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ADBE
FY2025 Q4
Improving
Adobe Inc. earnings call
Buzzberg read
AI-influenced ARR now exceeds one-third of total book
Adobe closed FY2025 with record revenue and ARR, driven by AI-infused products (Firefly, Acrobat Studio, GenStudio) and expanding model partnerships. Management guided to double-digit ARR growth in FY26, the highest starting point ever, and highlighted an inflection in AI adoption as generative credit consumption tripled sequentially. FY25 revenue $23.77B (+11% YoY), non-GAAP EPS $20.94 (+14% YoY). Q4 revenue $6.19B, record net new ARR.
Buzzberg read AI-influenced ARR now exceeds one-third of total book Adobe closed FY2025 with record revenue and ARR, driven by AI-infused products (Firefly, Acrobat Studio, GenStudio) and expanding model partnerships. Management guided to double-digit ARR growth in FY26, the highest starting point ever, and highlighted an inflection in AI adoption as generative credit consumption tripled sequentially. FY25 revenue $23.77B (+11% YoY), non-GAAP EPS $20.94 (+14% YoY). Q4 revenue $6.19B, record net new ARR. Read full analysisCollapse analysis
Adobe closed FY2025 with record revenue and ARR, driven by AI-infused products (Firefly, Acrobat Studio, GenStudio) and expanding model partnerships. Management guided to double-digit ARR growth in FY26, the highest starting point ever, and highlighted an inflection in AI adoption as generative credit consumption tripled sequentially. FY25 revenue $23.77B (+11% YoY), non-GAAP EPS $20.94 (+14% YoY). Q4 revenue $6.19B, record net new ARR.
- Digital Media ARR $19.2B (+11.5% YoY); total Adobe ARR $25.2B (revalued to $25.66B entering FY26).
- Generative credit consumption up 3x QoQ; Firefly subscriptions doubled QoQ; 3x growth in AI feature usage in Acrobat.
- FY26 guidance: total revenue $25.9-26.1B, non-GAAP EPS $23.30-23.50, total Adobe ARR growth 10.2% YoY ($2.6B net new).
DIGITAL_EXPERIENCE Revenue$5.86BReported
DIGITAL_MEDIA Revenue$17.65BReported
Revenue$6.194B+3% QoQ
EPS$5.50+4% QoQ
6 grounded callouts
What matters now
The highest-signal changes from the call.
AI
Generative credit consumption grew 3x quarter-over-quarter
Product
Acrobat Studio upgraded by nearly 50% of renewing ETLAs
Show 3 more callouts
Product
Firefly Freemium MAU surpassed 70 million, up 35% YoY
Monetization
Firefly Foundry drives large enterprise expansion, example $7M add-on
Strategy
SEMrush acquisition to boost brand visibility in agentic web
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| DIGITAL_EXPERIENCE Revenue | $5.86B | Reported |
| DIGITAL_MEDIA Revenue | $17.65B | Reported |
| Revenue | $6.194B | +3% QoQ |
| EPS | $5.50 | +4% QoQ |
| Gross margin | 88.92% | Reported |
| Operating margin | 36.5% | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $23.30–$23.50 | $23.40 | Guided |
| EPS | FY2026 Q1 | $5.85–$5.90 | $5.88 | Guided |
| Operating margin | FY2026 | 45% | 45% | Guided |
| RevenueCREATIVE_MARKETING_SUB | FY2026 | $17.75B–$17.9B | $17.825B | Guided |
| Revenue | FY2026 | $25.9B–$26.1B | $26B | Guided |
| Revenue | FY2026 Q1 | $6.25B–$6.3B | $6.275B | Guided |
| RevenueBUSINESS_CONSUMER_SUB | FY2026 | $7.35B–$7.4B | $7.375B | Guided |
AI, capex & demand read
Management read
Confident
Management expressed strong confidence in the business momentum, highlighted record results, and provided upbeat commentary on AI-driven growth opportunities and the FY26 outlook.
Management AI read
Management highlighted significant AI influence across the business, with AI-influenced ARR now over one-third of the total book. They emphasized strong adoption of generative AI features, including 3x quarter-over-quarter growth in generative credit consumption and new AI-first products like Firefly Foundry and Acrobat Studio. They also noted expanding AI partnerships and integration into third-p
Investment and capacity
Capex not specifically discussed on this call.
all 6 named companies below
Companiesreturns since call
Partners
OPENAI
Partners
David Wadwani
Adobe integrates OpenAI models into its creative apps, expanding the ecosystem and providing OpenAI with distribution.
Evidence
“We significantly expanded Firefly to become the only app with our own commercially safe models and over 25 leading partner models, including Google, OpenAI”
Partners
David Wadwani
Generative AI traffic (from LLMs and agentic browsers) to US retail sites is up 760% year-to-date in the 2025 holiday season. — Indicates an explosive shift in online traffic sources that will force retailers and ad platforms to optimize for AI-generated queries, creating new winners and losers in digital marketing.
Evidence
“In partnership with Google and YouTube, we are introducing AI-driven audio and video tools to streamline how creators remix YouTube Shorts”
Partners
Shantanu Narayen
Adobe integrates with Microsoft’s Azure and Copilot, expanding reach into enterprise AI workflows.
Evidence
“establishing ourselves within leading AI ecosystems with partnerships and integrations across AWS, Azure, Google Gemini, Humane, Microsoft Co-Pilot, OpenAI”
BYTEDANCE
Partners
Anil Chakravarty
Adobe expands ad network integration with TikTok (ByteDance), enabling brands to activate content across social platforms.
Evidence
“Expanded ad network partnerships with Amazon, Google, LinkedIn, Microsoft, Snap, and TikTok”
Supply chain
Supply chain
Anil Chakravarty
Generative AI traffic (from LLMs and agentic browsers) to US retail sites is up 760% year-to-date in the 2025 holiday season. — Indicates an explosive shift in online traffic sources that will force retailers and ad platforms to optimize for AI-generated queries, creating new winners and losers in digital marketing.
Evidence
“Our data shows that AI-powered traffic from LLMs and agentic browsers is rising and requires different approaches to conversion.”
External signals
Supply-chain alpha · 1returns since call
Generative AI traffic (from LLMs and agentic browsers) to US retail sites is up 760% year-to-date in the 2025 holiday season.
Methodology & coverage
Management-only analysis. All 6 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.