Slide 1: Adobe Q3 FY2025 Earnings Call
Adobe Q3 FY2025 Earnings Call September 11, 2025 Introduction Doug Clark | VP, Head of Investor Relations Adobe
Slide 2: Introduction and Financial Disclaimer
DOUG CLARK Good afternoon and thank you for joining us. With me on the call today are Shantanu Narayen, Adobe’s Chair and CEO, David Wadhwani, President of Digital Media, Anil Chakravarthy, President of Digital Experience, and Dan Durn, Executive Vice President and CFO. On this call, which is being
Slide 3: Q3 FY2025 Results
Q3 FY2025 Results Shantanu Narayen | Chair & CEO SHANTANU NARAYEN Thanks, Doug. Good afternoon, everyone and thank you for joining us. Adobe had another strong quarter and delivered double-digit top-line growth and profitability. In Q3, we achieved record revenue of $5.99 billion, representing 10 per
Slide 4: AI represents a tectonic technology shift
AI represents a tectonic technology shift and presents the biggest opportunity for Adobe in decades. Our strategy to harness AI is focused on infusing it across our category-leading applications to provide more value and delivering innovative new AI-first products. We’ve done a great job executing th
Slide 5: Adobe GenStudio and enterprise creative solutions
professionals see in having AI integrated with power and precision creative tools. Simply put, Adobe is the operating system for creative work. Adobe combines creativity and marketing in the enterprise, offering the most differentiated solution to serve the growing needs of Creative and Marketing Prof
Slide 6: Acrobat Studio and AI-influenced ARR
kind destination for people to get insights faster, create standout content and collaborate more seamlessly. • The new Acrobat Studio includes PDF Spaces, which transforms collections of PDFs, web pages and other files into dynamic knowledge hubs that help people work smarter and faster using AI Assi
Slide 7: Digital Media
DAVID WADHWANI Thanks, Shantanu. Hello, everyone. In Q3, Digital Media achieved revenue of $4.46 billion, which grew 11 percent year over year. We exited the quarter with $18.59 billion of Digital Media ARR, growing ending ARR 11.7 percent year over year. 7
Slide 8: Business Professionals and Consumers customer group
Our Business Professionals and Consumers customer group had another strong quarter. The introduction of Acrobat AI Assistant brought a new conversational interface that enhances the experience of customers consuming PDFs. This unlocks increased comprehension across the trillions of PDFs in the world
Slide 9: Rapid adoption of Adobe Express
We’re seeing rapid adoption of Adobe Express. In the enterprise, Express is helping organizations scale content creation while maintaining brand consistency and quality. A great example is dentsu, which has made Express a core part of its global marketing strategy. Adobe’s platform is being rolled o
Slide 10: Our Creative Business had a strong quarter
Our Creative Business had a strong quarter. Creativity has never been more important, and we continue to lead by delivering the next generation of innovations to empower Creative Professionals and Creators. As demand for content accelerates, our strategy is centered on making creativity more accessi
Slide 11: Firefly third-party models and Firefly Services
third-party models, including Google’s Imagen, Veo and Gemini Flash 2.5, OpenAI’s GPT-image as well as, Flux, Runway, Ideogram, Pika and Ray2, to name a few. This is enabling the Firefly app to be the go-to destination for content generation and editing for both creators using Adobe products for the
Slide 12: Digital Experience
ANIL CHAKRAVARTHY Thanks, David. Hello, everyone. Digital Experience had a strong Q3, achieving revenue of $1.48 billion for the quarter. Subscription revenue in the quarter was $1.37 billion, representing 11 percent year-over-year growth, making us the largest software provider in our category. Our
Slide 13: AI is changing consumer behavior
AI is changing consumer behavior and transforming how businesses engage with consumers. Our most recent Adobe Digital Index data, which is based on online transactions across over 1 trillion visits to U.S. retail sites, shows that LLM traffic grew 4,700 percent year over year in July 2025. The rapid c
Slide 14: Performance Marketing and agentic AEP
for Performance Marketing are accelerating video and display ad campaign creation. Marketers will be able to produce engaging short-form video ads using the commercially safe Firefly Video Model. We released new capabilities for display ad campaigns, including on-brand image generation with Firefly, a
Slide 15: Key global customer wins
• Key global customer wins, including Amgen, Australia Post, Dick’s Sporting Goods, Disney, FedEx, Intuit, Lloyds Bank, Macy’s, MetLife, Microsoft, Morgan Stanley, Qatar Airways and Stagwell. We are excited to showcase our latest innovations, including AI-first apps and AI-infused products, at MAX ne
Slide 16: Q3 FY2025 Performance
DAN DURN Thanks, Anil. Today, I will start by summarizing Adobe’s performance in Q3 fiscal 2025, highlighting growth drivers across our businesses, and I’ll finish with our targets. Q3 FY2025 Performance In Q3, we exceeded our targets and once again delivered double digit top-line and EPS growth. We a
Slide 17: Q3 FY2025 Financial Highlights
Adobe achieved revenue of $5.99 billion, which represents 11 percent year-over-year growth as reported, or 10 percent in constant currency. GAAP diluted earnings per share in Q3 was $4.18 and non- GAAP diluted earnings per share was $5.31, reflecting 11 percent and 14 percent year-over-year growth, r
Slide 18: Digital Media growth drivers
over year in constant currency, driven by strong demand for higher-value AI-infused offerings including Creative Cloud Pro and Acrobat as well as AI-first products including Firefly and Acrobat AI Assistant. Within Digital Media, Q3 growth drivers for Business Professionals and Consumers included: • Mo
Slide 19: Digital Experience
Digital Experience Turning to our Digital Experience segment, in Q3 we achieved revenue of $1.48 billion, which represents 9 percent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $1.37 billion, growing 11 percent year over year as reported an
Slide 20: Customer Group Results and Insights
Customer Group Results and Insights Our growth strategy is focused on serving the diverse needs of our customers across both “Business Professionals and Consumers” and “Creative and Marketing Professionals”. As we previously outlined, our continued success will be driven by orienting our innovations
Slide 21: Enterprise content supply chain and GenStudio
In the enterprise at the intersection of creativity and marketing, Adobe’s integrated and AI- infused solutions are transforming the entire content supply chain to address digital content workflow and planning, creation and production, asset management, delivery and activation, and reporting and insi
Slide 22: Cash Flow and Share Repurchase
Our cash flow from operations in the quarter was a Q3 record of $2.20 billion, and ending cash and short-term investment position exiting Q3 was $5.94 billion. In Q3, we entered into a share repurchase agreement totaling $2.50 billion, and we currently have $8.40 billion remaining of our $25 billion
Slide 23: FY25 Targets
For FY25, we are now targeting: • Total Adobe revenue of $23.65 to $23.70 billion; • Digital Media segment revenue of $17.56 to $17.59 billion; • Digital Media ending ARR book of business growth of 11.3 percent year over year; • Digital Experience segment revenue of $5.84 to $5.86 billion; • Digital
Slide 24: Closing remarks and Q&A
SHANTANU NARAYEN Thanks, Dan. I’m extremely energized by my constant engagement with our world-class product teams and excited about our innovative roadmap to deliver Adobe magic to an ever-increasing number of customers. In my interactions with companies around the world, it’s clear that they’re in
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