Adobe Posts Record Q3 Revenue of $6.76 Billion, AI-First ARR Tops $650 Million

EarningsM&A · PartnershipManagement Impact 4
โดย Insider Monkey·US·Read original
Summary · why it matters

Adobe reported record third-quarter revenue of $6.76 billion, up 13% year over year, and raised its full-year revenue and profit targets. Non-GAAP EPS climbed 15% to $6.13, while GAAP EPS rose 11% to $4.62, and AI-first ending ARR topped $650 million, growing more than 150% year over year, though that remains a small slice of the company's total ARR base of $27.50 billion. The company also announced that Anil S. Chakravarthy will take over as CEO from Shantanu Narayen on December 1, and it struck a deal to acquire Topaz Labs, whose AI enhancement models for image and video would slot into Firefly and Creative Cloud, subject to regulatory approval. Operating cash flow hit a third-quarter record of $2.52 billion, and Adobe bought back roughly 9.5 million shares, leaving $24.55 billion authorized for repurchases, while management raised its full-year revenue target to a range of $26.58 billion to $26.63 billion and its non-GAAP EPS target to $24.45 to $24.50. Remaining performance obligations grew 8% year over year to $22.16 billion, trailing both the 13% revenue growth and the 11.2% growth in total ending ARR, and Interim CFO Steven Day flagged a foreign-exchange headwind heading into the fourth quarter.

Impact on stocks 2

Artificial Intelligence▲ · 1 stocks
Adobe Systems Incorporated
ADBE
▲ PositiveCapitalTechnologyrelevance

Adobe posted record Q3 revenue of $6.76B, raised full-year revenue and EPS targets, and bought back ~9.5M shares.

Others▲ · 1 stocks

Theme Impact 1

Off-coverage companies 2

Topaz LabsPrivate▲ Positive
Capitalrelevance

Adobe struck a deal to acquire Topaz Labs, whose AI enhancement models would slot into Firefly and Creative Cloud, subject to regulatory approval.

FireFly Metals LtdPrivate± Mixed
relevance

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