Adobe Inc (NASDAQ:ADBE) stock fell 0.73% (As on September 12, 11:18:04 AM UTC-4, Source: Google Finance) after the company reported fiscal third-quarter results that topped analysts’ estimates and raised the FY25 total revenue and EPS targets. Net income rose to $1.77 billion, or $4.18 per share, from $1.68 billion, or $3.76 per share, a year ago. The non-GAAP operating income was $2.77 billion. Cash flows from operations were $2.20 billion. Exiting the quarter, Remaining Performance Obligations (“RPO”) were $20.44 billion, and Current Remaining Performance Obligations (“cRPO”) were 67 percent. The AI-influenced ARR has now surpassed $5 billion, up from over $3.5 billion exiting fiscal year 2024 and the company have already surpassed the full year AI-first ending ARR target. The company has been infusing artificial intelligence across its product portfolio.

Moreover, Digital Media segment revenue was $4.46 billion, which represents 12 percent year-over-year growth, or 11 percent in constant currency. Digital Media Annualized Recurring Revenue (“ARR”) exiting the quarter was $18.59 billion, representing 11.7 percent year-over-year growth. Digital Experience segment revenue was $1.48 billion, representing 9 percent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $1.37 billion, representing 11 percent year-over-year growth as reported and in constant currency. Business Professionals and Consumers Group subscription revenue was $1.65 billion, which represents 15 percent year-over-year growth, or 14 percent in constant currency. Creative and Marketing Professionals Group subscription revenue was $4.12 billion, which represents 11 percent year-over-year growth, or 10 percent in constant currency.

ADBE in the third quarter of FY 25 has reported the adjusted earnings per share of $5.31, beating the analysts’ estimates for the adjusted earnings per share of $5.18, according to LSEG consensus. The company had reported the adjusted revenue growth of 11 percent to $5.99 billion in the third quarter of FY 25, beating the analysts’ estimates for revenue of $5.91 billion.

For the fourth quarter, the company says adjusted earnings per share will be $5.35 to $5.40, topping the average analyst estimate of $5.34. Adobe’s guidance for revenue for the quarter is $6.08 billion to $6.13 billion, while analysts expected $6.08 billion, according to LSEG.

Adobe said it expects annualized revenue in its digital media business to increase 11.3% for the fiscal year, up from a prior forecast of 11% growth. Digital media revenue for the fourth quarter will be $4.53 billion to $4.56 billion, beating the $4.51 billion average estimate, according to StreetAccount.