Adobe (ADBE) Q3 2025 Earnings
How Did ADBE Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +0.73%.
Did ADBE Beat Earnings? Q3 2025 Results
Yes. Adobe reported Q3 2025 earnings of $5.31 a share on Sep 11, 2025, beating the $5.18 consensus estimate by 2.5%. Revenue was $6.0B against a $5.9B estimate.
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.
- 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
What Was Adobe's Outlook in Q3 2025?
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
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $6.0B | $5.4B | +10.7% |
| Gross Profit | $5.3B | $4.9B | +10.1% |
| Operating Income | $2.2B | $2.0B | +9.1% |
| Net Income | $1.8B | $1.7B | +5.2% |
ADBE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.