Adobe (Nasdaq:ADBE), the global technology leader that unleashes creativity and productivity for individuals and businesses through innovative platforms and tools, today reported financial results for its fourth quarter and FY2025 ended Nov. 28, 2025.

“Adobe’s record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools,” said Shantanu Narayen, chair and CEO, Adobe. “By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026.”

“Adobe delivered another outstanding year, fueled by strong global demand for our AI solutions across Business Professionals & Consumers and Creative & Marketing Professionals customer groups,” said Dan Durn, executive vice president and CFO, Adobe. “Looking ahead to FY2026, we are confident in our ability to deliver industry-leading innovations, double-digit ARR growth and world class profitability.”

Fourth Quarter FY2025 Financial Highlights

Fourth Quarter FY2025 Business Segment Highlights

Fourth Quarter FY2025 Customer Group Highlights

FY2025 Financial Highlights

FY2025 Business Segment Highlights

FY2025 Customer Group Highlights

Disclosure Updates

Beginning in FY2026, we will implement reporting and guidance changes. Our reporting and guidance will focus on customer group subscription revenue and total company ending ARR year-over-year growth, while also guiding on total Adobe revenue and EPS. We will continue to report subscription revenue for Digital Media and Digital Experience as supplemental disclosures.

Financial Targets

We revalued ending ARR at the end of FY2025 which resulted in a $460 million increase to Total Adobe ARR, from $25.20 billion to $25.66 billion entering FY2026, primarily from foreign exchange rate changes. We now provide historical information on Total Adobe ARR going back to FY2023 in our investor data sheet.

These targets factor in expectation for current macroeconomic conditions and do not include any contributions from Semrush Holdings, Inc., subject to regulatory approvals and other customary closing conditions.

The following table summarizes Adobe’s FY2026 targets¹

The following table summarizes Adobe’s first quarter FY2026 targets²

Additional Information

represents all subscription revenue across Business Professionals & Consumers and Creative & Marketing Professionals.Total Customer Group Subscription Revenue

represents the annual value of subscription contracts in the Creative & Marketing Professionals and Business Professionals & Consumers customer groups.Total Adobe ARR

reflects ARR from the product offerings and tiers that the customers select that are enhanced by AI features and functionalities embedded in the product. We will periodically update product offerings and tiers included in Total AI-Influenced ARR based on new AI capabilities and workflows.Total AI-Influenced ARR

Adobe to Host Conference Call

Adobe will webcast its fourth quarter and fiscal year 2025 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website:http://www.adobe.com/ADBE

Forward-Looking Statements, Non-GAAP and Other Disclosures

In addition to historical information, this press release contains “forward-looking statements” within the meaning of applicable securities laws, including statements related to our business, strategy, artificial intelligence (“AI”) and innovation momentum; our market and AI opportunity and future growth; market and AI trends; current macroeconomic conditions; fluctuations in foreign currency exchange rates; strategic investments; customer success and groups; expectations regarding acquisitions and other business transactions; and our financial targets and assumptions related thereto, including revenue, operating margin, operating efficiencies, annualized recurring revenue, tax rate, earnings per share and share count. Each of the forward-looking statements we make in this press release involves risks, uncertainties and assumptions based on information available to us as of the date of this press release. Such risks and uncertainties, many of which relate to matters beyond our control, could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: failure to innovate effectively and meet customer needs; issues relating to development and use of AI; failure to compete effectively; damage to our reputation or brands; failure to realize the anticipated benefits of investments or acquisitions; service interruptions or failures in information technology systems by us or third parties; security incidents; failure to effectively develop, manage and maintain critical third-party business relationships; risks associated with being a multinational corporation and adverse macroeconomic conditions; complex sales cycles; failure to recruit and retain key personnel; litigation, regulatory inquiries and intellectual property infringement claims; changes in, and compliance with, global laws and regulations, including those related to information security and privacy; failure to protect our intellectual property; changes in tax regulations; complex government procurement processes; risks related to fluctuations in or the timing of revenue recognition from our subscription offerings; fluctuations in foreign currency exchange rates; impairment charges; our existing and future debt obligations; catastrophic events; and fluctuations in our stock price. Further information on these and other factors are discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and Adobe's most recently filed Quarterly Reports on Form 10-Q. The risks described in this press release and in Adobe’s filings with the U.S. Securities and Exchange Commission should be carefully reviewed.

Undue reliance should not be placed on the financial information set forth in this press release, which reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Annual Report on Form 10-K for our fiscal year ended Nov. 28, 2025, which Adobe expects to file in Jan. 2026.

Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.

A reconciliation between GAAP and non-GAAP earnings results and financial targets and a statement regarding use of non-GAAP financial information are provided at the end of this press release and on Adobe’s investor relations website. Definitions of our non-GAAP financial measures are provided in the Current Report on Form 8-K relating to this press release.

