ADOBE INC. (ADBE) Earnings History

ADOBE INC. - Q4 FY2025 Earnings

Filed at: Dec 10, 2025, 4:05 PM EST|Read from source

EXECUTIVE SUMMARY

Adobe reported record Q4 and FY2025 results, driven by strong demand for its AI-driven tools and platforms, with a confident outlook for double-digit ARR growth in FY2026.

POSITIVE HIGHLIGHTS

  • •

    Record Q4 FY2025 revenue of $6.19 billion, up 10% year-over-year.

    positive
  • •

    FY2025 revenue reached $23.77 billion, an 11% year-over-year increase.

    positive
  • •

    Digital Media segment revenue grew 11% year-over-year to $4.62 billion in Q4 FY2025.

    positive
  • •

    Digital Experience segment revenue grew 9% year-over-year to $1.52 billion in Q4 FY2025.

    positive
  • •

    Business Professionals & Consumers subscription revenue grew 15% year-over-year in Q4 FY2025.

    positive
  • •

    Creative & Marketing Professionals subscription revenue grew 11% year-over-year in Q4 FY2025.

    positive
  • •

    Record operating cash flows of over $10 billion generated in FY2025.

    positive
  • •

    Targeting over 10% ARR growth in FY2026.

    positive

CONCERNS & RISKS

  • •

    While overall revenue grew, the 'Product' revenue declined year-over-year in Q4 FY2025.

    attention
  • •

    Services and other revenue also saw a year-over-year decline in Q4 FY2025.

    attention
  • •

    GAAP operating income growth was 15.5% YoY for Q4, while non-GAAP operating income grew 8.7% YoY for Q4, indicating a significant difference in reported vs. adjusted growth.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$6.19B
+10.1%
Prior year: $5.61B
Annual (YTD)
$23.77B
N/A
Prior year: $21.50B
Net Income
Quarterly
$1.86B
+10.3%
Prior year: $1.68B
Annual (YTD)
$7.13B
N/A
Prior year: $5.56B
EPS (Diluted)
Quarterly
$4.45
+17.4%
Prior year: $3.79
Annual (YTD)
$16.70
N/A
Prior year: $12.36
Operating Income
Quarterly
$2.26B
+15.5%
Prior year: $1.96B
Annual (YTD)
$8.71B
N/A
Prior year: $6.74B
EPS (Basic)
Quarterly
$4.45
+16.5%
Prior year: $3.81
Annual (YTD)
$16.73
N/A
Prior year: $12.43

MARGIN ANALYSIS

Gross Margin
Current Quarter
89.5%
Prior Year
89.0%
YoY Change
+51 bps
Operating Margin
Current Quarter
36.5%
Prior Year
34.9%
YoY Change
+159 bps
Net Margin
Current Quarter
30.0%
Prior Year
30.0%
YoY Change
-3 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Digital Media
75.2%
$4620000.0B
(+11.0% YoY)
Digital Experience
24.8%
$1520000.0B
(+9.0% YoY)
CC: +8.0%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
Digital Media
$4620000.0B—+11.0%75.2%+11.0%
Digital Experience
$1520000.0B—+9.0%24.8%+8.0%
Total Revenue$6140000.0B——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT GUIDANCE

FY 2026

total_revenue
$25900000.0B—$26100000.0B
Mid-point: $26000000.0B
business_professionals_consumers_subscription_revenue
$7350000.0B—$7400000.0B
Mid-point: $7375000.0B
creative_marketing_professionals_subscription_revenue
$17750000.0B—$17900000.0B
Mid-point: $17825000.0B
total_adobe_ending_arr_growth
10.2
"over 10% year over year"
eps_diluted_gaap
$17.90—$18.10
Mid-point: $18.00
eps_diluted_non_gaap
$23.30—$23.50
Mid-point: $23.40

Q1 FY2026

total_revenue
$6250000.0B—$6300000.0B
Mid-point: $6275000.0B
business_professionals_consumers_subscription_revenue
$1740000.0B—$1760000.0B
Mid-point: $1750000.0B
creative_marketing_professionals_subscription_revenue
$4300000.0B—$4330000.0B
Mid-point: $4315000.0B
eps_diluted_gaap
$4.55—$4.60
Mid-point: $4.57
eps_diluted_non_gaap
$5.85—$5.90
Mid-point: $5.88

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

MANAGEMENT COMMENTARY

Adobe's record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools.

— ADOBE INC., Q4 FY2025 2025 Earnings Call

By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026.

— ADOBE INC., Q4 FY2025 2025 Earnings Call

Adobe delivered another outstanding year, fueled by strong global demand for our AI solutions across Business Professionals & Consumers and Creative & Marketing Professionals customer groups.

— ADOBE INC., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Digital Media Ending Arr
19200.0M
+11.5% YoY
ARR
Total Adobe Ending Arr
25200.0M
+11.5% YoY
ARR

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.