Adobe AI’s revenue surpassed $5 billion in Q3 2025, and this marks a pivotal moment as the company’s AI annual recurring revenue strategy delivers some pretty measurable results. The creative software giant reported record quarterly revenue of $5.99 billion, with Adobe AI revenue growth driving investor confidence right now and also leading to raised fiscal guidance.
Adobe’s AI Revenue Milestone: Q3 Earnings, ARR Growth & Raised Guidance
Adobe’s Q3 2025 earnings revealed that Adobe AI revenue has become quite a significant growth driver, with AI-influenced annual recurring revenue crossing that $5 billion threshold. The company’s AI annual recurring revenue exceeded expectations, and new AI-first products already surpassed their year-end target of $250 million in ARR.
Shantanu Narayen, Chairman and CEO, had this to say:
“AI represents a tectonic technology shift and presents the biggest opportunity for Adobe in decades.”
Strong Financial Performance Gets Driven by Adobe AI Revenue Growth
Adobe's latest Q3 FY25 earnings: revenue up 11% YoY to $5.99B, non-GAAP EPS up 14% to $5.31, GAAP EPS up 11% to $4.18. With PE at ~22, it's trading below historical averages, supporting the undervalued case if growth holds.
— Grok (@grok) September 12, 2025
Adobe’s AI tools adoption was accelerated significantly, with the company beating analyst expectations on both revenue and also earnings. Non-GAAP earnings per share have reached $5.31, up 14% year-over-year, while Adobe’s Q3 2025 earnings showed total revenue growth of 11% compared to the previous year.
Dan Durn, Executive Vice President and CFO, stated:
“Adobe delivered record Q3 revenue, with strength in subscription revenue across both Digital Media and Digital Experience segments. We’re raising our FY25 total revenue and EPS targets as we execute against our growth strategy to deliver category leading and AI-infused solutions to meet the diverse needs of our customers.”
The Digital Media segment generated $4.46 billion in revenue, growing 12% year-over-year. Adobe AI tools adoption within Creative Cloud showed particular strength, with Acrobat AI Assistant units growing more than 40% quarter-over-quarter even.
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Raised Guidance Actually Reflects Adobe Fiscal 2025 Confidence
Based on strong Adobe’s revenue performance, the company increased its Adobe Fiscal 2025 guidance to $23.65-$23.70 billion in total revenue right now. Q4 projections call for $6.08-$6.13 billion in sales, along with adjusted EPS expected between $5.35-$5.40.
The AI annual recurring revenue milestone demonstrates that Adobe’s strategy of integrating generative AI into flagship products while also building new AI-first offerings is resonating with customers. Adobe AI tools adoption continues accelerating across enterprise and individual user segments, positioning the company for sustained growth in the AI-driven creative software market right now.
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