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Adobe Shares Rise As Q3 Earnings Beat Estimates, Guidance Raised On AI Growth
Financial Modeling Prepยท 2025-09-12 19:06
Core Insights - Adobe Inc. shares increased by 4% in intraday trading following strong third-quarter results that exceeded Wall Street expectations and an improved full-year outlook, driven by the growing adoption of artificial intelligence features across its platform [1] Financial Performance - Adjusted earnings were reported at $5.31 per share, surpassing the consensus estimate of $5.18 [2] - Revenue rose by 11% year-over-year to a record $5.99 billion, exceeding forecasts of $5.91 billion [2] - AI-influenced annual recurring revenue (ARR) surpassed $5 billion, with AI-first ARR exceeding the year-end target of $250 million [2] Segment Performance - Revenue from the Digital Media segment grew by 12% to $4.46 billion [3] - The Digital Experience segment increased by 9% to $1.48 billion [3] - Remaining Performance Obligations (RPO) rose by 13% year-over-year, exceeding $20 billion for the first time [3] Future Projections - For the fourth quarter, Adobe projected revenue between $6.075 billion and $6.125 billion, with adjusted EPS of $5.35 to $5.40, above expectations of $5.34 [3] - The company raised its full-year revenue outlook to between $23.65 billion and $23.70 billion [3]