Adobe Inc. (ADBE) Financial Results Summary
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Adobe (ADBE) Q4 2025 Financial Results Summary
Adobe reported its financial results for the fourth quarter and fiscal year 2025 on December 10, 2025.
Fourth Quarter FY2025 Financial Highlights
- Revenue: Achieved record revenue of $6.19 billion, representing a 10% increase year-over-year (YoY), and 10% growth in constant currency.
- Earnings per Share:
- GAAP: $4.45, an increase of 16.8%
- Non-GAAP: $5.50, an increase of 14.4%
- Operating Income:
- GAAP: $2.26 billion, up 15.5%
- Non-GAAP: $2.82 billion, up 8.4%
- Net Income:
- GAAP: $1.86 billion, an increase of 10.3%
- Non-GAAP: $2.29 billion, up 7.20%
- Cash Flows from Operations: Reached $3.16 billion, indicating strong operational cash flow.
- Remaining Performance Obligations: Ended the quarter with $22.52 billion in Remaining Performance Obligations (RPO) and Current Remaining Performance Obligations (cRPO) at 65%.
Share Repurchase
- Adobe repurchased approximately 7.2 million shares during the quarter.
Fourth Quarter FY2025 Business Segment Highlights
- Digital Media Segment Revenue: Recorded $4.62 billion, marking 11% growth YoY, maintained in constant currency.
- Digital Experience Segment Revenue: Achieved $1.52 billion, representing a 9% YoY increase, or 8% in constant currency. Subscription revenue reached $1.41 billion, indicating a 11% YoY improvement.
Fourth Quarter FY2025 Customer Group Highlights
- Total Customer Group Subscription Revenue: Amounted to $5.96 billion, reflecting a 12% increase YoY, or 11% in constant currency.
- Business Professionals & Consumers Subscription Revenue: Registered at $1.72 billion, signifying a 15% YoY growth, or 14% in constant currency.
- Creative & Marketing Professionals Subscription Revenue: Standed at $4.25 billion, experiencing 11% growth YoY, or 10% in constant currency.
FY2025 Financial Highlights
- Total Revenue: Reached $23.77 billion, which indicates an 11% increase YoY in both reported and constant currency.
- Earnings per Share:
- GAAP: $16.70, up 35%
- Non-GAAP: $20.94, up 14.0%
- Total Annualized Recurring Revenue (ARR): Exited the year at $25.20 billion, representing 11.5% YoY growth.
- Operating Income:
- GAAP: $8.71 billion, up 29%
- Non-GAAP: $10.99 billion, up 9%
- Net Income:
- GAAP: $7.13 billion, an increase of 28.2%
- Non-GAAP: $8.94 billion, up 7.4%
- Cash Flows from Operations: Generated $10.03 billion for the year.
Share Repurchase for FY2025
- Total shares repurchased in FY2025 were approximately 30.8 million.
FY2025 Business Segment Highlights
- Digital Media Segment Revenue: Ended at $17.65 billion, reflecting 11% year-over-year growth, consistent in constant currency. Digital Media ARR was $19.20 billion, also up 11.5% YoY.
- Digital Experience Segment Revenue: Recorded $5.86 billion, indicating a 9% increase YoY; subscription revenue was $5.41 billion, growing at 11% YoY.
FY2025 Customer Group Highlights
- Total Customer Group Subscription Revenue: Registered at $22.80 billion, which shows a 12% increase YoY, in both reported and constant currency.
- Business Professionals & Consumers Subscription Revenue: Achieved $6.50 billion, reflecting a 15% YoY growth.
- Creative & Marketing Professionals Subscription Revenue: Totaled $16.30 billion, marking an 11% increase YoY.
Future Guidance
- Adobe targets total revenue for FY2026 between $25.90 billion to $26.10 billion, with expected growth in total Adobe ending ARR by 10.2% YoY.
- The company anticipates diluted EPS of $17.90 to $18.10 on a GAAP basis and $23.30 to $23.50 on a Non-GAAP basis.
The comprehensive financial results illustrate Adobe’s strong performance and commitment to innovation and growth as it heads into FY2026, leveraging its position in the AI technology landscape.
