Financial Data and Key Metrics Changes - Adobe achieved record revenue of $5.99 billion in Q3 FY25, representing a 10% year-over-year growth [4] - GAAP earnings per share for the quarter was $4.18, and non-GAAP earnings per share was $5.31, reflecting 14% year-over-year growth [4][28] - Cash flows from operations reached a record $2.20 billion for Q3 [29] - Remaining performance obligations were $20.44 billion, growing 13% year-over-year [29] Business Line Data and Key Metrics Changes - Digital Media revenue was $4.46 billion, growing 11% year-over-year, with ending ARR of $18.59 billion, up 11.7% year-over-year [11][29] - Digital Experience revenue was $1.48 billion, with subscription revenue of $1.37 billion, representing 11% year-over-year growth [22][29] - AI-influenced ARR surpassed $5 billion, up from over $3.5 billion exiting FY24 [10] Market Data and Key Metrics Changes - Monthly active users of Acrobat and Express grew approximately 25% year-over-year [30] - Over 14,000 organizations added Express in Q3, a 4x increase compared to the previous year [15] - Digital Experience Platform subscription revenue grew over 40% year-over-year [26] Company Strategy and Development Direction - Adobe's strategy focuses on integrating AI across its applications to enhance value and deliver innovative products [4][10] - The company aims to be the operating system for creative work, combining creativity and marketing solutions [6] - Adobe is expanding its offerings with new products like Acrobat Studio and Firefly, targeting both business professionals and consumers [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Adobe's ability to grow digital media ARR at least double digits for the foreseeable future [68] - The company raised its FY25 revenue and EPS targets based on strong momentum and customer adoption of AI-first products [35][36] - Management highlighted the importance of hyper-personalization and immersive experiences in the evolving marketing landscape [23] Other Important Information - Adobe's effective tax rate in Q3 was 19.0% on a GAAP basis and 18.5% on a non-GAAP basis [34] - The company entered into a share repurchase agreement totaling $2.50 billion, with $8.40 billion remaining of its $25 billion authorization [35] Q&A Session Summary Question: Insights on the video demo and Adobe's value proposition - Management emphasized the differentiation in choice and integration of third-party models within Adobe applications, enhancing user workflows [43][44] Question: Concerns about competition from advertising platforms - Management noted that larger companies prefer Adobe for multi-channel campaign management, which mitigates risks from single-channel marketers [47] Question: Strength in AI-first products - Management highlighted strong adoption across various AI-first products, including Firefly and Acrobat AI Assistant, contributing to exceeding the $250 million ARR target [50][51] Question: Mix of AI credit usage between Firefly and third-party models - Management confirmed that the majority of generation continues to be from Firefly, with a nice uptick in third-party model usage for ideation and editing [55][57] Question: Pricing and performance of the Performance X product - Management reported strong adoption of Creative Cloud Pro and Firefly Services, indicating healthy migration and overall strength across the creative business [64][65] Question: Relationship between seats and consumption in Creative Cloud - Management acknowledged the shift towards consumption models but emphasized the continued strength in seat-based revenue, particularly with AI integration [78]

[Music] That's the closing bell on Wall Street and now it's market domination overtime. We're giving you full team coverage of all the moves, get you up to speed on the action from today's trade. Yahoo Finances Jared Blickery and Enz Fay joining us here to break down the moves.Jared, we will start with you on that close. Well, thank you Josh. We have record closes for the Dow, the Nasdaq, and the S&P 500.Let's review the intraday price action after the uh pop near the opening bell. Really didn't do much exc ...

