Adobe (ADBE) Q4 2025 earnings summary

Executive summary

• Achieved record FY2025 revenue of $23.77 billion, up 11% year-over-year, with non-GAAP EPS of $20.94, up 14% year-over-year, and GAAP EPS of $16.70, up 24% year-over-year.

• AI-driven innovation accelerated across all product lines, with AI-influenced offerings accounting for over one-third of total ARR and significant user adoption.

• Strategic partnerships and integrations with major AI and cloud providers expanded reach and flexibility for customers.

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

• Delivered record operating cash flows over $10.03 billion in FY2025.

Financial highlights

• Q4 revenue reached $6.19 billion, up 10% year-over-year; Q4 non-GAAP EPS was $5.50, up 14% year-over-year; Q4 GAAP EPS was $4.45, up 17% year-over-year.

• FY2025 operating cash flow exceeded $10.03 billion; nearly $12 billion in share repurchases reduced shares outstanding by over 6%.

• Digital Media revenue for FY2025 was $17.65 billion (+11% YoY); Digital Experience revenue was $5.86 billion (+9% YoY).

• Digital Media ending ARR was $19.2 billion (+11.5% YoY); total Adobe ending ARR reached $25.2 billion (+11.5% YoY).

• RPO at year-end was $22.52 billion (+13% YoY); cash and short-term investments stood at $6.6 billion.

Outlook and guidance

• FY2026 revenue guidance: $25.90–$26.10 billion; ARR growth target of 10.2% (~$2.6 billion net new ARR).

• FY2026 GAAP EPS guidance: $17.90–$18.10; non-GAAP EPS: $23.30–$23.50; non-GAAP operating margin ~45%.

• Q1 FY2026 revenue guidance: $6.25–$6.30 billion; GAAP EPS: $4.55–$4.60; non-GAAP EPS: $5.85–$5.90; non-GAAP operating margin ~47%.

• Semrush acquisition expected to close in 1H FY2026; negligible non-GAAP EPS impact in first year, accretive thereafter; FY2026 guidance excludes Semrush contribution.

• Guidance assumes GAAP tax rate of ~20.5% and non-GAAP tax rate of ~18% for FY2026.