Executive Summary
Adobe delivered a solid QQ3 2025 performance, continuing its proven SaaS-led growth trajectory. Revenue of USD 5.988 billion rose 10.7% year over year and 1.96% quarter over quarter, reflecting durable demand for Creative Cloud and Experience Cloud offerings. The company posted a gross profit of USD 5.346 billion and a remarkably high gross margin of 89.28%, supported by ongoing subscription economics and favorable product mix. Operating income reached USD 2.173 billion with an operating margin of 36.29%, while net income was USD 1.772 billion and diluted EPS stood at USD 4.18, up 10.58% year over year in the earnings metric and 5.82% quarter over quarter. EBITDA was USD 2.462 billion, yielding an EBITDA margin around 41.1%, underscoring strong operating leverage within a high-margin software model.
Key Performance Indicators
Key Insights
Revenue: USD 5.988B in QQ3 2025, up 10.72% YoY and 1.96% QoQ. Gross Profit: USD 5.346B; Gross Margin: 89.28% (YoY +10.14%, QoQ +2.12%). Operating Income: USD 2.173B; Operating Margin: 36.29% (YoY +9.09%, QoQ +3.03%). Net Income: USD 1.772B; Net Margin: 29.59% (YoY +5.23%, QoQ +4.79%). EBITDA: USD 2.462B; EBITDA Margin: ~41.12%. EPS (diluted): USD 4.18; EPS YoY: +10.58%; QoQ: +5.82%. R&D: USD 1.089B; SG&A: USD 2.047B; Total Operating Expenses: USD 3.135B. Interest Expense: USD 67M; Tax Ex...
Financial Highlights
Revenue: USD 5.988B in QQ3 2025, up 10.72% YoY and 1.96% QoQ. Gross Profit: USD 5.346B; Gross Margin: 89.28% (YoY +10.14%, QoQ +2.12%). Operating Income: USD 2.173B; Operating Margin: 36.29% (YoY +9.09%, QoQ +3.03%). Net Income: USD 1.772B; Net Margin: 29.59% (YoY +5.23%, QoQ +4.79%). EBITDA: USD 2.462B; EBITDA Margin: ~41.12%. EPS (diluted): USD 4.18; EPS YoY: +10.58%; QoQ: +5.82%. R&D: USD 1.089B; SG&A: USD 2.047B; Total Operating Expenses: USD 3.135B. Interest Expense: USD 67M; Tax Expense: USD 415M; Effective Tax Rate: ~18.96%. Shares outstanding (diluted): ~430M.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.99B |
10.72% |
1.96% |
| Gross Profit |
5.35B |
10.14% |
2.12% |
| Operating Income |
2.17B |
9.09% |
3.03% |
| Net Income |
1.77B |
5.23% |
4.79% |
| EPS |
4.18 |
10.58% |
5.82% |
Management Commentary
Not available in the provided data. Earnings-call transcript content, management quotes, and thematic highlights are not included in the supplied materials. Once transcript data is provided, we will extract management commentary by themes (strategy, operations, market conditions) and pair quotes with context and significance.
Forward Guidance
No explicit forward guidance is included in the provided data. Given the quarterly trajectory, investors should monitor: (1) ARR growth and net retention in Creative Cloud and Experience Cloud, (2) continued margin expansion through operating leverage and disciplined opex, (3) AI-enabled product enhancements and cross-sell dynamics across segments, (4) macro impact on digital marketing and enterprise IT budgets. If revenue growth moderates or if a slower ad market affects Experience Cloud adoption, expect incremental pricing leverage and selective spend optimization to protect margin. Target factors to monitor include ARR trajectory, renewal rates, USD demand in enterprise segments, and any changes in subscription mix that could impact long-term profitability.