Adobe forecasts fiscal 2026 revenue and profit above expectations, driven by strong demand for design tools and AI offerings. The company is seeing growth in AI adoption, with monthly active users increasing 35% year over year to over 70 million. Adobe recently acquired Semrush for $1.9 billion to enhance its understanding of online consumer behavior.

Despite rising competition in the industry, Adobe’s products remain popular, especially among students and creatives. The company plans to focus on subscription revenue and year-ending annual recurring revenue from various customer groups. Adobe expects annual revenue between $25.90 billion and $26.10 billion, with adjusted earnings per share of $23.30 to $23.50.

Adobe reported fourth-quarter revenue of $6.19 billion, surpassing estimates of $6.11 billion. The company is making significant strides in embedding generative AI into products like Creative Cloud Pro, Photoshop, and Lightroom. Adobe’s push into the ad market includes acquiring Semrush to enhance brand visibility through online searches and AI bots like ChatGPT and Gemini.

Read more at Yahoo Finance: Adobe sees upbeat annual results on AI, design software strength