Adobe (ADBE) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 FY25 revenue of $5.71 billion, up 11% year-over-year, with GAAP EPS of $4.14 and non-GAAP EPS of $5.08, up 13% year-over-year.

• Net income rose 192% year-over-year to $1.81 billion, reflecting lower operating expenses due to the prior year's $1 billion Figma termination fee.

• Digital Media revenue reached $4.23 billion (12% YoY growth), and Digital Experience revenue was $1.41 billion (11% YoY growth).

• Digital Media ARR ended at $17.63 billion, up 12.6% year-over-year.

• AI-driven products contributed over $125 million in new business, expected to double by year-end.

Financial highlights

• Q1 revenue: $5.71 billion (+11% YoY); GAAP EPS: $4.14; non-GAAP EPS: $5.08 (+13% YoY).

• Q1 GAAP net income: $1.81 billion; non-GAAP net income: $2.22 billion.

• Cash flow from operations: $2.48 billion (Q1 record); cash and short-term investments: $7.44 billion.

• Remaining performance obligations: $19.69 billion (+12% YoY); CRPO up 11%.

• Share repurchases: $3.25 billion in Q1; $14.4 billion remaining on $25 billion authorization.

Outlook and guidance

• Q2 FY25 revenue guidance: $5.77–$5.82 billion; GAAP EPS: $3.80–$3.85; non-GAAP EPS: $4.95–$5.00.

• FY25 revenue guidance: $23.30–$23.55 billion; GAAP EPS: $15.80–$16.10; non-GAAP EPS: $20.20–$20.50.

• Digital Media segment revenue expected at $17.25–$17.40 billion for FY25; Digital Experience segment at $5.80–$5.90 billion.

• Non-GAAP operating margin guidance: ~45% for Q2, ~46% for FY25.

• Reaffirmed full-year FY25 guidance, assuming current macroeconomic conditions.