Adobe's stock gains on earnings, revenue beat
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Adobe's stock gains on earnings, revenue beat

Why This Matters

Adobe shares have dropped this year, badly underperforming the broader market.

September 12, 2025
02:43 AM
2 min read
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In this articleADBE your favorite stocksCREATE FREE ACCOUNTwatch now1:1501:15Adobe s spike on Q3 revenue beatClosing Bell: OvertimeAdobe reported fiscal third-quarter results that topped analysts' estimates.

The design software maker's s rose in ext trading.Here's how the company did in comparison with LSEG consensus:Earnings per : $5.31 adjusted vs. $5.18 expectedRevenue: $5.99 billion vs.

$5.91 billion expectedRevenue in the quarter Aug. 29 increased 11% from $5.41 billion a year earlier, Adobe said in a statement.

Net income rose to $1.77 billion, or $4.18 per , from $1.68 billion, or $3.76 per , a year ago.For the fourth quarter, the company says adjusted earnings per will be $5.35 to $5.40, topping the average analyst estimate of $5.34.

Adobe's guidance for revenue for the quarter is $6.08 billion to $6.13 billion, while analysts expected $6.08 billion, according to LSEG.Adobe said it expects annualized revenue in its digital media to increase 11.3% for the fiscal year, up from a prior forecast of 11% growth.

Digital media revenue for the fourth quarter will be $4.53 billion to $4.56 billion, beating the $4.51 billion average estimate, according to StreetAccount.The company has been infusing artificial intelligence across its duct portfolio."Our AI-influenced ARR has now surpassed $5 billion, up from over $3.5 billion exiting fiscal year 2024 and we have already surpassed our full year AI-first ending ARR target," CEO Shantanu Narayen told analysts on a conference call.As of Thursday's close, Adobe's stock was down 21% this year, badly underperforming peers and the broader Nasdaq, which is up 14%.Don’t miss these insights from CNBC Nobel winner Joseph Stiglitz has a warning for bond investorsAs traditional 60/40 portfolios get riskier, BlackRock says investors should rethink their allocationsGoldman adds Walmart to September 'conviction list.' Here's who else made the cutNvidia retail buyers are getting exhaustedwatch now1:2301:23Adobe Q3 report after the bell: Here's what to watchSquawk on the Street

FinancialBooklet Analysis

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Key Insights

  • Earnings performance can signal broader sector health and future investment opportunities
  • Consumer sector trends provide insights into economic health and discretionary spending patterns

Questions to Consider

  • Could this earnings performance indicate broader sector trends or company-specific factors?
  • What does this consumer sector news reveal about economic health and spending patterns?

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