| Imagery Source: Wikimedia Commons / Coolcaesar |
| Information Source: Nasdaq |
| Company Reports Record Revenue and RPO Surpasses $20 Billion, Accelerating to 13 Per cent Year-Over-Year Growth. |
| 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 per cent year-over-year growth, or 10 per cent in constant currency. Diluted earnings per share $4.18 on a GAAP basis and $5.31 on a non-GAAP basis.
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- 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.
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- Cash flows from operations were $2.20 billion.
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- Exiting the quarter, Remaining Performance Obligations (“RPO”) were $20.44 billion, and Current Remaining Performance Obligations (“cRPO”) were 67 per cent.
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- Adobe repurchased approximately 8.0 million shares during the quarter.
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| Third Quarter Fiscal Year 2025 Business Segment Highlights |
- Digital Media segment revenue was $4.46 billion, which represents 12 per cent year-over-year growth, or 11 per cent in constant currency. Digital Media Annualised Recurring Revenue (“ARR”) exiting the quarter was $18.59 billion, representing 11.7 per cent year-over-year growth.
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- Digital Experience segment revenue was $1.48 billion, representing 9 per cent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $1.37 billion, representing 11 per cent year-over-year growth as reported and in constant currency.
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| Customer Group Supplemental Disclosure |
- Business Professionals and Consumers Group subscription revenue was $1.65 billion, which represents 15 per cent year-over-year growth, or 14 per cent in constant currency.
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- Creative and Marketing Professionals Group subscription revenue was $4.12 billion, which represents 11 per cent year-over-year growth, or 10 per cent in constant currency.
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| For the full document, click the link below |
| Adobe |
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