Companies /Technology
Adobe Inc
NASDAQ: ADBE Software - Application
$246.73
▲ $1.53 (+0.62%) today
Markets open · 2:10pm ET

Adobe (ADBE) 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
6 quarters
Consecutive EPS beats

How Did ADBE Stock React to Q1 2025 Earnings?

% 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

Yes. Adobe reported Q1 2025 earnings of $5.08 a share on Mar 12, 2025, beating the $4.97 consensus estimate by 2.2%. Revenue was $5.7B against a $5.7B estimate.

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

What Was Adobe's Outlook in Q1 2025?

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

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