Adobe reported record revenue last quarter due to growth across segments, with shares rising by 2.8%.
Revenue was US$5.99 billion, up 11% year-over-year and besting LSEG estimates of $5.91 billion. Earnings per share were $5.31, rising from $4.65 and above estimates of $5.18.
“Adobe delivered record Q3 revenue, with strength in subscription revenue across both Digital Media and Digital Experience segments,” said Adobe CFO and executive vice president Dan Durn.
“We’re raising our FY25 total revenue and EPS targets as we execute against our growth strategy to deliver category leading and AI-infused solutions to meet the diverse needs of our customers.”
Its Digital Media segment’s revenue grew by 12% to $4.46 billion, with annualised recurring revenue increasing 11.7% to $18.59 billion. Digital Experience segment revenue was up 9% to $1.48 billion, and subscription revenue rose by 11% to $1.37 billion.
Subscription revenue for Business Professionals and Consumers was up $15 to $1.65 billion, while Creative and Marketing Professionals subscription revenue grew 11% to $4.12 billion.
Its artificial intelligence-influenced annual recurring revenue passed $5 billion last quarter, the company said. This is above its full-year target.
Operating income was $2.77 billion, up from $2.52 billion one year ago.
Its full-year guidance includes revenue of $23.65-23.70 billion, with earnings per share of $20.80-20.85. For the year’s fourth quarter, it projects revenue of $6.075-6.125 billion.
Adobe’s (NASDAQ: ADBE) share price has fallen by around 20.5% across 2025 to date. Its stocks had dropped after eight of the previous nine earnings reports.
Shares jumped 2.8% to $361.11 in after-hours trading, following a close at $350.55. Its market capitalisation is $148.70 billion.
