Adobe(ADBE)2025-06-12 20:19Financial Performance - Adobe achieved record revenue of $5.87 billion in Q2 FY25, representing 11% year-over-year growth[5] - Diluted earnings per share were $3.94 on a GAAP basis and $5.06 on a non-GAAP basis[5] - Digital Media segment revenue was $4.35 billion, reflecting 11% year-over-year growth, with an Annualized Recurring Revenue (ARR) of $18.09 billion, up 12.1% year-over-year[5] - Digital Experience segment revenue reached $1.46 billion, showing 10% year-over-year growth, with subscription revenue of $1.33 billion, up 11% year-over-year[5] - Net income for the three months ended May 30, 2025, was $1,691 million, an increase of 7.5% compared to $1,573 million for the same period in 2024[17] - Non-GAAP operating income for the three months ended May 30, 2025, was $2,674 million, up 9.5% from $2,441 million in the same period last year[20] - GAAP diluted net income per share increased to $3.94 for the three months ended May 30, 2025, compared to $3.49 for the same period in 2024, reflecting a growth of 12.9%[20] - Cash flows from operating activities for the three months ended May 30, 2025, were $2,191 million, compared to $1,940 million for the same period in 2024, representing a 12.9% increase[17] Revenue Projections - For Q3 FY25, Adobe targets total revenue of $5.875 billion to $5.925 billion and earnings per share of $4.00 to $4.05 on a GAAP basis[6] - For FY25, total revenue is projected to be between $23.50 billion and $23.60 billion, with GAAP earnings per share expected to be between $16.30 and $16.50[6] - The Business Professionals and Consumers Group subscription revenue was $1.60 billion, representing 15% year-over-year growth[9] - The Creative and Marketing Professionals Group subscription revenue was $4.02 billion, reflecting 10% year-over-year growth[9] Performance Obligations - Remaining Performance Obligations (RPO) were $19.69 billion, with Current Remaining Performance Obligations (cRPO) at 67%[5] Stock Repurchase - Adobe repurchased approximately 8.6 million shares during the quarter[5] - The company repurchased $3,500 million of common stock during the three months ended May 30, 2025, compared to $2,500 million in the same period last year, indicating a 40% increase in stock repurchases[17] Tax and Margins - The effective income tax rate for GAAP was 19.5% for the second quarter of fiscal 2025, with a non-GAAP effective income tax rate of 18.5%[21][28] - For fiscal year 2025, the company projects GAAP diluted net income per share to be between $16.30 and $16.50, while non-GAAP diluted net income per share is expected to be between $20.50 and $20.70[25] - The GAAP operating margin for fiscal year 2025 is projected to be 36.0%, with a non-GAAP operating margin of 46.0%[25] Cash and Financing Activities - Cash and cash equivalents at the end of the period were $4,931 million, down from $7,660 million at the end of the same period last year[17] - Net cash used for financing activities was $3,788 million for the three months ended May 30, 2025, compared to $642 million in the same period last year, indicating a significant increase in cash outflow for financing[17]