Adobe raises fiscal guidance on the back of strong design software demand

Software design firm Adobe has raised its fiscal guidance—mainly forecasts for profits and revenue—for 2025 due to strong demand for its products and services. 

The company’s continuous increase in users and subscribers has contributed to growth, prompting the company to revise its estimates upwards, as per an official quarterly report.

Adobe raises revenues and adjusted EPS forecasts

Adobe raised revenue forecasts for 2025 to $23.65-$23.70 billion and annual adjusted earnings per share to $20.80-$20.85. 

“Adobe is the leader in the AI creative applications category with AI-influenced ARR surpassing $5 billion and AI-first ARR already exceeding our $250 million year-end target,” said Adobe CEO Shantanu Narayen. 

“Given our customer strategy, AI product innovation and strong go-to-market execution, we’re pleased to once again raise our FY25 total revenue and EPS targets.”

The company posted revenues of $5.99 billion for Q3 2025, ending August 29, showing 11% year-on-year growth. Of total revenues, two segments contributed the majority of revenue growth. The digital media segment was $4.46 billion, and the digital experience was $1.48 billion. 

Source: Google Finance

At the time of writing, Adobe shares were priced at $350.55, up by 0.11%. U.S. stock markets are still closed, but premarket trading shows shares have traded upwards by 2.84% to 360.50.  

“Definitely (Adobe) looks in a position to raise guidance – the business is no doubt one of the leading adopters of AI tech, and their execution specifically with Firefly (Adobe’s media-related generative AI tool) has been quite impressive – the business has seen very healthy subscription numbers, with management noting record customer usage,” said independent investment analyst Hashmeel Suka.

“Relatively, I think we’re still in the early days of AI adoption and there’s still a fair bit of runway, with industry signs looking quite attractive (special mention to Oracle’s blowout revenue projection announced the other day) so upward revisions by Adobe (specifically FY25 revenue around $23.7 billion and EPS around $20.85) seem more than plausible,” he also said

Regarding the share price, he stated, “Adobe’s share price is visibly under pressure this year (down almost 21% YTD even after the 3% rally overnight). The business is at a forward PE of around 16x, which looks relatively good at these levels.”