Adobe’s strategy of integrating generative AI into its suite of creative tools is proving to be a financial success, as evidenced by the company’s latest earnings report. Despite experiencing a stock price decline of over 37% this year, Adobe reported a record revenue of $23.77 billion for 2025, marking an impressive 11% increase compared to the previous year. The company attributes this growth significantly to its AI advancements.

In a press release, Adobe CEO Shantanu Narayen stated, “Our record performance in FY2025 underscores the vital role we play in the global AI ecosystem, alongside the rapid uptake of our AI-powered tools.” Looking ahead, Adobe aims to boost its annual recurring revenue (ARR) by 10.2% in 2026, with plans to enhance its innovative AI platforms and broaden its customer reach, as outlined by Narayen.

Over the past two years, Adobe has heavily invested in AI, launching its Firefly series of generative AI models that cater to image, video, and audio needs within its creative applications and marketing solutions. According to the earnings report, AI-driven ARR now constitutes more than one-third of Adobe’s total business.

Narayen highlighted one of Adobe’s major achievements this year: establishing strong positions in leading AI ecosystems through partnerships and integrations with platforms like AWS, Azure, Google Gemini, HUMAIN, Microsoft Copilot, OpenAI, and others. This strategy suggests that if direct competition with AI rivals isn’t feasible, Adobe is leveraging third-party integrations to maintain its foothold as generative AI continues to transform the creative industry.