Adobe Reports Record Revenue in Q2 and Raises FY25 Targets

Adobe has released its latest SEC 8-K filing, revealing record-breaking financial results for the second quarter of fiscal year 2025, which ended on May 30, 2025. The company has also raised its revenue and earnings per share (EPS) targets for the fiscal year 2025, reflecting strong performance and strategic investments in AI innovation.

Financial Highlights

Adobe reported a record revenue of $5.87 billion for Q2 FY25, marking an 11% year-over-year growth. The diluted EPS was $3.94 on a GAAP basis and $5.06 on a non-GAAP basis. GAAP operating income stood at $2.11 billion, while non-GAAP operating income was $2.67 billion. The company also reported GAAP net income of $1.69 billion and non-GAAP net income of $2.17 billion. Cash flows from operations were robust at $2.19 billion.

Business and Operational Highlights

The Digital Media segment generated $4.35 billion in revenue, reflecting an 11% year-over-year growth. The Digital Experience segment contributed $1.46 billion, a 10% increase from the previous year. Notably, the Digital Media Annualized Recurring Revenue (ARR) reached $18.09 billion, representing a 12.1% year-over-year growth.

Strategic Initiatives and Corporate Developments

Adobe repurchased approximately 8.6 million shares during the quarter, demonstrating its commitment to returning value to shareholders. The company continues to invest heavily in AI innovation, aiming to enhance value realization and expand its customer base across various segments.

Management's Perspective

Shantanu Narayen, Chair and CEO of Adobe, expressed satisfaction with the company's strategy to deliver innovative solutions for business professionals, consumers, and creative and marketing professionals. Dan Durn, Executive Vice President and CFO, highlighted the strong performance in the first half of the year as a key driver for raising the FY25 revenue and EPS targets.

Future Outlook

Adobe has updated its financial targets for FY25, projecting total revenue between $23.50 billion and $23.60 billion. The company expects GAAP EPS to range from $16.30 to $16.50 and non-GAAP EPS to be between $20.50 and $20.70. For Q3 FY25, Adobe anticipates total revenue between $5.875 billion and $5.925 billion, with GAAP EPS ranging from $4.00 to $4.05 and non-GAAP EPS from $5.15 to $5.20.

SEC Filing: ADOBE INC. [ ADBE ] - 8-K - Jun. 12, 2025