Adobe

Software - Application • Technology • San Jose, CA, United States • ADBE (NMS)

408 536 6000 345 Park Avenue, San Jose, CA 95110-2704, United States

Quarter: Q3 2025 Reported: September 11, 2025 Sentiment: Neutral

Adobe Inc. operates as a technology company worldwide. Its Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content; Document Cloud, a cloud-based document services platform; and Creative Cloud, a subscription service that allows subscribers to use its creative products and applications (apps) integrated with cloud-delivered services across various surfaces and platforms. This segment serves photographers, video editors, graphic and experience designers, game developers, content creators, students, marketers, knowledge workers, and consumers. The company's Digital Experience segment provides an integrated platform; and products, services, and solutions that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. Its Publishing and Advertising segment offers e-learning, technical document publishing, web conferencing, document and forms platform, web application development, high-end printing, and Adobe Advertising solutions. It provides consulting, training, customer management, technical support, and learning services. The company offers its solutions to enterprise customers, and businesses and consumers; and licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added resellers, and original equipment and hardware manufacturers. The company has a strategic alliance with HUMAIN for the development of generative AI models and AI-powered applications. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

Analysis Summary

Adobe's Q3 2025 earnings announcement, as detailed in this 8-K filing, primarily served to explain the company's approach to financial reporting, particularly concerning its non-GAAP measures. The document confirms the release of Q3 2025 financial results on September 11, 2025, via a separate press release (Exhibit 99.1), but the specific financial performance figures (revenue, net income, EPS, and guidance) are not provided within this text.

**Strategic Initiatives and Business Segment Analysis:** The filing does not detail strategic initiatives or segment performance, focusing instead on financial reporting principles.

**Management Commentary and Forward Guidance:** No direct management commentary or forward guidance is present in this excerpt. The emphasis is on the utility of non-GAAP metrics for internal decision-making and external analysis. Adobe states these measures help in budgeting, investment in R&D, infrastructure, and go-to-market strategies.

**Competitive Positioning and Market Trends:** The document does not offer insights into competitive positioning or market trends. It mentions that non-GAAP measures facilitate comparisons to peer companies' operating results.

**Risk Factors and Concerns Raised:** A significant portion of the filing is dedicated to explaining the limitations of non-GAAP measures. Adobe explicitly states that these measures 'are not in accordance with, or an alternative for, generally accepted accounting principles' and 'do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP.' It also notes that these measures 'may be different from non-GAAP measures used by other companies' and 'are not based on any comprehensive set of accounting rules or principles.'

**Key Metrics and Year-over-Year Comparisons:** No specific key metrics or year-over-year comparisons are provided in this filing, beyond the general mention of using constant currency growth rates to assess underlying business performance excluding foreign currency fluctuations and fiscal year impacts.

Key Highlights

• Adobe announced its Q3 fiscal year 2025 financial results on September 11, 2025.
• The company emphasizes the use of non-GAAP financial measures for reporting operational performance.
• Non-GAAP measures exclude stock-based compensation, deferred compensation expenses, and amortization of intangibles.
• Adobe believes non-GAAP metrics provide meaningful supplemental information and greater transparency.
• These non-GAAP measures are used for internal operating decisions, budgeting, and facilitating comparisons.
• The filing explicitly states non-GAAP measures have limitations and are not GAAP alternatives.

Financial Metrics

eps

revenue

guidance

net income

Stock Performance (90 Days)

Data through Dec 30, 2025

Positive Signals

• Commitment to providing 'meaningful supplemental information' through non-GAAP metrics.
• Emphasis on 'greater transparency' for investors and analysts.
• Use of non-GAAP measures to 'assess the core profitability' of business operations.
• Facilitation of internal comparisons to historical operating results and peer company comparisons.
• Strategic use of non-GAAP data for budgeting and investment decisions (e.g., R&D, infrastructure).

Risks & Concerns

— Non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles (GAAP).
— Non-GAAP measures do not reflect all amounts associated with results of operations as determined in accordance with GAAP.
— Non-GAAP measures may be different from non-GAAP measures used by other companies, potentially hindering comparability.
— Non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
— Exclusion of ongoing and recurring expenses like stock-based compensation from non-GAAP results could obscure full operational costs.