Adobe on Thursday raised its fiscal 2025 revenue and profit forecasts, reflecting strong demand for its design software suite and growing monetization of its artificial intelligence offerings. The San Jose-based software giant saw its shares climb roughly 3% in extended trading following the announcement.
Adobe’s portfolio—including widely used programs such as Photoshop, InDesign, Acrobat, and Illustrator—remains a staple for enterprises, students, and creative professionals, enabling them to edit images, create graphics, design brochures, and build websites. According to CFO Dan Durn, the primary driver of Adobe’s growth continues to be the influx of new users and subscribers joining the Adobe ecosystem.
To capitalize on the artificial intelligence boom, Adobe has launched Firefly, an AI-powered tool that allows creators to generate videos and images from text prompts and seamlessly integrate them into their designs. While Firefly represents a strategic investment in AI, Adobe faces pressures common across the software industry: investors are closely watching for tangible returns on its technology spending, and smaller competitors, such as Figma, are actively seeking to capture market share.
Despite the positive guidance, Adobe shares have fallen more than 21% year-to-date, reflecting cautious investor sentiment. Analysts at Jefferies noted that they do not anticipate significant acceleration in Firefly adoption in the near term, highlighting ongoing skepticism around AI-driven growth.
For fiscal 2025, Adobe now expects revenue between $23.65 billion and $23.70 billion, up from its prior forecast of $23.50 billion to $23.60 billion. Adjusted earnings per share are projected at $20.80 to $20.85, compared with the previous estimate of $20.50 to $20.70.
Looking at the fourth quarter, Adobe expects revenue between $6.08 billion and $6.13 billion, in line with analyst expectations of $6.08 billion, while adjusted EPS is projected at $5.35 to $5.40, slightly above the consensus of $5.34 per share. The company reported $5.99 billion in revenue for the quarter ended August 29, surpassing estimates of $5.91 billion and reinforcing the strength of its design software business.
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