Adobe Q3 Beat and Raised Guidance — Is AI-Driven ARR the New Growth Engine for ADBE?
Adobe delivered a clean fiscal Q3 beat on revenue and EPS, raised Q4 guidance, and highlighted accelerating AI influence on its subscription base. Revenue grew 11% year over year to $5.99 billion versus $5.91 billion expected, and adjusted EPS of $5.31 topped the $5.18 consensus. Management also lifted its full-year Digital Media annualized revenue growth outlook to 11.3% from 11.0% and disclosed that AI-influenced ARR has surpassed $5 billion—already ahead of the company’s full-year AI-first ending ARR target. Despite improved execution, the stock has lagged year to date. With shares recently around $348 and well below the 52-week high, investors are asking whether AI-influenced ARR can become a durable multi-quarter growth engine rather than a one-off catalyst.