Adobe Inc, formerly known as Adobe Systems Incorporated, is a software company from the U.S., based in San Jose, California. It was founded in December 1982 by John Warnock and Charles Geschke. Adobe started by creating PostScript, a language that changed desktop publishing.
Now, Adobe offers a lot of software, such as Photoshop for photo editing, Illustrator for drawing, Acrobat for PDFs, and Creative Cloud for various creative tasks. The company serves people all over the world, from artists and students to small businesses and big companies. The company keeps innovating and helping users create and work together.
Adobe Fiscal Q3 2025
Adobe (ADBE) earned $5.99 billion in revenue for the third quarter of fiscal 2025, which is 11% higher than the same time last year. The company reported adjusted earnings per share of $5.31, with operating profit reaching $2.77 billion and net profit at $2.25 billion. Both earnings per share and revenue came in above market expectations.
Adobe reported that AI-influenced annual recurring revenue (ARR) has surpassed $5 billion, while AI-first ARR has already exceeded its $250 million year-end target.
Highlights:
- Adobe generated $2.20 billion in cash from its operations
- The company had $20.44 billion in future contracted revenue, with 67% expected within a year
- Adobe bought back 8 million shares during the quarter
Digital Media (like Photoshop and Creative Cloud):
- Revenue was $4.46 billion, up 12% year-over-year
- Recurring revenue from subscriptions reached $18.59 billion, up 11.7%
Digital Experience (like marketing and analytics tools):
- Revenue was $1.48 billion, up 9%
- Subscription revenue within this segment was $1.37 billion, up 11%
Guidance
Adobe expects fourth-quarter fiscal 2025 revenue between $6.075 billion and $6.125 billion, with most of it coming from its Digital Media segment.
Earnings per share are projected at $4.27 to $4.32 (GAAP) and $5.35 to $5.40 (non-GAAP).
For the full fiscal year, Adobe forecasts total revenue between $23.65 billion and $23.70 billion, with Digital Media revenue reaching up to $17.59 billion and Digital Experience revenue up to $5.86 billion.
Full-year earnings per share are expected to be $16.53 to $16.58 (GAAP) and $20.80 to $20.85 (non-GAAP).
Board Statements
Shantanu Narayen, Chairman and CEO attributed the company’s strong performance in customer-centric strategy, rapid AI product innovation, and strong go-to-market execution. As a result, Adobe raised its FY25 total revenue and earnings per share (EPS) targets.
Dan Durn, Executive Vice President and CFO of Adobe, highlighted Adobe’s record Q3 revenue, driven by robust subscription growth across both the Digital Media and Digital Experience segments. He emphasized the company’s commitment to delivering category-leading, AI-powered solutions tailored to the evolving needs of its global customer base.
Impact on the Stock Market
Adobe’s Q3 earnings report was strong, beating expectations. The company made $5.99 billion in revenue, 11% more than last year, and posted adjusted earnings of $5.31 per share.
Profits and cash flow were solid, and Adobe raised its full-year forecast. As a result, the stock rose over 3% in pre-market trading, showing investor confidence in its growth and AI strategy.
