Adobe Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.17%.
Did ADBE Beat Earnings? Q4 2025 Results
Adobe closed out fiscal 2025 with a record-breaking quarter, posting Q4 revenue of $6.19 billion — up 10.5% year-over-year — and non-GAAP diluted EPS of $5.50 that ran well ahead of the $4.28 consensus estimate by 28.50%, a result that <a href="https://247wallst.com/investing/2025/12/03/retail-investors-price-in-91-chance-adobe-beats-estimates-on-december-10/">many investors had anticipated</a> heading into the print. The revenue beat of 1.29% above the $6.11 billion consensus was narrower but still meaningful, with Digital Media leading the charge at $4.62 billion in Q4 revenue as AI-driven tool adoption accelerated adoption across both creative professionals and the company's fast-growing business and consumer segment. CEO Shantanu Narayen credited Adobe's deepening role in the global AI ecosystem as a central catalyst, and the numbers bore that out — Total Adobe ARR reached $25.20 billion at year-end, growing 11.5% year-over-year. Looking ahead, Adobe guided FY2026 revenue to $25.90–$26.10 billion with non-GAAP EPS of $23.30–$23.50, reflecting continued confidence in its AI monetization trajectory even as shares faced some pressure in late December trading.
- Strong global demand for AI solutions across customer groups
- 10% YoY revenue growth as reported and in constant currency in Q4
- Record operating cash flows of over $10 billion in FY2025
- Digital Media ARR exiting year was $19.20 billion, 11.5% YoY growth
- Total Adobe ARR exiting year was $25.20 billion, 11.5% YoY growth
- Business Professionals & Consumers subscription revenue grew 15% YoY in Q4
“Adobe's record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools. 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 CEO, on the earnings call
Forward Guidance & Outlook
For FY2026, Adobe targets total revenue of $25.90 billion to $26.10 billion, non-GAAP EPS of $23.30 to $23.50, GAAP EPS of $17.90 to $18.10, and Total Adobe ending ARR growth of 10.2% year-over-year. For Q1 FY2026, Adobe targets total revenue of $6.25 billion to $6.30 billion, non-GAAP EPS of $5.85 to $5.90, and GAAP EPS of $4.55 to $4.60. FY2026 targets assume non-GAAP operating margin of ~45.0%, GAAP tax rate of ~20.5%, non-GAAP tax rate of ~18.0%, and diluted share count of ~403 million. These targets do not include any contributions from the pending Semrush Holdings acquisition.
ADBE YoY Financials
ADBE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.