Incorporating generative AI into Adobe’s creative software ecosystem is paying off, according to the company’s latest earnings. While its share price has fallen more than 37 percent this year at the time of writing, Adobe is reporting a jump in annual profits driven by record revenue of $23.77 billion for 2025 – an increase of 11 percent year-on-year, largely due to AI.
“Adobe’s record fiscal 2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-powered tools,” Adobe CEO Shantanu Narayan said in the press release. According to Narayan, the company is now aiming to grow annual recurring revenue (ARR) to 10.2 percent in 2026 “by leveraging our innovative generative and agentic platforms and expanding our customer base.”
Adobe has worked extensively on AI over the past two years, and launched its own family of Firefly Generator AI models for images, video, and audio implemented in its creative apps and marketing solutions. According to its earnings report, AI-influenced ARR now makes up more than a third of Adobe’s total business.
According to Narayan, one of Adobe’s top accomplishments this year was “establishing itself within the leading AI ecosystem with partnerships and integrations into AWS, Azure, Google Gemini, Humean, Microsoft Copilot, OpenAI, and others.” In other words, if Adobe can’t compete directly with AI rivals, it’s betting on third-party integration to help it survive the continued conquest of generative AI over the creative industry.
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