Adobe Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.20%.
Did ADBE Beat Earnings? Q2 2025 Results
Adobe delivered a clean beat across the board in Q2 fiscal 2025, reporting non-GAAP EPS of $5.06 against a consensus of $4.97 — a 1.74% beat — while revenue of $5.87 billion edged past estimates by 1.29% and grew 10.6% year over year. The primary engine behind the quarter was Digital Media, where $4.35 billion in segment revenue and $18.09 billion in exiting Annualized Recurring Revenue — up 12.1% year over year — reinforced the durability of Adobe's subscription model. Business Professionals and Consumers emerged as the fastest-growing customer cohort, with subscription revenue climbing 15% year over year, underscoring how Adobe is expanding well beyond its traditional creative professional base. Despite the strong print, some investors reacted cautiously, reflecting lingering concerns about competitive pressures in the AI landscape. Management responded by raising its full-year revenue target to $23.50–$23.60 billion and non-GAAP EPS guidance to $20.50–$20.70, while <a href="https://247wallst.com/investing/2025/12/03/retail-investors-price-in-91-chance-adobe-beats-estimates-on-december-10/">Q3 guidance of $5.88–$5.93 billion</a> signals continued confidence in the back half.
- Record revenue driven by 11% year-over-year growth as reported and in constant currency
- Digital Media ARR reached $18.09 billion, growing 12.1% year-over-year
- Business Professionals and Consumers subscription revenue grew 15% year-over-year
- Creative and Marketing Professionals subscription revenue grew 10% (11% in constant currency)
- Digital Experience subscription revenue grew 11% year-over-year
- AI innovation transforming industries and enabling unprecedented levels of creativity
“Our strategy to deliver ground-breaking innovation for Business Professionals and Consumers, and Creative and Marketing Professionals is delighting customers and we are pleased to raise Adobe's FY25 revenue target.”
Adobe CEO, on the earnings call
Forward Guidance & Outlook
Adobe raised its FY25 total revenue target to $23.50 billion to $23.60 billion (up from prior guidance) and non-GAAP EPS to $20.50 to $20.70. For Q3 FY25, the company targets total revenue of $5.875 billion to $5.925 billion, Digital Media segment revenue of $4.37 billion to $4.40 billion, Digital Experience segment revenue of $1.45 billion to $1.47 billion, and non-GAAP EPS of $5.15 to $5.20. FY25 targets assume non-GAAP operating margin of ~46%, non-GAAP tax rate of ~18.5%, and diluted share count of ~428 million. Digital Media ending ARR growth is targeted at 11.0% year over year. Targets assume current macroeconomic conditions.
ADBE YoY Financials
ADBE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.