ADBE Q3 2025 Revenue and EPS Exceed Estimates, FY25 Targets Raised

Adobe (ADBE.US) announced strong financial results for its third quarter of fiscal year 2025, ended August 29, 2025. The company reported record revenue of $5.99 billion, an 11% year-over-year increase, surpassing analyst estimates of $5.91 billion. Non-GAAP diluted earnings per share reached $5.31, exceeding the analyst estimate of $5.17.

Segment Performance Drives Growth

The Digital Media segment contributed significantly to the revenue growth, achieving $4.46 billion in revenue, representing a 12% year-over-year increase. Digital Media Annualized Recurring Revenue (ARR) exited the quarter at $18.59 billion, up 11.7% year-over-year. The Digital Experience segment also showed solid performance with $1.48 billion in revenue, a 9% year-over-year increase, and subscription revenue of $1.37 billion, up 11% year-over-year.

Management Raises Full-Year Targets

Buoyed by the strong third-quarter results, management has raised its financial targets for the full fiscal year 2025. The company now expects total revenue to be between $23.65 billion and $23.70 billion. Non-GAAP diluted earnings per share for fiscal year 2025 are projected to be in the range of $20.80 to $20.85, an increase from previous estimates, reflecting confidence in continued growth and operational efficiency.