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Aug 29
Adobe Q3 2025 Earnings Report
Adobe reported record Q3 revenue and raised its FY25 revenue and EPS targets.
Key Takeaways
Adobe delivered strong Q3 results with record revenue of $5.99 billion and net income of $1.77 billion, driven by growth in both Digital Media and Digital Experience segments. The company exceeded expectations and increased full-year guidance.
Record Q3 revenue of $5.99 billion driven by growth across segments.
GAAP EPS came in at $4.18, with non-GAAP EPS at $5.31.
Digital Media ARR reached $18.59 billion.
RPO surpassed $20 billion, with strong subscription demand.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com Forward Guidance
Adobe raised its full-year FY25 revenue and EPS guidance, citing strong demand and execution across its AI-driven product portfolio.
Positive Outlook
- Raised FY25 revenue target to $23.65–$23.70 billion.
- Raised FY25 GAAP EPS target to $16.53–$16.58.
- Raised FY25 non-GAAP EPS target to $20.80–$20.85.
- Digital Media ARR growth expected to remain strong.
- Subscription revenue continues to outperform across segments.
Challenges Ahead
- Cash and short-term investments declined from previous quarters.
- Ongoing macroeconomic uncertainty could impact customer budgets.
- Slight increase in cost of revenue year-over-year.
- No new geography-specific revenue disclosed.
- Higher stock-based compensation affecting margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income