About Adobe

Adobe is changing the world through personalized digital experiences. For more information, visitwww.adobe.com

©2025 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in the United States and/or other countries. All other trademarks are the property of their respective owners.

Non-GAAP Results

The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release.

Non-GAAP Results (continued)

The following table shows Adobe’s fourth quarter fiscal year 2025 GAAP tax rate reconciled to the non-GAAP tax rate included in this release.

Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions

The following tables show Adobe's annual fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.

Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions (continued)

The following tables show Adobe's first quarter fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.

Use of Non-GAAP Financial Information

Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate Adobe’s operating results and future prospects in the same manner as management.

Adobe's management believes it is useful for itself and investors to review, as applicable, both GAAP information as well as non-GAAP measures, which may exclude items such as stock-based and deferred compensation expenses, amortization of intangibles, investment gains and losses, income tax adjustments and other items that are not considered part of Adobe’s ongoing operations, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Adobe uses these non-GAAP measures in order to assess the performance of Adobe's business and for planning and forecasting in subsequent periods. Whenever such a non-GAAP measure is used, Adobe provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.

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Total revenue	$25.90 billion to $26.10 billion
Business Professionals & Consumers subscription revenue	$7.35 billion to $7.40 billion
Creative & Marketing Professionals subscription revenue	$17.75 billion to $17.90 billion
Total Adobe ending ARR growth	10.2% year over year
Earnings per share	GAAP: $17.90 to $18.10	Non-GAAP: $23.30 to $23.50

Targets assume non-GAAP operating margin of ~45.0%, GAAP tax rate of ~20.5%, non-GAAP tax rate of ~18.0% and diluted share count of ~403 million for FY2026.

Total revenue	$6.25 billion to $6.30 billion
Business Professionals & Consumers subscription revenue	$1.74 billion to $1.76 billion
Creative & Marketing Professionals subscription revenue	$4.30 billion to $4.33 billion
Earnings per share	GAAP: $4.55 to $4.60	Non-GAAP: $5.85 to $5.90

Targets assume non-GAAP operating margin of ~47.0%, GAAP tax rate of ~21.5%, non-GAAP tax rate of ~18.0% and diluted share count of ~411 million for first quarter FY2026.

Condensed Consolidated Statements of Income (In millions, except per share data; unaudited)

	Three Months Ended						Year Ended
	November 28, 2025			November 29, 2024			November 28, 2025			November 29, 2024
Revenue:
Subscription	$	5,989		$	5,365		$	22,904		$	20,521
Product		74			81			325			386
Services and other		131			160			540			598
Total revenue		6,194			5,606			23,769			21,505

Cost of revenue:
Subscription		522			475			2,027			1,799
Product		6			6			23			25
Services and other		121			135			501			534
Total cost of revenue		649			616			2,551			2,358

Gross profit		5,545			4,990			21,218			19,147

Operating expenses:
Research and development		1,098			999			4,294			3,944
Sales and marketing		1,728			1,536			6,488			5,764
General and administrative		421			456			1,573			1,529
Acquisition termination fee		—			—			—			1,000
Amortization of intangibles		37			42			157			169
Total operating expenses		3,284			3,033			12,512			12,406

Operating income		2,261			1,957			8,706			6,741

Non-operating income (expense):
Interest expense		(66	)		(50	)		(263	)		(169	)
Investment gains (losses), net		12			14			43			48
Other income (expense), net		57			70			248			311
Total non-operating income (expense), net		3			34			28			190
Income before income taxes		2,264			1,991			8,734			6,931
Provision for income taxes		408			308			1,604			1,371
Net income	$	1,856		$	1,683		$	7,130		$	5,560
Basic net income per share	$	4.45		$	3.81		$	16.73		$	12.43
Shares used to compute basic net income per share		417			441			426			447
Diluted net income per share	$	4.45		$	3.79		$	16.70		$	12.36
Shares used to compute diluted net income per share		417			443			427			450

Condensed Consolidated Balance Sheets (In millions; unaudited)

	November 28, 2025			November 29, 2024
ASSETS

Current assets:
Cash and cash equivalents	$	5,431		$	7,613
Short-term investments		1,164			273
Trade receivables, net of allowances for doubtful accounts of $13 and $14, respectively		2,344			2,072
Prepaid expenses and other current assets		1,224			1,274
Total current assets		10,163			11,232

Property and equipment, net		1,873			1,936
Operating lease right-of-use assets, net		312			281
Goodwill		12,857			12,788
Other intangibles, net		495			782
Deferred income taxes		2,186			1,657
Other assets		1,610			1,554
Total assets	$	29,496		$	30,230

