Dec 10 (Reuters) - Adobe forecast fiscal 2026 revenue and profit above Wall Street expectations on Wednesday, signaling strong demand for the Photoshop maker's design tools and increasing monetization
for its artificial intelligence offerings.
Since the launch of ChatGPT in 2022, Adobe has made heavy bets on generative AI with its Firefly tool, which can be integrated across the company's Creative Cloud suite to create images and videos, in an attempt to draw users in.
While Adobe's products have become a staple for students, creatives and enterprises, the company is grappling with rising competition in the industry it dominates, with AI proliferation allowing rivals to rapidly grow their businesses and win contracts.
This has led to fears of Adobe potentially falling behind smaller firms such as Figma, which has moved aggressively in incorporating AI into its offerings.
In its push into the ad market, last month, Adobe said it would acquire Semrush for $1.9 billion to help marketers better understand how their brands are seen by online consumers through searches on websites and GenAI bots such as ChatGPT and Gemini.
Adobe also said that from fiscal 2026, it would rejig some forecast and reporting segments to focus on subscription revenue from various customer groups as well as year-ending annual recurring revenue.
The company expects annual revenue between $25.90 billion and $26.10 billion, compared with estimates of $25.87 billion, according to data compiled by LSEG.
On an adjusted basis, Adobe expects annual earnings per share of between $23.30 and $23.50, above estimates of $23.34 per share.
It reported fourth-quarter revenue of $6.19 billion, beating estimates of $6.11 billion.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)
