Adobe (ADBE) Q4 2025 earnings summary

Executive summary

• Achieved record FY2025 revenue of $23.77B, up 11% year-over-year, with non-GAAP EPS of $20.94 and GAAP EPS of $16.70, driven by strong global demand for AI-powered solutions and expansion across all customer groups.

• Digital Media and Digital Experience segments delivered double-digit growth, fueled by AI innovation, new product launches, and increased user engagement.

• AI-influenced offerings now account for over one-third of total ARR, with significant growth in AI-influenced ARR and user engagement.

• Announced intent to acquire Semrush for $1.9B to enhance brand visibility, marketing, and generative engine optimization capabilities.

• Major product launches and partnerships included Firefly, Acrobat AI Assistant, Brand Concierge, and integrations with AWS, Azure, Google Gemini, and OpenAI.

Financial highlights

• FY2025 revenue: $23.77B (+11% YoY); Q4 revenue: $6.19B (+10% YoY); FY2025 GAAP EPS: $16.70 (+24–35% YoY); non-GAAP EPS: $20.94 (+14% YoY); Q4 non-GAAP EPS: $5.50 (+14% YoY).

• Operating cash flow exceeded $10B for FY2025; Q4 operating cash flow was $3.16B.

• Repurchased 30.8M shares in FY2025, nearly $12B in buybacks, reducing shares outstanding by over 6%.

• Digital Media FY2025 revenue: $17.65B (+11% YoY); Digital Experience FY2025 revenue: $5.86B (+9% YoY); Digital Media ending ARR: $19.2B (+11.5% YoY); total RPO at year-end: $22.52B (+13% YoY).

• Q4 GAAP net income: $1.86B; non-GAAP net income: $2.29B; FY2025 GAAP net income: $7.13B; non-GAAP net income: $8.94B.

Outlook and guidance

• FY2026 revenue target: $25.90B–$26.10B; ARR growth target: 10.2% (~$2.6B net new ARR); non-GAAP operating margin: ~45%.

• FY2026 GAAP EPS: $17.90–$18.10; non-GAAP EPS: $23.30–$23.50; Q1 FY2026 revenue: $6.25B–$6.30B; Q1 non-GAAP EPS: $5.85–$5.90.

• Guidance excludes Semrush contribution; acquisition expected to close in 1H FY2026.

• FY2026 GAAP tax rate target: ~20.5%; non-GAAP tax rate: ~18%; diluted share count: ~403M.

• Announced reporting and guidance changes for FY2026, focusing on customer group subscription revenue and total company ending ARR growth.