ADOBE INC. Quarterly Report for Q3 Ended Aug 29, 2025

Summary

Adobe Inc. reported a solid third quarter for fiscal year 2025, demonstrating continued revenue growth driven by its core subscription business across both Digital Media and Digital Experience segments. Total revenue increased 11% year-over-year to $5.99 billion, with subscription revenue accounting for 97% of the total. The Digital Media segment, a key driver, saw revenue climb 12% to $4.46 billion, supported by strong performance in Creative Cloud and Acrobat offerings. The Digital Experience segment also showed healthy growth, with revenue up 9% to $1.48 billion. Profitability remained robust, with net income rising 5% to $1.77 billion for the quarter. The company highlighted significant improvements in operating cash flow, which increased 34% year-over-year to $6.87 billion for the nine-month period, largely due to the absence of a large one-time expense incurred in the prior year. Adobe also continued its aggressive share repurchase program, returning significant capital to shareholders, while maintaining a strong balance sheet with substantial cash and investments.

Key Highlights

• 1Total revenue for Q3 FY25 grew 11% year-over-year to $5.99 billion, driven by subscription revenue.
• 2Digital Media segment revenue increased 12% to $4.46 billion, with strong contributions from Creative Cloud and Acrobat.
• 3Digital Experience segment revenue grew 9% to $1.48 billion, benefiting from Adobe Experience Platform and related applications.
• 4Net income increased 5% to $1.77 billion for the quarter.
• 5Operating cash flow for the nine months ended August 29, 2025, surged by 34% to $6.87 billion.
• 6The company repurchased approximately $8.81 billion of its common stock during the nine months ended August 29, 2025.
• 7Remaining performance obligations stood at $20.44 billion as of August 29, 2025, indicating strong future revenue visibility.

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