Is AI finally paying off for Adobe? Software giant publishes record financial results

Adobe has revealed its “record” financial results for both the fourth quarter and the fiscal year 2025. At face value it would appear to be very good reading for the editing software behemoth and its investors. Such is the uncertainty surrounding AI profitability, Adobe has been reluctant to publish AI-driven financial results, directly, but is now including what it calls Total AI-Influenced ARR. This is Annual Recurring Revenue “from the product offerings and tiers (...) enhanced by AI features and functionalities embedded in the product.”

Adobe’s revenue rose to a record $6.19 billion in Q4, which is 10% year-over-year growth, while cash flows from operations hit a record $3.16 billion. The Digital Media segment, which includes Creative Cloud, boasted 11% year-over-year growth with revenue at $4.62 billion.

Total Customer Group subscription revenue enjoyed 12% year-over-year growth, with $5.96 billion in revenue. And despite rising subscription costs drawing the ire of the Creative Cloud community, the numbers add up, with Business Professionals & Consumers subscription revenue rising to $1.72 billion, for 15% year-over-year growth.

And while Q4 was a highlight, it was a strong year overall, with Adobe exceeding targets for FY2025. Revenue hit $23.77 billion, representing 11% year-over-year growth. $17.65 billion can be attributed to the Digital Media segment, with Total Customer Group subscription revenue drawing in $22.80 billion.

Adobe CEO, Shantanu Narayen, said “Adobe’s record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools,” and that means high hopes for the current fiscal year. “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 has an awful lot riding on its optimistic adoption of AI, and according to Reuters, monthly active users for its free-to-use AI offerings have surpassed 70 million, translating to a 35% increase year over year. The outlet quoted Adobe CFO Dan Durn who revealed that embedding generative AI into core Creative Cloud plans was paying off.

But while Adobe’s financial results are certainly moving in the right direction, a large degree of uncertainty regarding the profitability of artificial intelligence still exists. At the time of writing, Adobe stock is up, but an article from TipRanks has highlighted reticence from some analysts, despite financial results exceeding Wall Street expectations.

This is something we’ve seen before. Only a couple of months ago, stock market analysts Morgan Stanley downgraded Adobe’s stock rating amid record-breaking profits. Ultimately, publishing financial results within a bubble is one thing, but Adobe’s strength within the AI sphere rests on how it compares to the performance of its competitors.

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