Market Overview - The Dow, Nasdaq, and S&P 500 all achieved record closes, with the Dow up 616 points, Nasdaq increasing by 71 basis points, and S&P 500 showing similar upward trends [1][2] - The S&P 600 index rose over 2%, marking the best day for these indices since mid-August [3] Sector Performance - Energy sector lagged slightly, down 0.01%, while materials led with a 2.06% increase [3] - Consumer discretionary, healthcare, financials, real estate, and communication services sectors all rose more than 1.5% [4] - Notable performances included Tesla up 6%, Apple up nearly 1.5%, and Micron up 7.12% [5] Commodities and Oil Market - Oil prices are under pressure due to oversupply concerns, with the International Energy Agency (IEA) reporting a record oil supply in August and projecting a rise in supply by 2.7 million barrels per day [7][8] - Year-to-date, Brent crude is down about 10% and WTI is down approximately 12% [10] Economic Indicators and Market Sentiment - Despite a hotter-than-expected inflation report, stock markets closed positively, indicating strong momentum [10] - Investment strategist Ross Mayfield noted that the current market environment is supported by structural tailwinds, including AI advancements and anticipated rate cuts [12] - There is a mixed sentiment among investors, with some caution regarding valuation levels, but overall bullishness remains prevalent [16][28] Company-Specific Insights: Adobe - Adobe reported Q3 earnings with EPS of $5.31, beating estimates, and revenue of $5.99 billion, also above expectations [30] - The CEO highlighted that AI-influenced annual recurring revenue (ARR) surpassed $5 billion, indicating strong growth in AI applications [31] - Despite positive results, Adobe's stock has faced challenges, down 40% over the past year, attributed to competition from companies like Canva and Figma [33][40]

Core Insights - Adobe reported record quarterly revenue driven by artificial intelligence, with adjusted earnings per share of $5.31 and revenue of $5.99 billion, an 11% year-over-year increase, exceeding analysts' estimates [1][2] - The company has surpassed its "AI-first" revenue goals for the year, leading to an increased full-year outlook for adjusted earnings and revenue [2] - Despite a challenging year with shares down over 20% in 2025, Wall Street remains optimistic, with a mean price target above $461, indicating a potential premium of over 30% [3] Financial Performance - Adobe's fiscal third-quarter revenue reached a record $5.99 billion, driven by strong AI performance, surpassing previous revenue targets [1] - The updated full-year guidance anticipates adjusted earnings of $20.80 to $20.85 per share and revenue of $23.65 billion to $23.7 billion, an increase from earlier estimates [2] Market Sentiment - Shares of Adobe have faced significant declines, down more than 20% in 2025, amid concerns regarding AI progress and competition [3] - Despite the stock's struggles, analysts maintain a positive outlook, with most ratings being "buy" and a mean price target suggesting substantial upside potential [3][4]

On the other side of things, shares of Adobe moving higher by 4% on the back of earnings and a revenue beat. The company also guiding slightly above estimates. It's been a rough go for Adobe for a couple years now.Hasn't participated in the AIdriven tech rally. Stocks down 20% this year coming into today's print. Now trades at its lowest valuation in more than a decade.Joining me now is Oenheimer senior analyst Brian Schwarz. Has an outperformed rating on the stock. Brian, this is very different from the cl ...

Core Viewpoint - Adobe's stock has increased by 4% following a positive earnings report and revenue beat, although the company has faced challenges in recent years, including a 20% decline in stock value this year and trading at its lowest valuation in over a decade [1]. Group 1: Financial Performance - Adobe's net new digital media annual recurring revenue (ARR) is growing at 5%, while its top line revenue is increasing by 11%, indicating a potential slowdown in future growth [8]. Group 2: Competitive Landscape - Adobe faces significant competition from emerging AI-driven companies like OpenAI and Anthropic, which are enhancing content creation speed and efficiency, thereby commoditizing pricing for content creation tools [3][4]. - The company is also challenged by lower-end competitors such as Canva and higher-end rivals like Figma, which are impacting Adobe's traditional business model that relied on higher spending for advertising campaigns [7]. Group 3: Business Model Challenges - Adobe's headcount-based pricing model is under threat due to AI's productivity gains, which are reducing the need for large teams to create content, weakening Adobe's competitive moat [5]. - The transition to AI is expected to take time, and Adobe may not see significant benefits from AI integration for several years [3][5]. Group 4: Market Position - Despite challenges, Adobe's higher-end market position remains defensible due to enterprise organizations valuing compliance, governance, and a robust partner ecosystem, which allows them to command higher prices [6].

