Company Reports Record Revenue and RPO Surpasses $20 Billion, Accelerating to 13 Percent Year-Over-Year Growth (Form 8-K)

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

SAN JOSE, Calif. - Sept. 11, 2025 - 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:

Total revenue			$6.075 billion to $6.125 billion
Digital Media segment revenue			$4.53 billion to $4.56 billion
Digital Experience segment revenue			$1.495 billion to $1.515 billion
Digital Experience subscription revenue			$1.395 billion to $1.410 billion
Earnings per share			GAAP: $4.27 to $4.32			Non-GAAP: $5.35 to $5.40

1Targets assume non-GAAP operating margin of ~45.5 percent, non-GAAP tax rate of ~18.5 percent and diluted share count of ~418 million for fourth quarter fiscal year 2025.

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

Total revenue			$23.65 billion to $23.70 billion
Digital Media segment revenue			$17.56 billion to $17.59 billion
Digital Media ending ARR growth			11.3% year over year
Digital Experience segment revenue			$5.84 billion to $5.86 billion
Digital Experience subscription revenue			$5.39 billion to $5.41 billion
Earnings per share			GAAP: $16.53 to $16.58			Non-GAAP: $20.80 to $20.85

2Targets assume non-GAAP operating margin of ~46 percent, non-GAAP tax rate of ~18.5 percent and diluted share count of ~427 million for fiscal year 2025.

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.