Adobe sees a bright future as AI bet pays off
The integration of generative AI into Adobe’s creative software ecosystem is paying off, according to the company’s latest results. While its stock price has fallen more than 37% this year at the time of writing, Adobe is reporting an increase in annual profits thanks to a record $23.77 billion in revenue for 2025, an 11% year-over-year increase that it attributes largely 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,” Shantanu Narayen, Adobe CEO, said in the press release. The company now aims to increase its annual recurring revenue (ARR) by 10.2% in 2026 by “advancing our innovative generative and agent platforms and expanding our customer base,” according to Narayen.
Adobe has gone all-in on AI over the past two years, launching its own family of Firefly generative AI models for image, video and audio applied to its creative applications and marketing solutions. AI-influenced ARR now accounts for more than a third of Adobe’s overall business, according to its earnings report.
According to Narayen, one of Adobe’s key achievements this year has been “establishing itself within the leading AI ecosystems with partnerships and integrations with AWS, Azure, Google Gemini, HUMAN, Microsoft Copilot, OpenAI and others.” In other words, if Adobe can’t compete head-on with its AI rivals, it’s banking on third-party integrations to help it survive generative AI’s relentless takeover of the creative industry.
