Citizens JMP Reiterates Market Perform on Adobe (ADBE) Following Q3 Beat

Core Insights - Adobe Inc. reported better-than-expected F3 Q25 results, leading to a reaffirmation of the Market Perform rating by Citizens JMP analyst Patrick Walravens [1][2] - The Digital Media segment showed accelerating revenue growth, while the Digital Experience segment experienced a slight decline [1][2] Financial Performance - Non-GAAP EPS was $5.31, surpassing the consensus estimate of $5.18 [2] - Gross margin was reported at 89%, slightly below the consensus of 90% [2] - Operating margin stood at 46.3%, exceeding the consensus of 45.6% [2] - Revenue reached $5.99 billion, up 11% year-over-year, compared to the consensus of $5.91 billion [2] - Digital Media segment revenue grew by 12%, an increase from 11% in the previous quarter [2] - Digital Experience segment revenue growth was 9%, down from 10% last quarter [2] - Net new Digital Media ARR was $5.00 million, above the consensus of $4.69 million [2] - Remaining Performance Obligations (RPO) totaled $20.44 billion, exceeding the consensus of $20.00 billion, and up 13% year-over-year [2] - Free cash flow was reported at $2.13 billion, above the consensus of $2.07 billion [2]