Adobe Issues Strong Annual Outlook on AI Momentum

Core Insights - Adobe has issued an annual revenue and profit forecast that exceeds expectations, indicating potential growth as the company focuses on monetizing AI-enhanced creative tools [1] Financial Performance - Adobe projected full-year revenue between $25.90 billion and $26.10 billion, slightly above the estimates of $25.87 billion [3] - Adjusted earnings are forecasted at $23.30 to $23.50 per share, surpassing the midpoint of analyst expectations at $23.34 [3] - Fourth-quarter revenue rose 10% year-over-year to $6.19 billion, exceeding forecasts of $6.11 billion [4] - Adjusted earnings for the fourth quarter increased to $5.50 per share [4] - Digital media revenue grew 11% to $4.62 billion, while digital experience revenue advanced 9% to $1.52 billion [4] - Customer subscription revenue increased 12% to $5.96 billion, driven by a 15% gain in the business professionals and consumer segment [4] User Engagement - Monthly active users of Adobe's freemium offerings climbed 35% year-over-year to over 70 million [2] Competitive Landscape - There is intensifying competition for enterprise contracts, partly due to widespread AI adoption, raising concerns about potential pricing pressure [2]