Results exceed estimates on earnings and revenue
Adobe reported better-than-expected results for its fiscal third quarter, pushing its stock higher in extended trading. The software giant posted adjusted earnings per share of $5.31, surpassing the $5.18 analysts had forecast, according to LSEG data. Revenue reached $5.99 billion, also beating expectations of $5.91 billion.
Compared to the same period last year, Adobe’s revenue grew 11% from $5.41 billion. Net income increased to $1.77 billion, or $4.18 per share, from $1.68 billion, or $3.76 per share, a year earlier. The company attributed the growth to continued strength in its digital media and creative software offerings.
Q4 outlook remains positive
Looking ahead, Adobe projects fourth-quarter earnings per share in the range of $5.35 to $5.40, exceeding the $5.34 average estimate. Expected revenue is between $6.08 billion and $6.13 billion, with the midpoint aligning with analyst forecasts.
For its core digital media business, Adobe now anticipates full-year annualized revenue growth of 11.3%, slightly up from its previous forecast of 11%. The company expects Q4 digital media revenue between $4.51 billion and $4.56 billion, topping the $4.51 billion average Wall Street estimate.
Stock performance remains under pressure
Despite the strong quarterly performance, Adobe’s stock has struggled in 2025. As of Thursday’s market close, shares are down 21% year-to-date, significantly underperforming the Nasdaq Composite, which is up 14%. The company faces continued pressure from competition and shifting investor sentiment toward AI and infrastructure-driven tech firms.
Still, the earnings beat and improved guidance may help restore some investor confidence as Adobe continues to expand its suite of creative and digital tools across its subscription model.
