deliver "new conversational and agentic interfaces in Adobe Reader, Acrobat and Express to provide a freemium integrated experience for billions of users."
The vision for creators is to "deliver the most comprehensive power and precision applications from ideation and creation to production and delivery," said Narayen. He said the goal for marketing pros is to deliver the tools to "create a brand or address the expanding needs of the content supply chain in the era of AI to deliver customer experience orchestration solutions."
For fiscal 2025, Adobe reported earnings of $16.70 a share on revenue of $23.77 billion, up 11% from a year ago.
Adobe saw strong demand in all of its customer groups, according to CFO Dan Durn. Subscription revenue for Adobe was $5.96 billion, up 12% from a year ago. Business professional and consumer subscription revenue was up 15% from a year ago, and creative and marketing professional subscription revenue was up 11%.
As for the outlook, Adobe projected first quarter non-GAAP earnings of $5.85 a share to $5.90 a share on revenue of $6.25 billion to $6.30 billion. For fiscal 2026, Adobe projected non-GAAP earnings of $23.30 to $23.50 per share on revenue of $25.9 billion to $26.1 billion.
