Adobe (NASDAQ:ADBE) issued an annual revenue and profit forecast that exceeded expectations, suggesting the company may be gaining traction as it intensifies efforts to monetize AI-enhanced creative tools.
The software maker, long a staple among creative professionals, has been rolling out AI features across its product portfolio to speed up image and video creation. Monthly active users of its freemium offerings climbed 35% year-over-year to more than 70 million. However, intensifying competition for enterprise contracts—driven in part by widespread AI adoption—has raised concerns about pricing pressure.
Adobe projected full-year revenue between $25.90 billion and $26.10 billion, compared with estimates of $25.87 billion. Adjusted earnings were forecast at $23.30 to $23.50 per share, above the midpoint of analyst expectations at $23.34.
Fourth-quarter revenue rose 10% from a year earlier to $6.19 billion, surpassing forecasts of $6.11 billion. Adjusted earnings increased to $5.50 per share. Digital media revenue grew 11% to $4.62 billion, while digital experience revenue advanced 9% to $1.52 billion. Customer subscription revenue increased 12% to $5.96 billion, led by a 15% gain in the business professionals and consumer segment.
