Adobe's third-quarter performance exceeded expectations, with annualized revenue from AI business surpassing $5 billion

Wallstreetcn
2025.09.11 21:45
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Adobe's third-quarter financial report showed that revenue reached $5.99 billion, a year-on-year increase of 11%, exceeding expectations. The adjusted earnings per share were $5.31, also higher than the expected $5.18. The annualized revenue from AI business surpassed $5 billion, and the digital media business grew by 12% year-on-year. Adobe raised its full-year revenue guidance to $23.65-23.70 billion, with expected revenue for the fourth quarter at $6.08-6.13 billion. After the release of the financial report, the stock price initially rose by 8%, but the final increase settled at 2.77%

Adobe provided a strong quarterly revenue forecast, indicating that the software manufacturer's investments in artificial intelligence capabilities are paying off.

On September 11, Adobe released its financial report, showing third-quarter revenue of $5.99 billion, a year-on-year increase of 11%, exceeding expectations. Adjusted earnings per share were $5.31, also higher than the expected $5.18. Key points from the financial report are as follows:

  • Financial Performance: Third-quarter revenue reached $5.99 billion, a year-on-year increase of 11%, surpassing analysts' expectations of $5.91 billion. Adjusted earnings per share were $5.31, above the expected $5.18. Net profit increased from $1.68 billion in the same period last year to $1.77 billion, and earnings per share rose from $3.76 to $4.18.
  • AI Business Breakthrough: Annual recurring revenue from AI-related products exceeded $5 billion, and ARR for AI-first products has surpassed the year-end target of $250 million.
  • Business Growth: Digital media business grew by 12% year-on-year to $4.46 billion, with ARR reaching $18.6 billion; the full-year digital media ARR growth forecast has been raised to 11.3%.
  • Outlook: The full-year revenue guidance has been raised to $23.65-23.70 billion, with fourth-quarter revenue expectations of $6.08-6.13 billion.

After the earnings report was released, Adobe's stock price initially rose by 8% in after-hours trading, but then the gains significantly retreated to 2.77%. Notably, Adobe's stock price has fallen by 21% this year, significantly underperforming the Nasdaq index's 14% increase.

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