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Trade payables	$	417		$	361
Accrued expenses and other current liabilities		2,648			2,336
Debt		—			1,499
Deferred revenue		6,905			6,131
Income taxes payable		153			119
Operating lease liabilities		77			75
Total current liabilities		10,200			10,521

Long-term liabilities:
Debt		6,210			4,129
Deferred revenue		125			128
Income taxes payable		469			548
Operating lease liabilities		361			353
Other liabilities		508			446
Total liabilities		17,873			16,125

Stockholders’ equity:
Preferred stock		—			—
Common stock		—			—
Additional paid-in capital		15,361			13,419
Retained earnings		45,354			38,470
Accumulated other comprehensive income (loss)		(245	)		(201	)
Treasury stock, at cost		(48,847	)		(37,583	)
Total stockholders’ equity		11,623			14,105
Total liabilities and stockholders’ equity	$	29,496		$	30,230

Condensed Consolidated Statements of Cash Flows (In millions; unaudited)

	Three Months Ended
	November 28, 2025			November 29, 2024
Cash flows from operating activities:
Net income	$	1,856		$	1,683
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		184			218
Stock-based compensation		489			441
Lease-related asset impairments		—			78
Other non-cash adjustments		(109	)		(116	)
Changes in deferred revenue		496			353
Changes in other operating assets and liabilities		244			264
Net cash provided by operating activities		3,160			2,921

Cash flows from investing activities:
Purchases, sales and maturities of short-term investments, net		(194	)		50
Purchases of property and equipment		(34	)		(48	)
Purchases and sales of long-term investments, intangibles and other assets, net		82			17
Net cash provided by (used for) investing activities		(146	)		19

Cash flows from financing activities:
Repurchases of common stock		(2,474	)		(2,500	)
Taxes paid related to net share settlement of equity awards, net of proceeds from treasury stock re-issuances		(94	)		(152	)
Other financing activities, net		13			151
Net cash used for financing activities		(2,555	)		(2,501	)
Effect of exchange rate changes on cash and cash equivalents		(10	)		(19	)
Net change in cash and cash equivalents		449			420
Cash and cash equivalents at beginning of period		4,982			7,193
Cash and cash equivalents at end of period	$	5,431		$	7,613

(In millions, except per share data)	Three Months Ended									Year Ended
	November 28,2025			November 29,2024			August 29,2025			November 28,2025			November 29,2024
Operating income:

GAAP operating income	$	2,261		$	1,957		$	2,173		$	8,706		$	6,741
Stock-based and deferred compensation expense		501			455			521			1,973			1,881
Amortization of intangibles		61			84			79			306			334
Acquisition-related expenses		1			—			—			1			1,007
Loss contingency (reversal)		—			—			—			—			(44	)
Lease-related asset impairments and other charges		—			100			—			—			100
Non-GAAP operating income	$	2,824		$	2,596		$	2,773		$	10,986		$	10,019

Net income:

GAAP net income	$	1,856		$	1,683		$	1,772		$	7,130		$	5,560
Stock-based and deferred compensation expense		501			455			521			1,973			1,881
Amortization of intangibles		61			84			79			306			334
Acquisition-related expenses		1			—			—			1			1,007
Loss contingency (reversal)		—			—			—			—			(44	)
Lease-related asset impairments and other charges		—			100			—			—			100
Investment (gains) losses, net		(12	)		(14	)		(23	)		(43	)		(48	)
Income tax adjustments		(113	)		(176	)		(97	)		(426	)		(509	)
Non-GAAP net income	$	2,294		$	2,132		$	2,252		$	8,941		$	8,281

Diluted net income per share:

GAAP diluted net income per share	$	4.45		$	3.79		$	4.18		$	16.70		$	12.36
Stock-based and deferred compensation expense		1.20			1.03			1.23			4.62			4.18
Amortization of intangibles		0.15			0.19			0.19			0.72			0.75
Acquisition-related expenses		—			—			—			—			2.24
Loss contingency (reversal)		—			—			—			—			(0.10	)
Lease-related asset impairments and other charges		—			0.23			—			—			0.22
Investment (gains) losses, net		(0.03	)		(0.03	)		(0.05	)		(0.10	)		(0.10	)
Income tax adjustments		(0.27	)		(0.40	)		(0.24	)		(1.00	)		(1.13	)
Non-GAAP diluted net income per share	$	5.50		$	4.81		$	5.31		$	20.94		$	18.42

Shares used to compute diluted net income per share		417			443			424			427			450

	Fourth Quarter Fiscal 2025
Effective income tax rate:

GAAP effective income tax rate		18.0	%
Income tax adjustments		3.0
Stock-based and deferred compensation expense		(2.3)
Amortization of intangibles		(0.3)
Investment gains (losses), net		0.1
Non-GAAP effective income tax rate^(*)		18.5	%

