Adobe Reports Record Revenue in Q2 2025

By Philip Seaworth • Friday, June 13 06:35 • Permanent Link

Adobe (NASDAQ:ADBE) has reported record revenue in its second quarter fiscal year 2025, with a total revenue of $5.87 billion, showing an 11 percent year-over-year growth. The company's GAAP operating income for the quarter was $2.11 billion, while non-GAAP operating income was $2.67 billion. GAAP net income was $1.69 billion, and non-GAAP net income was $2.17 billion.

Adobe's cash flows from operations were $2.19 billion, and the company repurchased approximately 8.6 million shares during the quarter.

In terms of business segment highlights, the digital media segment revenue was $4.35 billion, representing an 11 percent year-over-year growth. The digital media annualized recurring revenue (ARR) exiting the quarter was $18.09 billion, showing a 12.1 percent year-over-year growth.

The digital experience segment revenue was $1.46 billion, indicating a 10 percent year-over-year growth. The digital experience subscription revenue was $1.33 billion, reflecting an 11 percent year-over-year growth.

In the customer group supplemental disclosure, the business professionals and consumers group subscription revenue was $1.60 billion, showing a 15 percent year-over-year growth. The creative and marketing professionals group subscription revenue was $4.02 billion, representing a 10 percent year-over-year growth.

Looking ahead, Adobe has raised its fiscal year 2025 total revenue target to $23.50 billion to $23.60 billion, with a GAAP earnings per share (EPS) range of $16.30 to $16.50 and a non-GAAP EPS range of $20.50 to $20.70. These targets assume a non-GAAP operating margin of approximately 46 percent, a non-GAAP tax rate of around 18.5 percent, and a diluted share count of approximately 428 million for fiscal year 2025.

Adobe's strong performance in the second quarter has led to an increase in its fiscal year 2025 revenue and EPS targets, as the company continues to invest in AI innovation across its customer groups to enhance value realization and expand its customer base. Today the company's shares have moved -0.77% to a price of $412.84. Check out the company's full 8-K submission here.

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