Adobe 2025 Q4 Earnings Net Income Grows 10.3% as Revenue Rises 10.5%

Adobe (ADBE) reported fiscal 2025 Q4 earnings on Dec 10, 2025, with revenue and EPS exceeding expectations. The company guided to FY26 revenue above Wall Street estimates, signaling sustained demand for AI-powered tools.

Revenue

Subscription revenue dominated Adobe’s Q4 performance, contributing $5.99 billion, while product revenue totaled $74 million and services/other segments generated $131 million. Total revenue climbed 10.5% year-over-year to $6.19 billion, driven by robust adoption of AI-driven tools across creative and marketing platforms.

Earnings/Net Income

Adobe’s EPS surged 16.8% to $4.45 in Q4, outpacing the $3.81 reported in 2024. Net income rose 10.3% to $1.86 billion, reflecting strong operational resilience and sustained profitability for over two decades. The company’s ability to maintain profitability amid evolving market dynamics underscores its strategic execution.

Post-Earnings Price Action Review

The strategy of buying Adobe shares 30 days after its earnings release and selling in three years resulted in a -3.43% return, significantly underperforming the benchmark’s 78.87% gain. The negative CAGR of -1.17% highlighted the strategy’s failure to capitalize on broader market trends, despite avoiding further losses with a 0.00% maximum drawdown.

CEO Commentary

CEO Shantanu Narayen emphasized Adobe’s AI-driven innovation, including Firefly models and agentic interfaces, as key growth drivers. The company aims to expand AI partnerships with AWS, Azure, and Google Gemini while leveraging its Semrush acquisition to boost brand visibility.

Guidance

Adobe projected FY26 revenue of $25.9–$26.1 billion, with non-GAAP EPS guidance of $23.30–$23.50. Q1 FY26 revenue is forecast at $6.25–$6.3 billion, supported by a 10.2% year-over-year ARR growth target. The Semrush acquisition is expected to have minimal impact on non-GAAP EPS in Year 1.

Additional News

Adobe announced a partnership with OpenAI to integrate Photoshop, Express, and Acrobat into ChatGPT, enhancing AI-driven creative workflows. The company also unveiled new Firefly Image 5 models with advanced 4-megapixel resolution and expanded agentic capabilities. Additionally, Adobe acquired Semrush to strengthen its marketing analytics offerings, signaling a strategic push into brand visibility and customer engagement.