Companies /Technology

Adobe Inc

NASDAQ: ADBE Software - Application
$289.15
â–² $15.68 (+5.73%) today
Markets closed · 4:51pm ET

Q3 2025 Earnings

Reported Sep 11, 2025, 4:06pm ET · SEC source
$5.31
Beat +2.48%
EPS · est. $5.18
$6.0B
Beat +1.34%
Revenue · est. $5.9B
−4.6%
Trailing market
ADBE vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0Sep 11Sep 12report 4:06pm ETearnings−0.1%−6.4%
−6%−3%0Sep 11Sep 12earnings−0.1%−6.4%
ADBE −6.4%S&P 500 −0.1%
−6%−3%0Sep 11Sep 12report 4:06pm ETearnings+0.4%−6.4%
−6%−3%0Sep 11Sep 12earnings+0.4%−6.4%
ADBE −6.4%NASDAQ +0.4%
−4%−2%0+2%Sep 10Sep 19report 4:06pm ETearnings+0.9%+1.2%
−4%−2%0+2%Sep 10Sep 19earnings+0.9%+1.2%
ADBE +1.2%S&P 500 +0.9%
−3%0+3%Sep 10Sep 19report 4:06pm ETearnings+2.7%+1.2%
−3%0+3%Sep 10Sep 19earnings+2.7%+1.2%
ADBE +1.2%NASDAQ +2.7%
−0.34%
Day of report
−0.65%
Next session
+4.73%
One week
−3.84%
30 days

S&P 500 over the same 30 days: +0.73%.

Did ADBE Beat Earnings? Q3 2025 Results

Adobe delivered a strong third quarter for fiscal 2025, posting non-GAAP EPS of $5.31 against a consensus estimate of $5.18 — a 2.48% beat — while revenue of $5.99 billion topped expectations by 1.34% and grew 10.7% year over year. The <a href="https://247wallst.com/investing/2025/12/03/retail-investors-price-in-91-chance-adobe-beats-estimates-on-december-10/">results that many had anticipated</a> were underpinned by a pivotal milestone: AI-influenced annual recurring revenue crossed $5 billion, with AI-first ARR already clearing its $250 million year-end target ahead of schedule — concrete evidence that Adobe's generative AI investments are translating into measurable monetization. The Digital Media segment led the charge, generating $4.46 billion in revenue with Digital Media ARR reaching $18.59 billion, up 11.7% year over year. Looking ahead, Adobe raised its full-year revenue target to a range of $23.65 billion to $23.70 billion and lifted non-GAAP EPS guidance to $20.80–$20.85, while Q4 revenue is expected between $6.08 billion and $6.13 billion — signals that management sees AI-driven momentum carrying firmly into the year's final stretch.

Key Takeaways
  • Strength in subscription revenue across both Digital Media and Digital Experience segments
  • AI product innovation driving ARR growth
  • Strong go-to-market execution
  • Business Professionals and Consumers Group subscription revenue growing 15% YoY
  • RPO surpassed $20 billion, accelerating to 13% YoY growth

“Adobe is the leader in the AI creative applications category with AI-influenced ARR surpassing $5 billion and AI-first ARR already exceeding our $250 million year-end target.”

Adobe CEO, on the earnings call

Forward Guidance & Outlook

Adobe raised its FY25 targets: total revenue of $23.65 billion to $23.70 billion, Digital Media segment revenue of $17.56 billion to $17.59 billion, Digital Media ending ARR growth of 11.3% YoY, Digital Experience segment revenue of $5.84 billion to $5.86 billion, and non-GAAP EPS of $20.80 to $20.85. For Q4 FY25, Adobe targets total revenue of $6.075 billion to $6.125 billion, Digital Media segment revenue of $4.53 billion to $4.56 billion, Digital Experience segment revenue of $1.495 billion to $1.515 billion, and non-GAAP EPS of $5.35 to $5.40. Q4 assumes non-GAAP operating margin of ~45.5%, non-GAAP tax rate of ~18.5%, and diluted share count of ~418 million. Full-year assumes non-GAAP operating margin of ~46%.

ADBE YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$2.0B$4.0B$6.0B$5.4B$6.0BRevenue$4.9B$5.3BGross Profit$2.0B$2.2BOperating Income$1.7B$1.8BNet Income
$0$2.0B$4.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

ADBE Revenue by Segment

Digital Experience Subscriptions$1.4B+11.0%
Digital Media$4.5B+12.0%
Creative & Marketing Professionals Subscriptions$4.1B+11.0%
Business Professionals & Consumers Subscriptions$1.7B+15.0%
Digital Experience$1.5B+9.0%

Figures from SEC filings and company reports. Not investment advice.