Entrenching generative AI into Adobe’s creative software ecosystem is paying off, according to the company’s latest earnings. While its share price has fallen by more than 37 percent this year at the time of writing, Adobe is reporting a bump in annual profits driven by record revenue of $23.77 billion for 2025 — an 11 percent increase year-over-year that it’s largely attributing to AI.

“Adobe’s record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools,” said Adobe CEO Shantanu Narayen in the press release. The company is now targeting to increase annual recurring revenue (ARR) by 10.2 percent in 2026 by “advancing our innovative generative and agentic platforms and expanding our customer base,” according to Narayen.

Adobe has gone all-in on AI over the last two years, launching its own family of Firefly generative AI models for image, video, and audio applied across its creative apps and marketing solutions. AI-influenced ARR now makes up more than one-third of Adobe’s overall business, according to its earnings report.

According to Narayen, one of Adobe’s top accomplishments this year was “establishing ourselves within leading AI ecosystems with partnerships and integrations across AWS, Azure, Google Gemini, HUMAIN, Microsoft Copilot, OpenAI, and others.” In other words, if Adobe can’t compete with AI rivals head-on, it’s betting on third-party integrations to help it survive generative AI’s relentless conquest of the creative industry.