For more information on those risks, please review today's earnings release and Adobe's SEC filings. Our reported results include GAAP growth rates and non-GAAP growth rates, including constant currency rates. During this presentation, Adobe's executives will refer to constant currency growth rates unless otherwise stated. Non-GAAP reconciliations are available in our earnings release and on Adobe's Investor Relations website.

Adobe had another strong quarter and delivered double-digit top-line growth and profitability. In Q3, we achieved record revenue of $5.99 billion, representing 10% year-over-year growth. GAAP earnings per share for the quarter was $4.18, and non-GAAP earnings per share was $531, representing 14% year-over-year growth. We're infusing AI into Adobe Experience Manager with our upcoming LLM Optimizer release, a powerful agentic app to improve brand visibility, drive acquisition, and maintain engagement with customers across LLM platforms.

We're seeing steady growth across our family of Acrobat and Express products, with combined monthly active users growing approximately 25% year-over-year. Our AI-influenced ARR has now surpassed $5 billion, up from over $3.5 billion exiting fiscal year 2024, and we've already surpassed our full-year AI-first ending ARR target. Given our customer-focused growth strategy, product innovation, strong go-to-market execution, and the momentum in our business, we're pleased to once again raise our FY25 revenue and EPS targets. In Q3, Digital Media achieved revenue of $4.46 billion, which grew 11% year-over-year.

What went well
  • Adobe achieved record Q3 revenue of $5.99 billion, growing 10% year-over-year in constant currency, with non-GAAP EPS of $5.31 up 14% year-over-year.
  • Digital Media ending ARR reached $18.59 billion, growing 11.7% year-over-year in constant currency, driven by higher-value AI-infused offerings and AI-first products.
  • AI-influenced ARR surpassed $5 billion, up from over $3.5 billion exiting FY2024, and ARR from new AI-first products including Firefly, Acrobat AI Assistant, and GenStudio for Performance Marketing already passed the full-year target of over $250 million a quarter early.
  • The integrated GenStudio solution components exceeded $1 billion in ARR growing over 25% year-over-year, while AEP and apps ending ARR grew greater than 40% year-over-year.
  • Combined Acrobat and Express monthly active users grew approximately 25% year-over-year, and generative AI consumption accelerated with 29 billion generations and video generations up nearly 40% quarter-over-quarter.
What went wrong
  • Digital Experience segment revenue grew only 9% year-over-year, lagging the faster-growing Digital Media segment.
  • Investors raised concerns about advertising platforms like Google and Meta embedding diffusion engines directly, posing a potential risk to single-channel marketer customers, which management said mostly affects small and medium businesses.

Guidance Changes

MetricPeriodCurrent guidance
Total Adobe revenueFY2025$23.65 billion to $23.70 billion (raised on business momentum)
Non-GAAP EPSFY2025$20.80 to $20.85 (raised)
Digital Media ending ARR book of business growthFY202511.3% year-over-year (raised on momentum)
Total Adobe revenueQ4 FY2025$6.075 billion to $6.125 billion (new quarterly guide)
Non-GAAP EPSQ4 FY2025$5.35 to $5.40 (new quarterly guide)

Performance Breakdown

MetricYoYNote
Total revenue +10% constant currency, +11% reported record $5.99 billion on AI-infused and AI-first demand
Non-GAAP EPS +14% $5.31
GAAP EPS +11% $4.18
Digital Media ending ARR +11.7% $18.59 billion on Creative Cloud Pro, Acrobat, Firefly, and AI Assistant demand
Business professionals and consumers subscription revenue +14% constant currency, +15% reported $1.65 billion on Acrobat and Express MAU up approximately 25% and AI Assistant monetization
Creative and marketing professionals subscription revenue +10% constant currency, +11% reported $4.12 billion on CC Pro migration and Firefly adoption
AEP and apps ending ARR +40% enterprise focus on personalization at scale
Digital Experience subscription revenue +11% $1.37 billion, largest software provider in category

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
AI-influenced and AI-first ARRover $3.5 billion AI-influenced exiting FY24AI-influenced ARR surpassed $5 billion and AI-first products passed the over $250 million full-year target a quarter early—
Third-party model choice in Fireflyown Firefly models plus early partnersadded Google Gemini Flash 2.5, Veo, and Imagen alongside OpenAI, Flux, Runway, Pika, and Ideogram, with Nano Banana launched same day as release—
Acrobat evolution to Acrobat StudioAcrobat AI Assistantlaunched Acrobat Studio bringing PDF Spaces and Express together, with early adoption strong—
Agentic web and LLM optimizationtraditional searchLLM traffic to US retail sites grew 4,700% year-over-year in July 2025, driving Adobe LLM Optimizer entering general availability—
GenStudio content supply chainemerging enterprise solutioncomponents exceeded $1 billion ARR up over 25%, with 60% year-over-year growth in cross-cloud one Adobe deals—

Q&A Summary

What part of the Nano Banana demo is the third-party diffusion engine versus Adobe's infrastructure, and what percent of customers face risk from ad platforms adding diffusion engines?
Wadhwani said Adobe differentiates on model choice and workflow integration blending precision tools with generative models; Narayen said the magic is in Adobe applications and larger enterprises want cross-channel campaigns with attribution, while ad platforms are excited to have Adobe make workflows seamless.
Which components are driving the upside on the $250 million AI-first ARR target?
Narayen said strength is broad across Firefly Services, GenStudio, and Acrobat AI Assistant, with AI-influenced ARR exceeding $5 billion, declining to single out one product.
How was the Performance X price line optimization received and how should we think about price times quantity into next year?
Narayen said the creative business showed strength across the board, with healthy Creative Cloud Pro migration, strong Firefly subscription adoption, and Firefly Services, and clarified migration was not the sole reason for strength.
Was this a turning point quarter, and how much is AI-first adoption versus core price times quantity, giving confidence in double-digit DM ARR?
Narayen said the creative opportunity is large and differentiated with execution now translating to monetization; Wadhwani added it was top-to-bottom strength, with over 20% of Firefly growth from new users to Adobe.
As the web shifts to LLM-based discovery, which parts of the portfolio capture that and when does it show in the DX book?
Narayen said AEP and apps, GenStudio, and AEM will see tailwinds as brands strengthen direct consumer relationships, and Adobe is growing significantly faster than peers at its scale.
Is AI a headwind to seats requiring a shift to consumption, and when will AI move the needle on the creative side?
Narayen said AI value is delivered and monetized through software, and Adobe views this as both seat expansion and marketing automation, winning in either case via its unified creative and marketing offering.
Why isn't Adobe seeing margin degradation from AI adoption given rising usage metrics?
Durn cited clear prioritization plus two productivity vectors, efficient GPU training fleet utilization and continually tuned inferencing cost per generation, along with internal AI-driven productivity gains.
How do the newly generally available AEP agents drive value and how does Adobe capture it?
Chakravarthy called it a transformation from SaaS to agentic software, with audience, data insights, and journey agents letting marketers use conversational interfaces to do work that previously required data experts, making campaigns faster and more efficient.

More on Adobe Inc.

Reported 2025-09-11 · figures from the Adobe Inc. Q3 2025 earnings call.

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