By Katherine Hamilton
Adobe expects double-digit annual recurring revenue growth next year as it looks to expand its AI business.
The software company on Wednesday posted a profit of $1.86 billion, or $4.45 a share, in the fourth quarter that ended in November, compared with $1.68 billion, or $3.79 a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were $5.50, ahead of the $5.40 anticipated by analysts, according to FactSet.
Revenue rose 10% to $6.19 billion. Analysts surveyed by FactSet forecast revenue of $6.11 billion.
Annual recurring revenue was $25.20 billion exiting the fiscal year, representing 11.5% growth from the year before. Adobe said it expects annual recurring revenue to increase 10.2% in 2026.
In 2026, the company expects revenue to be $25.90 billion to $26.10 billion with adjusted earnings per share of $23.30 to $23.50. Analysts project $25.89 billion in revenue with adjusted earnings of $23.38 a share, according to FactSet.
In the current first quarter, it expects revenue of $6.25 billion to $6.30 billion with adjusted earnings of $5.85 to $5.90 a share. Wall Street was guiding for $6.23 billion in sales and $5.67 a share in adjusted earnings.
Adobe said earlier on Wednesday it was joining a group of companies that are part of ChatGPT's integrated app ecosystem, meaning users can now ask OpenAI's chatbot to edit and create media using Adobe.
Adobe has worked on improving its messaging around AI this year, as investors have remained skeptical about how much it would be able to monetize its AI efforts. Rather than solely competing head-on with rivals like OpenAI and Google, Adobe is integrating with Gemini and ChatGPT, Stifel analysts said in a note.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
December 10, 2025 16:31 ET (21:31 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.