Adobe shares rise after beating earnings and revenue estimates
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The news: Adobe shares rose about 5% in extended trading after the software maker reported fiscal third-quarter results that topped analysts’ estimates and issued a revenue outlook that also came in above expectations.
The numbers: Adjusted earnings per share for the fiscal third quarter were USD 5.31 ($7.97), compared to the USD 5.18 expected, and revenue was 11% higher than a year earlier at USD 5.99 billion. That was also the USD 5.91 billion forecast by LSEG consensus.
Net income rose to USD 1.77 billion, from USD 1.68 billion a year ago. For the fourth quarter, Adobe said earnings per share will be USD 5.35 to USD 5.40 and revenue will be USD 6.08 billion to USD 6.13 billion, slightly above analyst estimates.
Adobe said it expects annualised revenue in its digital media business to increase 11.3% for the fiscal year, slightly higher than its prior forecast of 11% growth. Fourth-quarter digital media revenue is expected to be $4.56 billion to $4.51 billion, higher than expected by analysts
The context: Adobe’s improved guidance comes amid efforts to integrate generative AI into its core products like Photoshop. Despite the stronger results, investor concerns persist over Adobe’s ability to monetise its AI investments. Shares have dropped 21% in 2025, underperforming tech peers and the Nasdaq, which is up 14%.
