• 9M25 revenue/adj. PATMI met expectations at 74%/71% of our FY25e forecasts. 3Q25 adj. EPS rose by 9% to US$5.06bn on a higher operating leverage.
• For 4Q25e, Adobe expects Adj. EPS of US$5.38 (+12% YoY) on revenue of US$6.1bn (+9% YoY), driven by continued strength in its Digital Media segment, which is projected to grow 10% YoY on the back of rising subscription sales across Creative tools.
• We maintain a BUY recommendation with an unchanged DCF target price of US$560 (WACC 7.3%, g 4%). We raised our FY25e revenue estimate by 0.3% following Adobe’s strong 3Q results and updated guidance offset by higher expense estimates due to increased investment in AI and product development. Higher growth in Digital Media revenue supports an FY25e Adj. EPS upgrade to US$20.83. We believe the upward guidance reflects management’s confidence in steady performance, supported by growing AI traction and higher subscription revenue.

Financial summary In the second quarter of 2025, Meituan reported total revenue of 91.8 billion yuan (RMB, same below), a year-on-year increase of 11.7% and a quarter-on-quarter increase of 6.1%. In terms of profitability, operating profit was 200 million yuan, down 98.0% year-on-year and 97.9% quarter-on-quarter. Adjusted net profit was 1.5 billion yuan, down 89.0% year-onyear and 86.3% quarter-on-quarter. By segment, Core Local Commerce revenue in Q2 2025 was 65.3 billion yuan, up 7.7% year-on-year. Operating profit was 3.7 billion...
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Financial performance In the second quarter of 2025, the company reported total revenue of CNY 184.5 billion, representing a year-on-year increase of 14.5%. In terms of profitability, operating profit reached CNY 60.1 billion, up 18.5% year-on-year, with the operating profit margin rising from 31.5% in the same period last year to 32.6%. Net profit attributable to equity holders of the company was CNY 55.6 billion, reflecting a year-on-year growth of 16.8%. By segment, Value-added Services revenue in 2Q25 saw robust...
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