Adobe Reports Record Revenue in Q2 and Raises FY25 Revenue and EPS Targets

SAN JOSE, Calif.--(BUSINESS WIRE)--Adobe (Nasdaq:ADBE) today reported financial results for its second quarter fiscal year 2025 ended May 30, 2025.

“Our strategy to deliver ground-breaking innovation for Business Professionals and Consumers, and Creative and Marketing Professionals is delighting customers and we are pleased to raise Adobe’s FY25 revenue target,” said Shantanu Narayen, chair and CEO, Adobe. “Adobe’s AI innovation is transforming industries enabling individuals and enterprises to achieve unprecedented levels of creativity.”

“As a result of us driving strong performance in the first half of the year, we are pleased to raise Adobe’s FY25 total revenue and EPS targets,” said Dan Durn, executive vice president and CFO, Adobe. “We continue to invest in AI innovation across our customer groups to enhance value realization and expand the universe of customers we serve.”

Second Quarter Fiscal Year 2025 Financial Highlights

• Adobe achieved record revenue of $5.87 billion in its second quarter of fiscal year 2025, which represents 11 percent year-over-year growth as reported and in constant currency. Diluted earnings per share was $3.94 on a GAAP basis and $5.06 on a non-GAAP basis.

• GAAP operating income in the second quarter was $2.11 billion and non-GAAP operating income was $2.67 billion. GAAP net income was $1.69 billion and non-GAAP net income was $2.17 billion.

• Cash flows from operations were $2.19 billion.

• Exiting the quarter, Remaining Performance Obligations (“RPO”) were $19.69 billion, and Current Remaining Performance Obligations (“cRPO”) were 67 percent.

• Adobe repurchased approximately 8.6 million shares during the quarter.

Second Quarter Fiscal Year 2025 Business Segment Highlights

• Digital Media segment revenue was $4.35 billion, which represents 11 percent year-over-year growth, or 12 percent in constant currency. Digital Media Annualized Recurring Revenue (“ARR”) exiting the quarter was $18.09 billion, representing 12.1 percent year-over-year growth.

• Digital Experience segment revenue was $1.46 billion, representing 10 percent year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $1.33 billion, representing 11 percent year-over-year growth as reported and in constant currency.

Customer Group Supplemental Disclosure

• Business Professionals and Consumers Group subscription revenue was $1.60 billion, which represents 15 percent year-over-year growth as reported and in constant currency.

• Creative and Marketing Professionals Group subscription revenue was $4.02 billion, which represents 10 percent year-over-year growth, or 11 percent in constant currency.

Financial Targets

The following table summarizes Adobe’s third quarter fiscal year 2025 targets, which assumes current macroeconomic conditions¹:

The following updated table summarizes Adobe’s fiscal year 2025 targets, which assumes current macroeconomic conditions²:

Adobe will webcast its second quarter fiscal year 2025 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website: http://www.adobe.com/ADBE. Earnings documents, including Adobe management’s prepared conference call remarks with slides and an investor datasheet, are posted to Adobe’s Investor Relations Website in advance of the conference call for reference.

Forward-Looking Statements, Non-GAAP and Other Disclosures

In addition to historical information, this press release contains “forward-looking statements” within the meaning of applicable securities laws, including statements related to our business, strategy, artificial intelligence (“AI”) and innovation momentum; our market and AI opportunity and future growth; market and AI trends; current macroeconomic conditions; fluctuations in foreign currency exchange rates; strategic investments; customer success and groups; revenue; operating margin; operating efficiencies; annualized recurring revenue; tax rate; earnings per share; and share count. Each of the forward-looking statements we make in this press release involves risks, uncertainties, and assumptions based on information available to us as of the date of this press release. Such risks and uncertainties could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: failure to innovate effectively and meet customer needs; issues relating to the development and use of AI; failure to compete effectively; damage to our reputation or brands; failure to realize the anticipated benefits of investments or acquisitions; service interruptions or failures in information technology systems by us or third parties; security incidents; failure to effectively develop, manage and maintain critical third-party business relationships; risks associated with being a multinational corporation and adverse macroeconomic conditions; complex sales cycles; failure to recruit and retain key personnel; litigation, regulatory inquiries and intellectual property infringement claims; changes in, and compliance with, global laws and regulations, including those related to information security and privacy; failure to protect our intellectual property; changes in tax regulations; complex government procurement processes; risks related to fluctuations in or the timing of revenue recognition from our subscription offerings; fluctuations in foreign currency exchange rates; impairment charges; our existing and future debt obligations; catastrophic events; and fluctuations in our stock price. Further information on these and other factors are discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and Adobe's most recently filed Quarterly Reports on Form 10-Q. The risks described in this press release should be carefully reviewed.

Undue reliance should not be placed on the financial information set forth in this press release, which reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for our fiscal quarter ended May 30, 2025, which Adobe expects to file in June 2025. Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.

A reconciliation between GAAP and non-GAAP earnings results and financial targets and a statement regarding the use of non-GAAP financial information are provided at the end of this press release and on Adobe’s investor relations website.

About Adobe

Adobe is changing the world through personalized digital experiences. For more information, visit www.adobe.com.

©2025 Adobe. All rights reserved. Adobe, Creative Cloud, Document Cloud and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in the United States and/or other countries. All other trademarks are the property of their respective owners.