"CEO Shantanu Narayen highlighted the role of artificial intelligence within the product range. Adobe's generative AI model Firefly, which powers features such as generative fill in Photoshop, is, according to him, the basis for a new growth path. He emphasized that recurring revenue influenced by AI now exceeds $5 billion and that the target for AI-first revenue has already been exceeded this year."
"CFO Dan Durn said the record figures are mainly due to strong subscription revenues in both Digital Media and Digital Experience. According to him, the results confirm that the strategy of deeply integrating AI into all solutions is working. The Digital Media division saw revenue increase by 12% to $4.46 billion, while annual recurring revenue from this segment reached nearly $18.6 billion. Digital Experience recorded revenue of $1.48 billion, a growth of 9%, with the subscription component increasing by 11%."
Adobe raised its fiscal outlook after reporting strong third-quarter fiscal 2025 results, with revenue of $5.99 billion, up 11% year-over-year (10% at constant currency), and earnings per share of $4.18 GAAP and $5.31 non-GAAP, both beating analysts. CEO Shantanu Narayen identified generative AI Firefly as a new growth foundation and said AI-influenced recurring revenue now exceeds $5 billion with AI-first revenue targets surpassed. CFO Dan Durn attributed the record results to robust subscription revenue across Digital Media and Digital Experience. Digital Media revenue rose 12% to $4.46 billion with nearly $18.6 billion ARR, while Digital Experience grew 9% to $1.48 billion. Adobe is expanding AI agents to automate customer journeys and segmentation and emphasizes practical, directly applicable AI for creative workflows.
Read at Techzine Global
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