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Adobe shares jump 6% as AI-influenced ARR tops $5 billion

Published 11/09/2025, 21:12
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ADBE
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SAN JOSE - Adobe Inc. (NASDAQ:ADBE) shares jumped 6% after the software giant reported better-than-expected third-quarter results and raised its full-year outlook, driven by strong AI adoption across its product portfolio.

The company reported adjusted earnings of $5.31 per share for the third quarter, exceeding analyst estimates of $5.18. Revenue rose 11% YoY to a record $5.99 billion, surpassing the consensus forecast of $5.91 billion. Adobe’s AI-influenced annual recurring revenue (ARR) has now surpassed $5 billion, with AI-first ARR already exceeding the company’s $250 million year-end target.

"Adobe is the leader in the AI creative applications category with AI-influenced ARR surpassing $5 billion and AI-first ARR already exceeding our $250 million year-end target," said Shantanu Narayen, chair and CEO of Adobe. "Given our customer strategy, AI product innovation and strong go-to-market execution, we’re pleased to once again raise our FY25 total revenue and EPS targets."

Digital Media segment revenue grew 12% YoY to $4.46 billion, while Digital Experience segment revenue increased 9% to $1.48 billion. The company’s Remaining Performance Obligations (RPO) surpassed $20 billion for the first time, accelerating to 13% YoY growth.

For the fourth quarter, Adobe expects revenue between $6.075 billion and $6.125 billion, with adjusted earnings of $5.35 to $5.40 per share, above the analyst consensus of $5.34. The company also raised its full-year targets, now expecting total revenue between $23.65 billion and $23.70 billion.

Adobe repurchased approximately 8 million shares during the quarter, continuing its commitment to returning value to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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