Adobe Posts Double‑Digit Revenue and Earnings Growth

Adobe’s dominant, high‑moat position in creative and document software combines well with a large and growing base of recurring subscription revenue. The business operates with very profit margins, providing ample capacity for continued share repurchases and potential strategic investment.

Growth prospects remain attractive, supported by AI‑driven upsell, expansion in Experience Cloud, and ongoing margin leverage. The stock is appealing for investors seeking high‑quality rather than a speculative story.

ADOBE INC. (Nasdaq symbol ADBE; www.adobe.com) makes programs that let computer users create, edit and share documents. The Digital Media segment’s software includes Adobe Photoshop and Adobe InDesign; the Digital Experience segment provides analytics, social marketing, targeting, media optimization, and cross-channel campaign management software, as well as premium video delivery; and the Publishing segment produces software that lets computer users create, edit and share documents in the popular PDF format. It offers software to develop web applications.

Adobe is now spending $1.9 billion to acquire Semrush Holdings (symbol SEMR on Nasdaq).
That firm offers a software platform that aims to help businesses run better search-engine optimization as reliance on artificial intelligence increases.

Semrush went public on the New York Stock Exchange in 2021. It designs and develops software that helps companies with online advertising, social-media research and research campaigns, among other things.
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Adobe’s AI adoption continues to spur results

In the quarter ended February 27, 2026, Adobe’s overall revenue rose 12.0%, to a record $6.40 billion from $5.71 billion a year earlier. Revenue rose due to strong adoption of AI-powered products, significant growth in monthly active users across Acrobat, Express, and Firefly, and expanding enterprise demand for automation solutions.

Earnings per share climbed 19.3%, to $6.06 a share from $5.08. Those gains are largely due to the successful monetization of the Firefly AI ecosystem, which drove a tripling of AI-first annualized recurring revenue.

The acquisition of Semrush should be a good fit for Adobe. That includes its adoption of AI, particularly around search.

Semrush recently unveiled a new tool that helps marketers boost and measure their performance with both SEO and AI engines such as ChatGPT, Gemini and Perplexity.

Some of Semrush’s big customers include TikTok and Amazon.com.

The acquisition of Semrush will let Adobe help marketers better understand how their brands are presented to consumers online—not just through traditional search engines but also new large language models, or LLMs.

Adobe stock has declined over the past couple of years. But despite investor concerns, we think the company can prosper in AI. The company also spends a high 17% of its sales on research to stay ahead of the competition.

Recommendation in Wall Street Stock Forecaster: Adobe Inc. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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