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Adobe (ADBE) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Sep 24, 2025
Adobe (ADBE) reported revenue of $6.0B for the third quarter fiscal 2025 (Q3 FY25), +11% from a year earlier and +2% from the quarter before. Operating margin was 36.3%, net earnings $1.8B (29.6% of revenue).
Adobe, Q3 FY25: revenue $6.0B (+11% year over year), operating margin 36.3%, net earnings $1.8B, operating cash flow $2.2B. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $6.0B | +2% | +11% |
| Gross profit | $5.3B | +2% | +10% |
| Operating profit | $2.2B | +3% | +9% |
| Net earnings | $1.8B | +5% | +5% |
| Operating cash flow | $2.2B | +0.3% | +9% |
| Free cash flow | $2.1B | -0.8% | +8% |
What changed
Revenue was $6.0B in Q3 FY25, up 11% year over year and up 2% from the previous quarter. Subscription was the largest line at 97% of revenue. Subscription added $0.61B year over year (up 12%), 105% of the total change. Product declined 17%.
Gross margin was 89.3%, down 0.5 points from a year earlier. Operating profit was $2.2B, a 36.3% margin (down 0.5 points year over year). Of the extra revenue versus a year earlier, 31% reached operating profit, below the 37% margin then. Operating expenses grew 11% against revenue growth of 11%. The fastest-growing cost line was Sales & marketing (+15%). Net earnings were $1.8B, up 5% year over year. The effective tax rate was 19.0%.
Operating cash flow was $2.2B (up 9% year over year), 124% of net earnings. Non-cash charges added back $0.21B of depreciation and amortization and $0.50B of share-based compensation. Working capital and other items used $0.28B. Capital expenditures of $0.07B left free cash flow of $2.1B.
Questions
What was Adobe's revenue in the third quarter fiscal 2025?
Adobe (ADBE) reported revenue of $6.0B for the third quarter fiscal 2025 (Q3 FY25), +11% from a year earlier and +2% from the quarter before.
Was Adobe profitable in the third quarter fiscal 2025?
Operating profit was $2.2B (36.3% of revenue) and net earnings $1.8B.
Source: Adobe 10-Q on SEC EDGAR.