^(*)

Represents Adobe’s fixed long-term non-GAAP tax rate applicable for fiscal 2023 through fiscal 2025

(Shares in millions)	Fiscal Year 2026
	Low		High
Diluted net income per share:

GAAP diluted net income per share	$	17.90	$	18.10
Stock-based and deferred compensation expense		5.51		5.50
Amortization of intangibles		0.39		0.39
Income tax adjustments		(0.50)		(0.49)
Non-GAAP diluted net income per share	$	23.30	$	23.50

Shares used to compute diluted net income per share	403		403

	Fiscal Year 2026
Operating margin:

GAAP operating margin		36.0	%
Stock-based and deferred compensation expense		8.4
Amortization of intangibles		0.6
Non-GAAP operating margin		45.0	%

	Fiscal Year 2026
Effective income tax rate:

GAAP effective income tax rate		20.5	%
Stock-based and deferred compensation expense		(2.5)
Non-GAAP effective income tax rate^(*)		18.0	%

^(*)

Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028

(Shares in millions)	First Quarter Fiscal 2026
	Low		High
Diluted net income per share:

GAAP diluted net income per share	$	4.55	$	4.60
Stock-based and deferred compensation expense		1.24		1.24
Amortization of intangibles		0.10		0.10
Income tax adjustments		(0.04)		(0.04)
Non-GAAP diluted net income per share	$	5.85	$	5.90

Shares used to compute diluted net income per share	411		411

	First Quarter Fiscal 2026
Operating margin:

GAAP operating margin		38.0	%
Stock-based and deferred compensation expense		8.4
Amortization of intangibles		0.6
Non-GAAP operating margin		47.0	%

	First Quarter Fiscal 2026
Effective income tax rate:

GAAP effective income tax rate		21.5	%
Stock-based and deferred compensation expense		(3.0)
Income tax adjustments		(0.5)
Non-GAAP effective income tax rate^(*)		18.0	%

^(*)

Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028

Adobe achieved record revenue of $6.19 billion in its fourth quarter of FY2025, which represents 10% year-over-year growth as reported and in constant currency. Diluted earnings per share was $4.45 on a GAAP basis and $5.50 on a non-GAAP basis.
GAAP operating income in the fourth quarter was $2.26 billion and non-GAAP operating income was $2.82 billion. GAAP net income was $1.86 billion and non-GAAP net income was $2.29 billion.
Record cash flows from operations were $3.16 billion.
Exiting the quarter, Remaining Performance Obligations (“RPO”) were $22.52 billion, and Current Remaining Performance Obligations (“cRPO”) were 65%.
Adobe repurchased approximately 7.2 million shares during the quarter.

Digital Media segment revenue was $4.62 billion, which represents 11% year-over-year growth as reported and in constant currency.
Digital Experience segment revenue was $1.52 billion, representing 9% year-over-year growth, or 8% in constant currency. Digital Experience subscription revenue was $1.41 billion, representing 11% year-over-year growth as reported and in constant currency.

Total Customer Group subscription revenue was $5.96 billion which represents 12% year-over-year growth, or 11% in constant currency.
Business Professionals & Consumers subscription revenue was $1.72 billion, which represents 15% year-over-year growth, or 14% in constant currency.
Creative & Marketing Professionals subscription revenue was $4.25 billion, which represents 11% year-over-year growth, or 10% in constant currency.

Adobe achieved revenue of $23.77 billion in FY2025, which represents 11% year-over-year growth as reported and in constant currency. Diluted earnings per share was $16.70 on a GAAP basis and $20.94 on a non-GAAP basis.
Total Adobe Annualized Recurring Revenue (“ARR”) exiting the year was $25.20 billion, representing 11.5% year-over-year growth.
GAAP operating income was $8.71 billion and non-GAAP operating income was $10.99 billion. GAAP net income was $7.13 billion and non-GAAP net income was $8.94 billion.
Adobe generated $10.03 billion in operating cash flows during the year.
Adobe repurchased approximately 30.8 million shares during the year.

Digital Media segment revenue was $17.65 billion, which represents 11% year-over-year growth as reported and in constant currency. Digital Media ARR exiting the year was $19.20 billion, representing 11.5% year-over-year growth.
Digital Experience segment revenue was $5.86 billion, representing 9% year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $5.41 billion, representing 11% year-over-year growth as reported and in constant currency.

Total Customer Group subscription revenue was $22.80 billion, which represents 12% year-over-year growth as reported and in constant currency.
Business Professionals & Consumers subscription revenue was $6.50 billion, which represents 15% year-over-year growth as reported and in constant currency.
Creative & Marketing Professional subscription revenue was $16.30 billion, which represents 11% year-over-year growth as reported and in constant currency.