Adobe's AI, Freemium Products Key to Annual Recurring Revenue Growth, RBC Says

11:01 AM EDT, 09/11/2026 (MT Newswires) -- Adobe's (ADBE) AI-first approach and freemium products are showing traction, with investors focusing on signs of total annual recurring revenue re-acceleration, RBC Capital Markets said in a Friday note. Creative freemium monthly active users have crossed 100 million, growing over 70% year-over-year, while AI first annual recurring revenue, or ARR, grew 150% year-over-year to $650 million, the firm said. RBC said ARR across the Firefly app and credit packs grew 40% sequentially, while Adobe's Experience Manager and agentic web apps delivered over 20% year-over-year ARR growth. The firm said freemium growth and delayed price increases have created a near term ARR headwind, while positive monetization trends are emerging among converted users. Adobe raised its fiscal 2026 revenue and EPS guidance while maintaining total ARR growth guidance at 10.2%, the firm said. RBC maintained its outperform rating on Adobe and $315 price target. Price: 250.24, Change: +1.41, Percent Change: +0.57