Adobe (ADBE) reported stronger-than-expected results for its fiscal second quarter, driven by record sales and solid growth in its core business segments. The company also raised its full-year revenue and earnings guidance, signaling continued momentum.
The software giant posted quarterly revenue of $5.87 billion, an 11% increase from a year earlier and ahead of consensus estimates from Visible Alpha. Adjusted net income rose to $2.17 billion, or $5.06 per share, compared to $2.02 billion, or $4.48 per share, in the same quarter last year—both figures exceeding Wall Street expectations.
The growth was led by Adobe’s Digital Media segment, which includes its popular Creative Cloud suite. Revenue in that division rose 11% year-over-year to $4.35 billion, surpassing analyst projections.
Looking ahead, Adobe raised its full-year revenue forecast to a range of $23.5 billion to $23.6 billion, up from its prior guidance of $23.3 billion to $23.55 billion. The company now expects adjusted earnings per share of $20.50 to $20.70, compared with its earlier outlook of $20.20 to $20.50. For the third quarter, Adobe projects adjusted earnings of $5.15 to $5.20 per share and revenue between $5.88 billion and $5.93 billion, both above analyst expectations.
Despite the strong report, Adobe shares slipped about 1% in after-hours trading. The stock was down approximately 7% for the year as of Thursday’s close.
“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,” said Shantanu Narayen, chair and CEO of Adobe. “Adobe’s AI innovation is transforming industries enabling individuals and enterprises to achieve unprecedented levels of creativity.”
“As a result of us driving strong performance in the first half of the year, we are pleased to raise Adobe’s FY25 total revenue and EPS targets,” added Dan Durn, executive vice president and CFO. “We continue to invest in AI innovation across our customer groups to enhance value realization and expand the universe of customers we serve.”
Q2 FY2025 Financial Highlights:
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Revenue: $5.87 billion (up 11% YoY, both reported and constant currency)
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GAAP EPS: $3.94
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Non-GAAP EPS: $5.06
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GAAP Operating Income: $2.11 billion
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Non-GAAP Operating Income: $2.67 billion
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GAAP Net Income: $1.69 billion
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Non-GAAP Net Income: $2.17 billion
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Operating Cash Flow: $2.19 billion
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Remaining Performance Obligations (RPO): $19.69 billion
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Current RPO (cRPO): 67%
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Shares Repurchased: 8.6 million
Business Segment Highlights:
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Digital Media Revenue: $4.35 billion (up 11% YoY, 12% in constant currency)
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Digital Media ARR: $18.09 billion (up 12.1% YoY)
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Digital Experience Revenue: $1.46 billion (up 10% YoY, both reported and constant currency)
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Digital Experience Subscription Revenue: $1.33 billion (up 11% YoY)
Customer Group Highlights:
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Business Professionals and Consumers Group Subscription Revenue: $1.60 billion (up 15% YoY, reported and constant currency)
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Creative and Marketing Professionals Group Subscription Revenue: $4.02 billion (up 10% YoY, 11% in constant currency)
Adobe’s performance reflects steady demand across its product portfolio, with continued investment in AI and digital transformation tools seen as key growth drivers for the remainder of the year.
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