Companies /Technology

Adobe Inc

NASDAQ: ADBE Software - Application
$289.15
â–² $15.68 (+5.73%) today
Markets closed · 6:28pm ET

Q1 2025 Earnings

Reported Mar 12, 2025, 4:06pm ET · SEC source
$5.08
Beat +2.17%
EPS · est. $4.97
$5.7B
Beat +0.93%
Revenue · est. $5.7B
−4.9%
Trailing market
ADBE vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0Mar 12Mar 13report 4:06pm ETearnings−0.8%−11.3%
−10%−5%0Mar 12Mar 13earnings−0.8%−11.3%
ADBE −11.3%S&P 500 −0.8%
−10%−5%0Mar 12Mar 13report 4:06pm ETearnings−1.0%−11.3%
−10%−5%0Mar 12Mar 13earnings−1.0%−11.3%
ADBE −11.3%NASDAQ −1.0%
−10%−5%0+5%Mar 11Mar 20report 4:06pm ETearnings+1.3%−7.9%
−10%−5%0+5%Mar 11Mar 20earnings+1.3%−7.9%
ADBE −7.9%S&P 500 +1.3%
−10%−5%0+5%Mar 11Mar 20report 4:06pm ETearnings+0.7%−7.9%
−10%−5%0+5%Mar 11Mar 20earnings+0.7%−7.9%
ADBE −7.9%NASDAQ +0.7%
−13.85%
Day of report
+4.47%
Next session
+3.12%
One week
−7.13%
30 days

S&P 500 over the same 30 days: −2.23%.

Did ADBE Beat Earnings? Q1 2025 Results

Adobe opened fiscal 2025 on a strong note, posting first-quarter revenue of $5.71 billion and non-GAAP diluted EPS of $5.08 — clearing the $4.97 consensus estimate by 2.17% and topping revenue expectations by 0.93% — as the company's AI-first product strategy begins to show measurable commercial results. The single most telling data point: Adobe's AI-powered offerings exited the quarter with over $125 million in ending ARR book of business, underpinning 10% year-over-year revenue growth and a record $2.48 billion in operating cash flow. The Digital Media segment led the way with $4.23 billion in revenue and Digital Media ARR growing 12.6% year-over-year to $17.63 billion, while the Digital Experience segment added $1.41 billion. Despite some <a href="https://247wallst.com/investing/2025/12/03/retail-investors-price-in-91-chance-adobe-beats-estimates-on-december-10/">retail investor caution around guidance</a>, Adobe held firm on its full-year targets of $23.30 billion to $23.55 billion in revenue and non-GAAP EPS of $20.20 to $20.50, with Q2 revenue guided to $5.77 billion to $5.82 billion.

Key Takeaways
  • AI-first standalone and add-on product innovations driving new ARR
  • Digital Media ARR growth of 12.6% year-over-year to $17.63 billion
  • Business Professionals and Consumers subscription revenue growing 15% year-over-year
  • 11% constant currency growth in Digital Media revenue
  • Diversified go-to-market strategy
  • Absence of Figma acquisition termination fee that impacted year-ago quarter

“Adobe's success over the next decade will be driven by customer-focused innovation and new offerings for creators, marketing professionals, business professionals and consumers.”

Adobe CEO, on the earnings call

Forward Guidance & Outlook

Adobe reaffirmed its FY2025 financial targets: total revenue of $23.30 billion to $23.55 billion, Digital Media segment revenue of $17.25 billion to $17.40 billion, Digital Media ending ARR growth of 11.0% year-over-year, Digital Experience segment revenue of $5.80 billion to $5.90 billion, GAAP EPS of $15.80 to $16.10, and non-GAAP EPS of $20.20 to $20.50, assuming non-GAAP operating margin of ~46% and non-GAAP tax rate of ~18.5%. For Q2 FY2025, Adobe targets total revenue of $5.77 billion to $5.82 billion, Digital Media segment revenue of $4.27 billion to $4.30 billion, Digital Experience segment revenue of $1.43 billion to $1.45 billion, GAAP EPS of $3.80 to $3.85, and non-GAAP EPS of $4.95 to $5.00.

ADBE YoY Financials

Revenue$5.7B
Gross Profit$5.1B
Operating Income$2.2B
Net Income$1.8B

ADBE Revenue by Segment

Digital Experience Subscriptions
Digital Media$4.2B+11.0%
Creative & Marketing Professionals Subscriptions$3.9B+10.0%
Business Professionals & Consumers Subscriptions$1.5B+15.0%
Digital Experience$1.4B+10.0%

Figures from SEC filings and company reports. Not investment advice.