TLDR
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Adobe tops Q3 with record $5.99B revenue, raises FY25 guidance on AI gains.
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Strong Q3 lifts Adobe stock; AI-driven ARR surpasses $5B milestone.
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Adobe posts double-digit growth across media & experience segments.
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$5.31 EPS, $2.2B cash flow: Adobe proves financial strength in Q3.
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Adobe beats expectations, boosts FY25 outlook on AI-powered momentum.
Adobe Inc. recorded a strong close on September 11, 2025, with shares ending at $350.55, rising 0.11% on the day. However, momentum continued in after-hours trading as shares jumped 3.42% to $362.54.
The surge followed Adobe’s third-quarter earnings report, which highlighted record revenue and higher AI-driven metrics.
Record Revenue and Strong EPS Support Raised FY25 Guidance
Adobe posted third-quarter fiscal 2025 revenue of $5.99 billion, marking an 11% year-over-year increase. The company’s non-GAAP earnings per share reached $5.31, while GAAP EPS came in at $4.18. Operating income totaled $2.77 billion on a non-GAAP basis, while GAAP net income stood at $1.77 billion.
The results exceeded expectations and supported Adobe’s decision to raise its full-year 2025 revenue and EPS targets. Full-year total revenue is now projected between $23.65 billion and $23.70 billion. Non-GAAP EPS guidance was also raised to a range of $20.80 to $20.85, reflecting continued execution.
Cash flow from operations reached $2.20 billion for the quarter, demonstrating solid financial strength. Remaining Performance Obligations (RPO) stood at $20.44 billion, with 67% classified as current RPO. Adobe also repurchased 8 million shares during the quarter, reinforcing confidence in its long-term outlook.
AI-Driven ARR Boosts Digital Media and Experience Segments
Adobe’s AI-first products drove impressive growth in Annualized Recurring Revenue (ARR), surpassing its $250 million year-end goal. AI-influenced ARR crossed $5 billion, positioning Adobe as a top player in creative applications powered by AI. This performance underpinned robust results in both its Digital Media and Digital Experience segments.
The Digital Media segment delivered $4.46 billion in revenue, reflecting 12% growth year-over-year. ARR for this segment reached $18.59 billion, posting 11.7% annual growth. Meanwhile, the Digital Experience segment contributed $1.48 billion, up 9% year-over-year.
Within subscriptions, Digital Experience revenue rose 11% to $1.37 billion, maintaining momentum in enterprise-focused offerings. Adobe expects fourth-quarter revenue for Digital Experience to land between $1.495 billion and $1.515 billion. Digital Media’s Q4 revenue is projected at $4.53 billion to $4.56 billion.
Business Groups Maintain Double-Digit Subscription Revenue Growth
Subscription revenue for Adobe’s Business Professionals and Consumers Group rose to $1.65 billion, growing 15% from the prior year. The Creative and Marketing Professionals Group followed closely, generating $4.12 billion, up 11% year-over-year. These results reinforce the strength of Adobe’s diverse customer base.
Subscription growth was consistent across geographies and supported by strong demand for creative tools. Currency-adjusted figures showed solid results despite global economic uncertainties. Adobe’s strategy focused on innovation, execution, and customer alignment.
