Adobe Inc (NASDAQ:ADBE) reported stronger-than-expected fourth-quarter results on Wednesday, driven by growth in both its Creative and Business subscriptions and the expanding adoption of AI-powered tools.
The software giant posted revenue of $6.19 billion for the quarter, up 10% from a year earlier and ahead of analysts’ estimate of $6.11 billion.
Non-GAAP earnings per share came in at $5.50, topping the consensus of $5.39. Remaining performance obligations (RPO) totaled $22.52 billion, also above expectations.
Total customer group subscription revenue rose 12% to $5.96 billion, reflecting solid demand across Adobe’s suite of products. Segment performance showed Digital Media revenue increased 11% to $4.62 billion, while Digital Experience revenue grew 9% to $1.52 billion.
Subscription revenue for Business Professionals & Consumers climbed 15% to $1.72 billion, and Creative & Marketing Professionals subscriptions increased 11% to $4.25 billion.
For the first quarter of fiscal 2026, Adobe expects revenue between $6.25 billion and $6.3 billion, slightly above the $6.24 billion consensus, and non-GAAP EPS of $5.85–$5.90, compared with estimates of $5.66.
Looking ahead to fiscal 2026, the company projects revenue of $25.90 billion–$26.1 billion, driven by continued subscription growth in both Creative and Business segments. Total ending annual recurring revenue (ARR) is expected to grow 10.2% year-on-year. Non-GAAP earnings are projected at $23.30–$23.50.
CEO Shantanu Narayen highlighted the company’s role in the global AI ecosystem, saying, “Adobe’s record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools.”
Adobe ended FY2025 with $25.20 billion in total ARR, up 11.5% from the prior year, and generated $10.03 billion in operating cash flow.
Shares of Adobe added 0.9% in after-hours trading following the earnings release.