Citizens JMP Reiterates Market Perform on Adobe (ADBE) Following Q3 Beat

Adobe Inc. (NASDAQ:ADBE) is one of the AI Stocks in the Spotlight for InvestorsOn September 12, Citizens JMP analyst Patrick Walravens reiterated a Market Perform rating on the stock following better-than-expected F3 Q25 results.

Its Digital Media segment demonstrated accelerating revenue growth, while the Digital Experience segment saw a slight decline. The company also reported better-than-expected net new Digital Media ARR, strong RPO, and healthy cash flow.

“We maintain our Market Perform rating on Adobe Systems, Inc. after the company announced generally better-than-expected F3Q25 results, with non-GAAP EPS of $5.31 (consensus $5.18), an 89% gross margin (consensus 90%) and 46.3% operating margin (consensus 45.6%) on revenue of $5.99B (consensus $5.91B), up 11% y/y (10% in cc), flat with 11% last quarter (11% in cc), Digital Media segment revenue growth of 12%, up from 11% last quarter; Digital Experience segment revenue growth of 9%, down from 10% last quarter; better-than-expected net new Digital Media ARR of $5.00M (consensus $4.69M); RPO of $20.44B (consensus $20.00B), up 13% y/y, up from 10% last quarter and up 4% sequentially; and free cash flow of $2.13B (consensus $2.07B).”

Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.

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