Adobe hails double-digit earnings and revenue growth in fourth quarter

Adobe Inc on Wednesday reported stronger fourth quarter results, led by double-digit growth in Digital Media revenue.

Shares in the San Jose, California-based creative software developer were up 0.7% in extended trade on Wednesday in New York. They had earlier closed down 0.4% at USD343.13.

Adobe said net income rose 11% to USD1.86 billion in the fourth quarter ended November 28, from USD1.68 billion a year prior. Diluted earnings per share was USD4.45 compared to USD3.79.

Revenue jumped 10% to USD6.19 billion from USD5.61 billion. This was led by Digital Media, up 11% on-year. Digital Experience revenue climbed 9%.

Annualized recurring revenue at November 28 was USD25.20 billion, up 12% from a year ago.

Chair and Chief Executive Officer Shantanu Narayen said the results "reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools."

Chief Financial Officer Dan Durn added: "Adobe delivered another outstanding year, fueled by strong global demand for our AI solutions across Business Professionals & Consumers and Creative & Marketing Professionals customer groups."

Exiting the quarter, Remaining Performance Obligations were USD22.52 billion compared to USD19.96 billion a year ago. Current Remaining Performance Obligations stood at 65%.

For the first quarter on 2026, Adobe expects revenue of USD6.25 billion to USD6.30 billion, alongside EPS of USD4.55 to USD4.60 and adjusted EPS of USD5.85 to USD5.90.

In the first quarter of 2025, Adobe reported revenue of USD5.71 billion in the EPS of USD4.14 on a GAAP basis and adjusted EPS of USD5.08.

It again expects double-digit ARR growth in 2026.