Adobe Reports Record Revenue but Faces Investor Concerns Over AI Monetization

The company posted $5.71 billion in quarterly revenue, exceeding expectations, but its AI-driven growth and future guidance left investors cautious.

Adobe's Q1 2025 revenue reached a record $5.71 billion, surpassing analyst estimates, with its Digital Media segment contributing $4.23 billion.
Annual recurring revenue (ARR) from AI offerings was $125 million, a relatively small portion of total revenue, but Adobe aims to double this by year-end.
CEO Shantanu Narayen highlighted Adobe's focus on integrating AI into its products and driving innovation, particularly within its Creative Cloud suite.
Investors expressed concerns over the pace of AI monetization and Adobe's future guidance, which was in line with expectations but below some projections.
Adobe's stock fell over 4% in extended trading as analysts questioned whether the company can maintain competitive momentum in the AI-driven creative economy.