Condensed Consolidated Statements of Income
(In millions, except per share data; unaudited)
| Three Months Ended | Year Ended | |||
|---|---|---|---|---|
| November 28, 2025 | November 29, 2024 | November 28, 2025 | November 29, 2024 | |
| Revenue: | ||||
| Subscription | $5,989 | $5,365 | $22,904 | $20,521 |
| Product | $74 | $81 | $325 | $386 |
| Services and other | $131 | $160 | $540 | $598 |
| Total revenue | $6,194 | $5,606 | $23,769 | $21,505 |
| Cost of revenue: | ||||
| Subscription | $522 | $475 | $2,027 | $1,799 |
| Product | $6 | $6 | $23 | $25 |
| Services and other | $121 | $135 | $501 | $534 |
| Total cost of revenue | $649 | $616 | $2,551 | $2,358 |
| Gross profit | $5,545 | $4,990 | $21,218 | $19,147 |
| Operating expenses: | ||||
| Research and development | $1,098 | $999 | $4,294 | $3,944 |
| Sales and marketing | $1,728 | $1,536 | $6,488 | $5,764 |
| General and administrative | $421 | $456 | $1,573 | $1,529 |
| Acquisition termination fee | $— | $— | $— | $1,000 |
| Amortization of intangibles | $37 | $42 | $157 | $169 |
| Total operating expenses | $3,284 | $3,033 | $12,512 | $12,406 |
| Operating income | $2,261 | $1,957 | $8,706 | $6,741 |
| Non-operating income (expense): | ||||
| Interest expense | -$66 | -$50 | -$263 | -$169 |
| Investment gains (losses), net | $12 | $14 | $43 | $48 |
| Other income (expense), net | $57 | $70 | $248 | $311 |
| Total non-operating income (expense), net | $3 | $34 | $28 | $190 |
| Income before income taxes | $2,264 | $1,991 | $8,734 | $6,931 |
| Provision for income taxes | $408 | $308 | $1,604 | $1,371 |
| Net income | $1,856 | $1,683 | $7,130 | $5,560 |
| Basic net income per share | $4.45 | $3.81 | $16.73 | $12.43 |
| Shares used to compute basic net income per share | $417 | $441 | $426 | $447 |
| Diluted net income per share | $4.45 | $3.79 | $16.70 | $12.36 |
| Shares used to compute diluted net income per share | $417 | $443 | $427 | $450 |
Condensed Consolidated Balance Sheets
(In millions; unaudited)
| November 28, 2025 | November 29, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $5,431 | $7,613 |
| Short-term investments | $1,164 | $273 |
| Trade receivables, net of allowances for | ||
| doubtful accounts of $13 and $14, | $2,344 | $2,072 |
| respectively | ||
| Prepaid expenses and other current assets | $1,224 | $1,274 |
| Total current assets | $10,163 | $11,232 |
| Property and equipment, net | $1,873 | $1,936 |
| Operating lease right-of-use assets, net | $312 | $281 |
| Goodwill | $12,857 | $12,788 |
| Other intangibles, net | $495 | $782 |
| Deferred income taxes | $2,186 | $1,657 |
| Other assets | $1,610 | $1,554 |
| Total assets | $29,496 | $30,230 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Trade payables | $417 | $361 |
| Accrued expenses and other current liabilities | $2,648 | $2,336 |
| Debt | $— | $1,499 |
| Deferred revenue | $6,905 | $6,131 |
| Income taxes payable | $153 | $119 |
| Operating lease liabilities | $77 | $75 |
| Total current liabilities | $10,200 | $10,521 |
| Long-term liabilities: | ||
| Debt | $6,210 | $4,129 |
| Deferred revenue | $125 | $128 |
| Income taxes payable | $469 | $548 |
| Operating lease liabilities | $361 | $353 |
| Other liabilities | $508 | $446 |
| Total liabilities | $17,873 | $16,125 |
| Stockholders’ equity: | ||
| Preferred stock | $— | $— |
| Common stock | $— | $— |
| Additional paid-in capital | $15,361 | $13,419 |
| Retained earnings | $45,354 | $38,470 |
| Accumulated other comprehensive income (loss) | -$245 | -$201 |
| Treasury stock, at cost | -$48,847 | -$37,583 |
| Total stockholders’ equity | $11,623 | $14,105 |
| Total liabilities and stockholders’ equity | $29,496 | $30,230 |