Adobe Inc. (NASDAQ: ADBE) is scheduled to report third-quarter results on September 11 at 4:05 pm ET. Central to the company’s growth strategy is agentic AI—autonomous agents embedded across workflows to enhance productivity, accelerate content generation, and deepen user engagement. This reflects a broader pivot toward scalable, AI-native experiences.
The design software maker’s stock market performance has been unimpressive this year – the shares have dropped about 22% since the beginning of 2025, underperforming the S&P 500 index. Although the current valuation is appealing, investors will be monitoring how effectively the company executes its AI strategy.
When the tech firm reports its third-quarter FY25 results on September 11, after the closing bell, analysts will be expecting earnings of $5.18 per share, on an adjusted basis, and revenues of $5.91 billion. In the comparable quarter of fiscal 2024, the company earned $4.65 per share on revenues of $5.41 billion. Earlier, the Adobe management said it targets Q3 adjusted earnings in the range of $5.15 per share to $5.20 per share and revenues between $5.875 billion and $5.925 billion.
Key Metrics
In the second quarter, Adobe’s adjusted earnings rose to $5.06 per share from $4.48 per share in the year-ago period. Net income was $1.69 billion or $3.94 per share, compared to $1.57 billion or $3.49 per share in Q2 2024. The growth was driven by an 11% increase in Q2 revenues to $5.87 billion. Earnings and revenue once again surpassed analysts’ estimates, continuing a multi-quarter streak of outperformance.
Adobe’s CEO, Shantanu Narayen, said in the Q2 2025 earnings call, “Adobe pioneered creative storytelling through groundbreaking applications like Photoshop and Illustrator, and digital document sharing with the introduction of PDF and Acrobat. Our strategy is to bring productivity and creativity to life for billions of users across a variety of surfaces. Acrobat AI Assistant is redefining how people extract value from digital documents, unlocking new levels of productivity by cutting time to insights through conversational interfaces.”
Outlook
Taking a cue from the positive Q2 outcome, the management raised its full-year revenue target to the range of $23.50 billion to $23.60 billion. Adjusted earnings per share guidance for FY25 has been increased to the range of $20.50 to $20.70. While the company’s AI program is gaining traction, there are concerns that the initiatives have yet to yield the desired results in terms of revenue generation.
Adobe’s stock has seen a modest rebound from August lows, but investor sentiment remains cautious, and momentum has yet to fully recover. On Wednesday, the shares traded slightly higher in the early hours of the session.
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