Adobe projects up to $26.1 bn in 2026 revenue on surging AI adoption

Adobe projected revenue and profit for fiscal 2026 ahead of Wall Street expectations, as per a report by Reuters signalling sustained demand for its creative software and growing traction for its artificial intelligence products.

The company, best known for Photoshop and its Creative Cloud suite, said its continued investment in generative AI is beginning to deliver results. Adobe has been integrating its Firefly AI engine across flagship tools to help users generate images, videos and design assets directly within its apps.

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Despite intensifying competition fuelled by rapid advances in generative AI, Adobe said adoption of its freemium AI features remains strong. Monthly active users for these offerings have climbed 35% year-on-year to more than 70 million, Chief Financial Officer Dan Durn told Reuters. He added that products such as Creative Cloud Pro, Photoshop and Lightroom are seeing robust momentum as AI features become more deeply embedded.

Adobe is also expanding its presence in the advertising technology space. Last month, the company announced a $1.9 billion acquisition of Semrush, a move aimed at helping marketers track how their brands appear in search results and across AI-powered platforms like ChatGPT and Gemini.

From fiscal 2026, Adobe will adjust its forecasting and reporting structure to emphasise subscription revenue and annual recurring revenue across key customer groups, a shift hinting the growing importance of its subscription-led model.

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For fiscal 2026, Adobe expects revenue between $25.90 billion and $26.10 billion, slightly above analyst projections. Adjusted earnings per share are forecast between $23.30 and $23.50, topping expectations. In its latest quarterly results, the company posted revenue of $6.19 billion, beating estimates of $6.11 billion.

Adobe’s push into AI follows rising competition from newer rivals offering low-cost or free generative design tools. However, the company is betting that deeper AI integration within its longstanding creative suite, combined with strong enterprise demand, will help sustain its lead amid a rapidly shifting market.