Adobe Inc. Reports Strong Revenue Growth

By Greg Peters • Friday, January 16 09:28 • Permanent Link

Adobe Inc. has reported its fiscal year 2025 results, showcasing strong performance across its Digital Media and Digital Experience segments. The company's Digital Media products, including Creative Cloud flagship applications like Adobe Photoshop and Illustrator, saw an 11% year-over-year growth in revenue, reaching $17.65 billion in fiscal 2025, up from $15.86 billion in fiscal 2024. This growth was driven by an 11.5% increase in Annualized Recurring Revenue (ARR) to $19.20 billion, indicating sustained demand for Adobe's creative solutions.

In the Digital Experience segment, Adobe reported a 9% year-over-year growth in revenue, reaching $5.86 billion in fiscal 2025, up from $5.37 billion in fiscal 2024. Subscription revenue within this segment also grew to $5.41 billion in fiscal 2025, up from $4.86 billion in fiscal 2024, representing an 11% year-over-year increase.

The company's Total Adobe ARR, a key performance metric used to assess the annual value of subscription contracts in both customer groups, grew to $25.20 billion, representing an 11.5% year-over-year increase. Adobe's success in driving growth in ARR has positively impacted its overall revenue growth.

In terms of financial performance, Adobe reported net income of $7.13 billion during fiscal 2025, marking a 28% increase compared to fiscal 2024. Cash flows from operations also saw a significant uptick, reaching $10.03 billion during fiscal 2025, up by 25% compared to fiscal 2024.

Furthermore, the company's remaining performance obligations stood at $22.52 billion as of November 28, 2025, marking a 13% increase from the previous year.

Adobe's subscription revenue, which accounts for the majority of its total revenue, reached $22.90 billion in fiscal 2025, up from $20.52 billion in fiscal 2024, representing a 12% year-over-year growth. This indicates the continued preference for the company's subscription and hosted service offerings.

The market has reacted to these announcements by moving the company's shares 0.23% to a price of $353.80. Check out the company's full 10-K submission here.

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