Adobe AI-First ARR Tops $650 Million, Up More Than 150% Year Over Year

Adobe’s AI-first ending annualized recurring revenue topped $650 million after rising more than 150% year over year. Skyworks had completed its Qorvo combination on Oct. 5, before the week of broad technology-stock losses.

The Nasdaq Composite lost 4.5% for the week through Oct. 16, its largest weekly decline since June. The S&P 500 slipped 1.9%, while the Dow Jones Industrial Average advanced 0.7%. At the 4 p.m. ET (2000 UTC) close on Oct. 16, Adobe ended at $245.20, down 2.57%, and Skyworks finished at $79.70, up 0.76%.

Adobe’s fiscal third quarter ended Aug. 28 with revenue of $6.76 billion, a 13% increase from a year earlier. Ending ARR across the company totaled $27.50 billion. Adobe also increased its fiscal 2026 revenue outlook to $26.576 billion to $26.626 billion.

The AI-first ending ARR figure is a measure of recurring revenue, separate from sales in a single quarter. Debate over AI’s effects and costs has also prompted concern about growth stocks, a subject covered in earlier coverage of AI backlash and growth stocks.

Skyworks’ most recently reported quarter ended July 3, before the Qorvo combination closed. Revenue was $935 million; diluted GAAP earnings were 22 cents a share, while adjusted earnings were $1.08 a share.

Skyworks completed the Qorvo combination Oct. 5. Shareholders from the legacy Skyworks business hold about 63% of the combined company, while former Qorvo shareholders own about 37%. Skyworks projects annual cost synergies of $500 million or more, with the goal expected within 24 to 36 months after closing once integration is complete.

The company’s board authorized up to $2 billion in share repurchases, with no minimum number of shares required. Skyworks also said it would stop declaring quarterly dividends.

The companies face separate execution tests: Adobe’s AI-first ARR growth and raised revenue target, and whether Skyworks reaches its synergy goal within the stated post-close window.