Adobe Shatters Records with Fiscal 2025 Performance

Adobe has closed its fiscal year 2025 with historic momentum, reporting record-breaking revenue figures that underscore the company's successful pivot into an AI-first future. For the full fiscal year, Adobe achieved a record revenue of US$23.77 billion (AU$35.65 billion), representing an 11% year-over-year growth. The fourth quarter alone delivered US$6.19 billion in revenue – a 10% increase from the previous year—surpassing analyst expectations.

The company’s growth engine continues to be its Digital Media segment, which houses the flagship Creative Cloud and Document Cloud products. In the fourth quarter, this segment generated US$4.62 billion in revenue, an 11% increase year-over-year. A critical metric for investors, Annualised Recurring Revenue (ARR) for Digital Media, exited the quarter at a staggering US$19.20 billion, growing 11.5%. This expansion highlights the enduring demand for Adobe’s creative tools, even as the market shifts toward new generative technologies.

Profitability and shareholder returns remained a central theme of the fiscal report. Adobe demonstrated disciplined cost management and strong operating leverage, delivering a record US$3.16 billion in operating cash flow for the fourth quarter alone. For the full fiscal year, operating cash flows surpassed the $10 billion mark. The company also returned significant capital to shareholders, repurchasing approximately 7.2 million shares during the quarter and a total of nearly 30.8 million shares over the fiscal year, reinforcing its commitment to driving shareholder value.

Strategic innovation in artificial intelligence served as the backbone of Adobe's 2025 narrative. Management highlighted that "AI-influenced" ARR now accounts for over one-third of the overall business, validating their heavy investment in the Firefly generative AI models and new agentic interfaces. The rapid adoption of AI-enhanced features across Photoshop, Lightroom, Illustrator, and Acrobat was cited as a primary driver for customer acquisition and retention. CEO Shantanu Narayen emphasised that the results reflect Adobe's growing importance in the global AI ecosystem, specifically noting the success of their commercially safe Firefly models in attracting enterprise clients.

Looking ahead, Adobe remains bullish on its trajectory for 2026. The company has issued guidance targeting continued double-digit growth in Annualised Recurring Revenue (ARR), specifically projecting a total Adobe ending ARR growth of approximately 10.2%. Revenue guidance for fiscal 2026 is set between US$25.90 billion and US$26.10 billion. With a clear focus on expanding its customer base and advancing its generative platforms, Adobe is positioning itself not just as a software provider, but as a foundational pillar of the generative AI economy.

You can read the official Adobe report here.