Key Points:
- Earnings beat: $5.50 EPS, $6.19B revenue.
- Outlook strong: $23.40 EPS, $26B revenue.
- Moves: $1.9B Semrush deal, ChatGPT integration.
Adobe reported stronger-than-expected fourth-quarter results, delivering solid gains in both earnings and revenue. The company said demand for its digital media and marketing software remained steady through the end of its fiscal year. Analysts noted that the results exceeded Wall Street expectations, and Adobe also issued higher guidance for the current quarter.
Adobe posted adjusted earnings of $5.50 a share on revenue of $6.19 billion for the quarter ending November 28. Analysts had expected $5.40 a share on $6.11 billion in revenue. Earnings rose 14 percent from the prior year, while revenue increased 10 percent. For the first fiscal quarter, Adobe projects adjusted earnings of $5.88 a share on $6.28 billion in revenue. Both figures are above current analyst estimates.
Full-Year Guidance Points to Steady Growth Ahead
The company expects full-year adjusted earnings of $23.40 a share and revenue of $26 billion. These projections slightly exceed analyst expectations and signal confidence in the company’s product ecosystem. Leadership said Adobe’s record performance reflects increased use of its AI-driven tools and the expansion of its digital platforms.
Executives highlighted growth in generative and agentic technologies, along with broader customer adoption across creative and enterprise markets. The company said these trends support its goal of delivering double-digit annual recurring revenue growth in the coming year.
In after-hours trading, Adobe’s stock moved between small gains and losses, most recently trading near 345.25. During the regular session, the stock closed at 343.13, down 0.4 percent.
Market Reaction Follows Product Moves and Competitive Pressure
This earnings report is Adobe’s first since announcing its planned $1.9 billion acquisition of Semrush, a search engine optimization company. The deal is part of Adobe’s strategy to strengthen its marketing technology portfolio.
Adobe’s stock has fallen nearly 23 percent this year amid concerns that emerging AI-based creative applications could challenge the company’s market position. Industry analysts say competition has intensified as new AI tools offer faster image generation, design assistance, and automated editing.
Earlier in the day, Adobe announced that several of its flagship creative products will soon be available on OpenAI’s ChatGPT platform. Photoshop, Express, and Acrobat will be offered in free, basic versions to ChatGPT’s large user base. Adobe said the goal is to introduce its tools to new audiences and encourage future adoption.
Strategic Positioning in a Shifting AI Landscape
Adobe’s stock says integrating core creative tools into widely used AI platforms is part of its effort to reach customers in new ways. The company has stated that awareness and early engagement remain important as more creators experiment with generative technologies.
Some industry observers have expressed caution. Earlier this week, Wedbush Securities placed Adobe on a list of companies facing heightened competitive pressure from AI-driven newcomers. Despite this, Adobe leadership maintains that continued investment in its software ecosystem, combined with AI-enabled enhancements, will support long-term growth.
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