❯ Adobe Revenue Rises 13%, but 150% AI ARR Growth Fails to Lift the Fourth-Quarter Outlook

Revenue growthAdobe fiscal third-quarter revenue rose 13% to $6.76 billion, topping the $6.7 billion estimate. The company said annual recurring revenue from AI-first products increased 150%, putting generative AI into a disclosed subscription metric.

Outlook gapReuters reported on September 10 that the growth did not eliminate investors’ concerns. Adobe’s fiscal fourth-quarter revenue forecast came in slightly below analyst estimates. After adding Firefly across its creative applications, the company still needs to show those features can generate incremental subscriptions rather than merely retain existing users.

Commercial testAI’s independent revenue contribution will carry more weight than the number of feature launches. AI-first ARR is growing quickly, but its base and measurement boundary matter. Pricing, net subscriber additions and inference costs will show whether the business is improving with usage.

▪ SIGNALAdobe can now report an AI revenue growth rate; the next hurdle is lifting total revenue expectations rather than replacing old features.