“While the transaction is pending, at a minimum we expect to maintain share repurchases sufficient to offset the dilution of equity issuances to Adobe employees.”

In context

“we extend Figma’s reach to our customers and through our global go-to-market footprint; two, Figma accelerates the delivery of new Adobe offerings on the web to the next generation of users; and three, we jointly introduce new offerings to market as we unlock the possibilities of collaborative creativity. Clearly the explosive revenue growth of Figma combined with their efficient operating model would result in an expanding standalone operating margin. Figma’s innovative technology platform will accelerate our R&D roadmap including the delivery of our Creative Cloud technologies on the web, which will allow Adobe to focus and manage our future R&D investments. We will quickly pay down any term loan, if necessary, after close and then resume stock repurchases to reduce Adobe’s share count. While the transaction is pending, at a minimum we expect to maintain share repurchases sufficient to offset the dilution of equity issuances to Adobe employees. We will now provide Q4 targets, which factor in the overall macroeconomic environment; FX headwinds, as the U.S. dollar has continued to strengthen against foreign currencies; and typical year-end seasonal strength in demand for our offerings. As a result, for Q4 we are targeting; total Adobe revenue of approximately $4.52 billion; net new Digital Media ARR of approximately $550 million; Digital Media segment revenue growth of approximately 10% year-over-year or 14% in constant currency; Digital Experience segment revenue growth of approximately 13% year-over-year or 15% in constant currency; Digital Experience subscription revenue growth of approximately 13% year-over-year or 15% in constant currency; tax rate of approximately 23% on a GAAP basis and 17.5% on a non-GAAP basis; and GAAP e”