Adobe Reports $5.99B Q3 Revenue, Raises Outlook on AI Growth

Adobe Inc. reported strong third-quarter earnings for fiscal 2025, surpassing Wall Street expectations with revenue of $5.99 billion, an 11% year-over-year increase, and adjusted earnings per share of $5.31. The company highlighted its leadership in AI-driven creative applications, with AI-influenced annual recurring revenue exceeding $5 billion, and AI-first ARR surpassing its $250 million year-end target. Adobe raised its full-year revenue and earnings guidance, projecting total revenue between $23.65 billion and $23.7 billion and adjusted EPS growth, reflecting confidence in its AI strategy and customer adoption. Despite a year-to-date stock decline, Adobe's shares rose between 3% to 7% in after-hours trading following the earnings release. The company emphasized strong adoption of its AI innovations by nearly 90% of its top enterprise clients, many of whom have increased their spending significantly since fiscal 2023. Overall, Adobe's robust financial health, operational efficiency, and AI product innovation position it well against competitors amid ongoing market concerns about AI's impact on traditional software providers.