Adobe (ADBE) Beats Revenue and EPS Expectations, Raises Full-Year Outlook

by MarketNewsData

Quarter ended August 29, 2025

Key Financials

  • Revenue: $5.99B vs. $5.91B est. → Beat (+11% YoY, +10% CC)
  • EPS (Non-GAAP): $5.31 vs. $5.18 est. → Beat
  • GAAP EPS: $4.18 (up from $3.76 YoY)
  • Net Income (Non-GAAP): $2.25B (vs. $2.08B YoY)
  • Operating Cash Flow: $2.20B
  • RPO: $20.44B (+13% YoY), cRPO at 67%
  • Share Buyback: 8.0M shares repurchased

Segment Performance

  • Digital Media Revenue: $4.46B (+12% YoY; ARR $18.59B, +11.7% YoY)
  • Digital Experience Revenue: $1.48B (+9% YoY)
    • Subscription within Digital Experience: $1.37B (+11% YoY)

Updated Guidance

Q4 FY25 Outlook

  • Revenue: $6.075B–$6.125B
  • Non-GAAP EPS: $5.35–$5.40
  • Digital Media revenue: $4.53B–$4.56B
  • Digital Experience revenue: $1.495B–$1.515B

FY25 Full-Year Outlook

  • Revenue: $23.65B–$23.70B (raised)
  • Non-GAAP EPS: $20.80–$20.85 (raised)
  • Digital Media ARR growth: 11.3% YoY

Operational Highlights

  • AI-influenced ARR surpassed $5B, with AI-first ARR already above the $250M year-end target.
  • Strength across subscription models, especially in Creative Cloud and Experience Cloud.
  • Digital Media continues to drive growth, supported by strong demand from creative professionals and consumers.

Context and Implications

  • Adobe beat both top-line and EPS expectations, marking its strongest subscription-driven quarter to date.
  • RPO growth (+13% YoY) shows durable demand, comparable to SaaS peers like $MSFT and $CRM.
  • AI monetization is scaling faster than expected, creating an additional revenue lever heading into FY26.
  • Guidance raises suggest management sees demand resilience despite macro uncertainty.

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