ADBE Q4 2025 Earnings

Call Details

• Call Title: Adobe Q4 2025 Earnings Call
• Date: December 10, 2025 at 10:00 PM UTC
• Management Team:
  • Shantanu Narayen (Chairman and CEO)
  • David Wadhwani (President of Digital Media)
  • Anil Chakravarthy (President of Digital Experience)
  • Dan Dern (Executive Vice President and CFO)
  • Doug Clark (Vice President of Investor Relations)

Call Summary

Financial Performance

• Adobe delivered record FY25 revenue of $23.77 billion, growing 11% year-over-year as reported and in constant currency.
• FY25 non-GAAP EPS was $20.94, which grew 14% year-over-year, and FY25 GAAP EPS was $16.70, which grew 35% year-over-year.
• Adobe generated $10.03 billion of cash flows from operations in FY25 and reported Q4 operating cash flow of $3.16 billion.
• FY25 share repurchases totaled nearly $12 billion and reduced shares outstanding by over 6% during the year, and Adobe repurchased approximately 30.8 million shares in FY25.
• Q4 revenue was $6.19 billion, growing 10% year-over-year as reported and in constant currency, with Q4 non-GAAP EPS of $5.50 and GAAP EPS of $4.45.
• FY25 RPO exited at $22.52 billion, growing 13% year-over-year (12% in constant currency), and CRPO grew 11% as reported (10% in constant currency).

Guidance

• Adobe provided FY26 revenue guidance of $25.9 to $26.1 billion and a total Adobe ending ARR growth target of 10.2% year-over-year, which management said translates to approximately $2.6 billion of ARR growth.
• FY26 non-GAAP EPS guidance is $23.30 to $23.50 and GAAP EPS guidance is $17.90 to $18.10.
• Adobe is targeting FY26 non-GAAP operating margin of approximately 45.0% and a FY26 non-GAAP tax rate of approximately 18.0%.
• Q1 FY26 revenue guidance is $6.25 to $6.3 billion, Q1 non-GAAP EPS guidance is $5.85 to $5.90, and Q1 non-GAAP operating margin is expected to be approximately 47.0%.
• The FY26 targets assume current macroeconomic conditions and exclude any contribution from the pending SEMrush acquisition.
• Adobe stated that the FY26 non-GAAP tax rate guidance is based on a three-year projection and may be adjusted for future changes.