Company Reports Record Revenue and RPO Surpasses $20 Billion, Accelerating to 13 Percent Year-Over-Year Growth

SAN JOSE, Calif.--(BUSINESS WIRE)-- Adobe (Nasdaq: ADBE) today reported financial results for its third quarter fiscal year 2025 ended Aug. 29, 2025.

“Adobe is the leader in the AI creative applications category with AI-influenced ARR surpassing $5 billion and AI-first ARR already exceeding our $250 million year-end target,” said Shantanu Narayen, chair and CEO, Adobe. “Given our customer strategy, AI product innovation and strong go-to-market execution, we’re pleased to once again raise our FY25 total revenue and EPS targets.”

“Adobe delivered record Q3 revenue, with strength in subscription revenue across both Digital Media and Digital Experience segments,” said Dan Durn, executive vice president and CFO, Adobe. “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.”

Third Quarter Fiscal Year 2025 Financial Highlights

• Adobe achieved record revenue of $5.99 billion in its third quarter of fiscal year 2025, which represents 11 percent year-over-year growth, or 10 percent in constant currency. Diluted earnings per share was $4.18 on a GAAP basis and $5.31 on a non-GAAP basis.
• GAAP operating income in the third quarter was $2.17 billion and non-GAAP operating income was $2.77 billion. GAAP net income was $1.77 billion and non-GAAP net income was $2.25 billion.
• Cash flows from operations were $2.20 billion.
• Exiting the quarter, Remaining Performance Obligations (“RPO”) were $20.44 billion, and Current Remaining Performance Obligations (“cRPO”) were 67 percent.
• Adobe repurchased approximately 8.0 million shares during the quarter.

Third Quarter Fiscal Year 2025 Business Segment Highlights

• Digital Media segment revenue was $4.46 billion, which represents 12 percent year-over-year growth, or 11 percent in constant currency. Digital Media Annualized Recurring Revenue (“ARR”) exiting the quarter was $18.59 billion, representing 11.7 percent year-over-year growth.
• Digital Experience segment revenue was $1.48 billion, representing 9 percent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $1.37 billion, representing 11 percent year-over-year growth as reported and in constant currency.

Customer Group Supplemental Disclosure

• Business Professionals and Consumers Group subscription revenue was $1.65 billion, which represents 15 percent year-over-year growth, or 14 percent in constant currency.
• Creative and Marketing Professionals Group subscription revenue was $4.12 billion, which represents 11 percent year-over-year growth, or 10 percent in constant currency.

Financial Targets

The following table summarizes Adobe’s fourth quarter fiscal year 2025 targets, which assumes current macroeconomic conditions1:

The following updated table summarizes Adobe’s fiscal year 2025 targets, which assumes current macroeconomic conditions2:

Adobe to Host Conference Call

Adobe will webcast its third quarter fiscal year 2025 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website: http://www.adobe.com/ADBE. Earnings documents, including Adobe management’s prepared conference call remarks with slides and an investor datasheet are posted to Adobe’s Investor Relations Website in advance of the conference call for reference.

Forward-Looking Statements, Non-GAAP and Other Disclosures

In addition to historical information, this press release contains “forward-looking statements” within the meaning of applicable securities laws, including statements related to our business, strategy, artificial intelligence (“AI”) and innovation momentum; our market and AI opportunity and future growth; market and AI trends; current macroeconomic conditions; fluctuations in foreign currency exchange rates; strategic investments; customer success and groups; and our financial targets and assumptions related thereto, including revenue, operating margin, operating efficiencies, annualized recurring revenue, tax rate, earnings per share and share count. Each of the forward-looking statements we make in this press release involves risks, uncertainties and assumptions based on information available to us as of the date of this press release. Such risks and uncertainties, many of which relate to matters beyond our control, could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: failure to innovate effectively and meet customer needs; issues relating to development and use of AI; failure to compete effectively; damage to our reputation or brands; failure to realize the anticipated benefits of investments or acquisitions; service interruptions or failures in information technology systems by us or third parties; security incidents; failure to effectively develop, manage and maintain critical third-party business relationships; risks associated with being a multinational corporation and adverse macroeconomic conditions; complex sales cycles; failure to recruit and retain key personnel; litigation, regulatory inquiries and intellectual property infringement claims; changes in, and compliance with, global laws and regulations, including those related to information security and privacy; failure to protect our intellectual property; changes in tax regulations; complex government procurement processes; risks related to fluctuations in or the timing of revenue recognition from our subscription offerings; fluctuations in foreign currency exchange rates; impairment charges; our existing and future debt obligations; catastrophic events; and fluctuations in our stock price. Further information on these and other factors are discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and Adobe's most recently filed Quarterly Reports on Form 10-Q. The risks described in this press release and in Adobe’s filings with the U.S. Securities and Exchange Commission should be carefully reviewed.

Undue reliance should not be placed on forward-looking financial information set forth in this press release, which reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for our fiscal quarter ended Aug. 29, 2025, which Adobe expects to file in Sept. 2025. Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.

A reconciliation between GAAP and non-GAAP earnings results and financial targets and a statement regarding use of non-GAAP financial information are provided at the end of this press release and on Adobe’s investor relations website. Definitions of our non-GAAP financial measures are provided in the Current Report on Form 8-K relating to this press release.

About Adobe

Adobe is changing the world through personalized digital experiences. For more information, visit www.adobe.com.

©2025 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in the United States and/or other countries. All other trademarks are the property of their respective owners.

Non-GAAP Results

The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release.

The following table shows Adobe’s third quarter fiscal year 2025 GAAP tax rate reconciled to the non-GAAP tax rate included in this release.

Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions

The following tables show Adobe's fourth quarter fiscal year 2025 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.

Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions (continued)

The following tables show Adobe's updated annual fiscal year 2025 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.

Use of Non-GAAP Financial Information

Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate Adobe’s operating results and future prospects in the same manner as management.

Adobe's management believes it is useful for itself and investors to review, as applicable, both GAAP information as well as non-GAAP measures, which may exclude items such as stock-based and deferred compensation expenses, amortization of intangibles, investment gains and losses, income tax adjustments and other items that are not considered part of Adobe’s ongoing operations, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Adobe uses these non-GAAP measures in order to assess the performance of Adobe's business and for planning and forecasting in subsequent periods. Whenever such a non-GAAP measure is used, Adobe provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250911368178/en/

Investor Relations Contact

Doug Clark

Adobe

[email protected]

Public Relations Contact

Ashley Levine

Adobe

[email protected]

Source: Adobe