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Adobe Beats Q4, Raises 2026 EPS Outlook as AI Push Extends to ChatGPT and Semrush

A muted share move reflects scrutiny of freemium conversion, margins plus deal integration despite strong AI engagement.

Overview

  • Adobe reported Q4 non-GAAP EPS of $5.50 on revenue of $6.19 billion, topping estimates and rising from $5.61 billion a year earlier.
  • Management guided fiscal 2026 GAAP EPS to $17.90–$18.10, above Wall Street expectations.
  • Adobe rolled out Photoshop, Adobe Express and Acrobat inside ChatGPT, bringing its tools to the platform’s stated 800 million weekly users through conversational prompts.
  • Freemium and AI usage accelerated, with monthly active users surpassing 70 million, first-time Firefly subscriptions doubling quarter over quarter and generative AI credit consumption tripling.
  • Adobe plans to acquire Semrush for about $1.9 billion, targeting a first-half FY2026 close to bolster search and AI-driven discovery capabilities.