Adobe reports record revenue of $5.87 billion in Q2 FY 2025

New Delhi: Adobe reported a record revenue of $5.87 billion for the second quarter of fiscal year 2025, marking an 11% year-on-year increase. The software company also raised its full-year revenue and earnings targets following strong performance in the first half of the year.

According to the company’s statement, diluted earnings per share stood at $3.94 on a GAAP basis and $5.06 on a non-GAAP basis for the quarter ended 30 May 2025. Operating income for the period reached $2.11 billion (GAAP) and $2.67 billion (non-GAAP), while net income was $1.69 billion and $2.17 billion respectively.

Cash flow from operations totalled $2.19 billion. Adobe also repurchased approximately 8.6 million shares during the quarter. Remaining performance obligations were reported at $19.69 billion, with current RPO at 67%.

Business segment highlights

The Digital Media segment contributed $4.35 billion to quarterly revenue, an 11% increase from the previous year. Annualised recurring revenue (ARR) from this segment grew 12.1% year-over-year to $18.09 billion.

Revenue from the Digital Experience segment reached $1.46 billion, up 10% from the same period last year. Subscription revenue within this segment rose 11% to $1.33 billion.

Adobe also reported results by customer group:

• The Business Professionals and Consumers Group brought in $1.60 billion in subscription revenue, a 15% increase.
  
  

• The Creative and Marketing Professionals Group accounted for $4.02 billion, up 10%.
  
  

Raised financial targets for FY25

Based on its year-to-date performance and ongoing AI investments, Adobe has revised its financial outlook. The company now projects full-year revenue in the range of $23.50 billion to $23.60 billion, up from previous estimates. FY25 non-GAAP earnings per share are expected to be between $20.50 and $20.70, while GAAP EPS is forecasted between $16.30 and $16.50.

Third-quarter revenue is expected to be in the range of $5.875 billion to $5.925 billion, with EPS guidance of $4.00 to $4.05 (GAAP) and $5.15 to $5.20 (non-GAAP).

The updated guidance assumes stable macroeconomic conditions, a non-GAAP operating margin of around 46%, and a diluted share count of approximately 428 million.

Outlook and AI strategy

Adobe attributed the raised targets to continued adoption of its AI-enabled tools across customer segments. It highlighted strategic investment in artificial intelligence as a core driver of product innovation and customer engagement.

The company will host its Q2 earnings call via webcast today at 2:00 p.m. Pacific Time. Supporting materials, including earnings documents and an investor datasheet, are available on Adobe’s investor relations website.