Adobe Reports Record Q4 and FY2025 Revenue

Core Insights - Adobe reported record revenue of $6.19 billion for Q4 FY2025, reflecting a 10% year-over-year growth in both reported and constant currency [7] - The company achieved a total revenue of $23.77 billion for FY2025, representing an 11% year-over-year growth [7] - Adobe's CEO highlighted the growing importance of the company in the global AI ecosystem and targeted double-digit Annual Recurring Revenue (ARR) growth for FY2026 [2] Financial Highlights - Q4 FY2025 diluted earnings per share (EPS) was $4.45 on a GAAP basis and $5.50 on a non-GAAP basis [7] - GAAP operating income for Q4 was $2.26 billion, while non-GAAP operating income was $2.82 billion [7] - The company generated record cash flows from operations of $3.16 billion in Q4 [7] Business Segment Performance - Digital Media segment revenue reached $4.62 billion in Q4 FY2025, marking an 11% year-over-year growth [7] - Digital Experience segment revenue was $1.52 billion, representing a 9% year-over-year growth [7] - Total Customer Group subscription revenue was $5.96 billion, reflecting a 12% year-over-year growth [7] Annual Performance - For FY2025, Digital Media segment revenue was $17.65 billion, with an 11% year-over-year growth [13] - Digital Experience segment revenue totaled $5.86 billion, showing a 9% year-over-year growth [13] - Total Customer Group subscription revenue for FY2025 was $22.80 billion, representing a 12% year-over-year growth [13] Future Guidance - Adobe anticipates total revenue for FY2026 to be between $25.90 billion and $26.10 billion [11] - The company expects Business Professionals & Consumers subscription revenue to be between $7.35 billion and $7.40 billion [11] - Creative & Marketing Professionals subscription revenue is projected to be between $17.75 billion and $17.90 billion [11] Share Repurchase - Adobe repurchased approximately 7.2 million shares during Q4 FY2025 and around 30.8 million shares throughout FY2025 [7]