Adobe’s fourth-quarter revenue grew by 10.5% year over year, hitting USD 6.19 billion, with a non-GAAP operating margin of 45.6%. This exceeded guidance, marking the sixth consecutive quarter of revenue upside. Annual recurring revenue and remaining performance obligations outpaced revenue growth, with ARR up 11.5%, RPO up 12.8%, and total monthly active users rising 15%.

Maintaining a fair value estimate of USD 560 per share for Adobe, analysts see shares as attractively valued. Despite emerging competition and AI seat compression concerns, there is potential for annual margin expansion and solid growth over the next five years. Fiscal 2026 guidance slightly exceeded expectations, but ARR growth may decelerate to 10.2%.

Key metrics for Adobe show positive revenue growth and strong user engagement, with generative credits tripling sequentially. The company’s outlook for 2026 is slightly ahead on revenue but slightly light on profitability. Despite some concerns around competition and growth deceleration, Adobe’s stock price remains supported by long-term assumptions.

Read more at Morningstar: Adobe Earnings: Building on Recent Momentum With Another Good Quarter