Adobe Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark Murphy - JPMorgan Chase & Co - Analyst : Congratulations on a great finish to the year. Shantanu, down at Adobe MAX, the energy, the enthusiasm was just truly phenomenal. And it felt to us like a breakthrough moment, talking to customers down that there was just quite a bit of interest in Firefly Foundry specifically because the customers can end up with this private AI model and something that will understand their identity and their style. Can you speak to how customers are starting to use Foundry in the early stages? And perhaps just what type of economic potential that might be able to unleash for Adobe?

Question: Matthew Swanson - RBC Capital Markets Inc - Analyst : I had a question kind of as we expand the product portfolio and the go-to-market motion of really mirroring up the Creative Cloud and the Experience Cloud. Could you just talk about maybe the ROI focus on kind of justifying the value creation of these new productivity enhancements, right? We've seen through all your product demos how much more content can be created, but really being able to marry that up to results and really kind of why is it a good thing for the enterprise that they have all these new capabilities. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 10:00PM, ADBE.OQ - Q4 2025 Adobe Inc Earnings Call

Question: Ivan Radojicic - Wolfe Research LLC - Analyst : This is Ivan here on the line for Alex. Maybe one question on going back to Semrush acquisition. Can you maybe talk a little bit about what was the strategic rationale? A little more color on that and maybe how we should think about the series from the deal for next year.

Question: Keith Weiss - Morgan Stanley - Analyst : Congratulations on the solid end of the year. Maybe a kind of longer-term focus question. You guys have been clear that the strategy is proliferation first and then kind of monetization going forward when it comes to a lot of these technologies and a lot of the innovation that you're pushing into the base. And I think some of the metrics that we're seeing in Q4 are getting us a little bit excited that we're starting to see some of that ability. You guys talked about monthly active users up over 15%. So the user base is growing. You talked about 3x growth in the usage of the

Question: Jake Roberge - William Blair Capital Partners - Analyst : Good to see the partnership announcement and integration with ChatGPT. David, as you expand to these new surfaces outside of the Adobe ecosystem, how are you thinking about driving monetization of that usage or converting those users over to your platform?

Question: Michael Turrin - Wells Fargo Securities LLC - Analyst : You mentioned credit consumption up 3x this quarter. I was just hoping to hear a bit more around what you're seeing from an overall consumption perspective, how third-party models are impacting that? And if you're becoming at all more confident in monetizing or forecasting consumption? And then secondarily, from your perspective, are there better or worse scenario for us to be thinking about in terms of which of the larger models win [mile] share in the market for Adobe just given, I think you've seen a lot of differing opinions of that, especially of late?

Question: Keith Bachman - Bank of Montreal - Analyst : David, I'd like to direct this to you, if I could, and just ask you how you're thinking about the components of the construct of growth over the course of FY26? And if I break it into two parts, just wondering if you could comment specifically on seats within the creator and marketing professionals? Not looking for specific numbers, but if seat growth remain steady within that category, it looks like you're filling the top of the funnel across the board. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 10:00PM, ADBE.OQ - Q4 2025 Adobe Inc Earnings Call But really, what I'm asking about is paid seat growth. Would you anticipate that that remains steady in FY26? And then the second part of the question is, in the prepared remarks, digital media more broadly, it was 75% was upsell in price and then the balance was basically price. And what I'm asking -- the spirit of the question is, despite growing competition, do you think pricing is still a lever that you can draw on to support growth in '26 and beyond?