Adobe (ADBE) reported record-high fourth-quarter fiscal 2025 financial results, which the company said were driven by rapid adoption of its artificial intelligence-powered tools.
Adobe’s fourth quarter results and its outlook surpassed consensus estimates. Shares had ticked up 1% during early post-market trading.
For the quarter ended November 28, the creative software company reported adjusted earnings per share of $5.50 versus the consensus estimate of $5.40. GAAP EPS was $4.45 compared to the $4.28 consensus.
Revenue for the fourth quarter increased 10% year over year to total $6.19B, which was more than the estimate of $6.11B. On a business segment basis, subscription revenue accounted for $5.99B, digital experience was $1.52B, and product revenue was $74M. Remaining performance obligations increased 13% to $22.52B, which was also more than the $22.28B estimate.
Looking ahead, Adobe projects its 2026 revenue to range from $25.9B to $26.1B, with a midpoint of $26B, which is more than the $25.9B estimate. The company expects first-quarter revenue to range from $6.25B to $6.3B, which is more than the $6.24B estimate. It forecasts first-quarter adjusted EPS ranging from $5.85 to $5.90, which again clears the $5.66 estimate.
“Adobe’s record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools,” said Adobe CEO Shantanu Narayen. “By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026.”
Earlier in the day, Adobe announced a new partnership with OpenAI (OPENAI).