Adobe beats Q3 expectations with record revenue and strong AI adoption, while announcing a CEO transition and raising full-year profit targets.
Adobe posted record Q3 revenue, raised full-year guidance, and showed strong AI ARR growth, indicating bullish momentum.
Adobe reported record third-quarter revenue of $6.76 billion, marking a 13% year-over-year increase. The company raised its full-year guidance as AI-driven ARR topped $650 million, signaling strong momentum for its generative tools despite a pending leadership transition to CEO Anil S. Chakravarthy.
Growth is primarily driven by strong adoption of AI tools like Firefly and Acrobat AI Assistant, which are converting users from a massive freemium base of over 1 billion monthly active users.