ADOBE INC. SEC 10-Q Report

Adobe Inc., a global leader in digital media and digital marketing solutions, has released its Form 10-Q report for the third quarter of the fiscal year. The report highlights significant growth in both financial and operational metrics, driven by robust demand for its subscription-based services and innovative product offerings.

Financial Highlights

Adobe Inc. reported strong financial performance for the third quarter, showcasing its ability to drive growth and profitability:

• Total Revenue: $5,873 million, an 11% increase compared to the same period last year, primarily driven by subscription revenue growth across its Digital Media and Digital Experience offerings.
• Gross Profit: $5,235 million, reflecting a gross profit margin of 89%, indicative of strong demand and product innovation.
• Operating Income: $2,109 million, a 12% increase from the year-ago period, demonstrating effective cost management and operational efficiency.
• Net Income: $1,691 million, up by 8% compared to the previous year, highlighting improved profitability.
• Basic Net Income Per Share: $3.95, reflecting an increase in net income and efficient share management.
• Diluted Net Income Per Share: $3.94, showing a consistent increase in earnings per share.

Business Highlights

Adobe's operational performance in the third quarter was marked by significant achievements across various segments and regions:

• Digital Media Segment Performance: The Digital Media segment experienced an 11% year-over-year revenue growth, driven by strong demand for Creative Cloud flagship apps and Acrobat across all routes to market and geographies. The segment's Annualized Recurring Revenue (ARR) grew to $18.09 billion, representing a 12.1% increase from the previous year.
• Digital Experience Segment Performance: The Digital Experience segment saw a 10% increase in revenue year-over-year, with subscription revenue growing by 11%. This growth was fueled by the strength in Adobe Experience Platform and related apps, as well as Adobe Experience Manager.
• Geographical Performance: Revenue increased across all geographic regions, with the Americas contributing 60% of total revenue, EMEA 26%, and APAC 14%. The EMEA region experienced the highest growth rate at 13% year-over-year, followed by the Americas and APAC.
• Customer Segments: Revenue from Creative and Marketing Professionals increased by 10%, driven by demand for Creative Cloud flagship apps and Adobe Experience solutions. Business Professionals and Consumers saw a 15% revenue increase, primarily due to the strength of Acrobat.
• New Product Launches: Adobe introduced Acrobat AI Assistant, a generative AI-powered product designed to enhance productivity through interactive document experiences. This product is available as an add-on subscription to Adobe Acrobat Pro and Standard and Adobe Acrobat Reader products.
• Future Outlook: Adobe plans to continue focusing on delivering AI-powered and highly differentiated solutions to meet the needs of its diverse and expanding customer base. The company aims to drive growth through audience-specific product innovation and a tailored go-to-market strategy.

SEC Filing: ADOBE INC. [ ADBE ] - 10-Q - Jun. 25, 2025