Core Insights - Adobe's stock increased by approximately 6% following the release of its earnings report, indicating positive market reaction [1] - The company reported an adjusted EPS of $5.31, surpassing the expected EPS of $5.34 [1][3] - Revenue for the quarter was reported at $5.99 billion, exceeding the anticipated $5.91 billion [2] Financial Performance - The Q3 Annual Recurring Revenue (ARR) for Adobe's digital media business, which includes Creative Cloud subscriptions, reached $18.59 billion, slightly above the consensus estimate of $18.56 billion [2] - Guidance for Q4 EPS is projected to be between $5.35 and $5.40, compared to the expected $5.34 [3] - Q4 revenue guidance is also above estimates, ranging from $6.08 billion to $6.13 billion [3] Future Outlook - The full-year 2025 ARR guidance is set at $11.3 billion, which is slightly above the previous outlook of $11 billion [3] - A conference call is scheduled for 5 PM, where further insights from CEO Shantun Orion are anticipated [3]

Okay guys, hold tight. Adobe earnings are out and the stock is heading higher by about 6%. Haven't said that in a while.Mackenzie Sagalos with the numbers. Mac, hey John, that 6% bump up coming after a beat across the board. We've got adjusted EPS of $5.31%.518 is what the street had been looking for on revenue coming in at 5.99% billion versus 5.91% billion expected. Uh we've got a Q3 ARR for the digital uh media business. This includes its creative cloud subscriptions that came in at 18.59% billion during ...

Market Performance - U.S. equities experienced a robust rally on September 11, 2025, with all three major indices closing at record highs, driven by optimism over a potential Federal Reserve interest rate cut [1][2] - The S&P 500 rose 0.9% to approximately 6586 points, marking a 17.69% increase year-over-year [2] - The Dow Jones Industrial Average surged 1.3%, closing above 46,000 for the first time, adding over 500 points [2] - The Nasdaq Composite climbed 0.7%, achieving a new record high, influenced by mixed performances among technology stocks [2] Economic Indicators - The Consumer Price Index (CPI) report for August indicated a headline annual inflation of 2.9% and core inflation steady at 3.1%, with a monthly rise of 0.4% in headline CPI [3] - Initial jobless claims reached a near four-year high, signaling a softening labor market, which reinforced expectations for a Federal Reserve rate cut [3] - Treasury yields eased in response to the economic reports, as traders anticipated the Fed's first rate cut of the year [3] Upcoming Events - The Federal Reserve's meeting on September 17, 2025, is highly anticipated, with expectations for the first interest rate cut of the year [4] - Key economic data releases are scheduled, including the Michigan Consumer Sentiment report and Retail Sales, Industrial Production, and Housing Starts [5] Corporate News - Oracle (ORCL) shares fell 3.6% after a previous surge of nearly 36% due to excitement over AI-related contracts [6] - Tesla (TSLA) gained 6%, while Apple (AAPL) rose over 1%, and Microsoft (MSFT) and Alphabet (GOOGL) saw slight increases [7] - Warner Bros. Discovery (WBD) shares soared 29% following news of a potential takeover bid from Paramount Skydance [8] - Synopsys Inc. (SNPS) plummeted 35.8% after missing earnings estimates, while GameStop Corp. (GME) rose 3.3% after beating expectations [10] Earnings Announcements - Adobe Inc. (ADBE) is expected to report earnings with a forecasted EPS of $4.21, a 10.50% increase year-over-year [11] - Other companies reporting include RH and RF Industries, with RF Industries expected to show a significant 200% increase in EPS year-over-year [11]

Adobe Inc. (NASDAQ:ADBE) is one of the AI Stocks In The Spotlight For Investors. On September 9, Oppenheimer analyst Brian Schwartz lowered the price target on the stock to $460.00 (from $500.00) while maintaining an Outperform rating. The rating, issued as part of a fiscal Q3 earnings preview, reflects low expectations into the earnings print considering how its valuation has “a lot of bad news.” Nevertheless, Q3 report may not change investor sentiment and that Adobe is unlikely to offer any product or ...