Adobe’s AI growth takes center stage after guidance raise
By Dana Sullivan Kilroy
Published on March 28, 2026.
Adobe's (ADBE) AI story is taking center stage after the company announced its first report of AI-first ARR, which is generating real revenue. Despite a 37% drop in the stock this year, Adobe's AI story now appears to be gaining traction. The company's Digital Media segment generates over $17 billion in ARR and AI is contributing less than 1% of this total. However, the company's core business continues to thrive, with segment revenue growth of 12% and net new ARR of $432 million. Management also highlighted solid retention, upsell, and paid conversion trends across Creative Cloud and Document Cloud, suggesting the installed base remains resilient even as competition increases. Adobe increased its full-year outlook for FY2026 revenue of $26.1 billion to $25.9 billion and non-GAAP EPS of $23.30 to-$23.50.
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