Adobe expects to see revenue of $25.9 billion to $26.1 billion in fiscal year 2026, saying its growth will be driven in part by the rapid adoption of its artificial intelligence-powered tools.
“By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR [annual recurring revenue] growth in FY 2026,” Adobe Chair and CEO Shantanu Narayen said in a Wednesday (Dec. 10) press release.
Adobe Executive Vice President and Chief Financial Officer Dan Durn added in the release, “We are confident in our ability to deliver industry-leading innovations, double-digit ARR growth and world-class profitability.”
Bloomberg reported Wednesday that Adobe’s annual forecast was “upbeat” and that the midpoint of the company’s guidance was higher than the average estimate.
The report added that investors have been concerned that Adobe and other application software providers could see their businesses disrupted by new players introducing AI-powered tools.
Amid those fears, Adobe’s stock has lost about 20% of its value this year, according to the report.
However, Adobe’s results for fiscal year 2025 exceeded analysts’ projections, per the report.
The company said in its Wednesday press release that during the fiscal year that ended Nov. 28, its revenue grew 11% year over year to reach about $23.8 billion.
During the fourth quarter alone, it achieved record revenue of about $6.2 billion, which was up 10% year over year, according to the release.
Durn said in the release, “Adobe delivered another outstanding year, fueled by strong global demand for our AI solutions across Business Professionals & Consumers and Creative & Marketing Professionals customer groups.”
Adobe also announced Wednesday that it is adding three of its apps — Photoshop, Adobe Express and Acrobat — to OpenAI’s ChatGPT, enabling users to ask the chatbot to create designs or edit photos and PDFs.
“By combining the power of Adobe’s creative technology with ChatGPT’s conversational interface, Adobe apps for ChatGPT make creativity accessible for everyone,” Adobe said in a press release.
In November, Adobe said it plans to acquire Semrush to add that company’s generative engine optimization (GEO) capabilities to Adobe’s range of tools for marketers.
It was reported in October that during Adobe’s annual conference, the company sought to reassure investors by adding AI to its software even as it is challenged by new competitors.
Source: https://www.pymnts.com/