Adobe Inc. Reports 11% Revenue Growth in Q3 2025

By Ahmed Jameison • Thursday, September 25 06:02 • Permanent Link

Adobe Inc. has reported its financial performance for the third quarter of fiscal 2025, showcasing strong demand across its Digital Media and Digital Experience offerings. The company's Digital Media segment saw a significant increase in Annualized Recurring Revenue (ARR) to $18.59 billion, representing an 11.7% year-over-year growth. This growth in ARR positively impacted the segment's revenue, which reached $4.46 billion, a 12% increase from the same period in the previous fiscal year.

In the Digital Experience segment, revenue for the third quarter of fiscal 2025 was $1.48 billion, up from $1.35 billion in the third quarter of fiscal 2024, reflecting a 9% year-over-year growth. Subscription revenue within the Digital Experience segment also experienced strong growth, reaching $1.37 billion, up 11% from the third quarter of fiscal 2024.

The company's overall revenue for the quarter was $5.99 billion, a significant 11% increase from the same period in the previous fiscal year. Subscription revenue accounted for 97% of the total revenue, with a 12% year-over-year growth, while product revenue decreased by 17% and services and other revenue decreased by 12% compared to the previous year.

The cost of revenue for the quarter was $642 million, representing a 16% increase from the same period in the previous fiscal year. Operating expenses totaled $3.17 billion, up 11% from the third quarter of fiscal 2024. Despite the increase in expenses, the company reported a net income of $1.77 billion, a 5% increase from the year-ago period.

Notably, the company's cash flows from operations for the nine months ended August 29, 2025, increased significantly to $6.87 billion, up 34% from the same period in the previous fiscal year.

Adobe Inc. reported remaining performance obligations of $20.44 billion as of August 29, 2025, reflecting a 13% increase from the same period in the previous fiscal year.

The financial report also highlighted the company's customer-focused strategy, emphasizing the importance of delivering valuable new features and technologies to customers through product innovation and go-to-market strategies.

Following these announcements, the company's shares moved -2.89%, and are now trading at a price of $351.32. For the full picture, make sure to review ADOBE INC.'s 10-Q report.

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