10-KPeriod: FY2025

ADOBE INC. Annual Report, Year Ended Nov 28, 2025

Filed January 15, 2026For Securities:ADBE

Summary

Adobe Inc. (ADBE) demonstrated robust performance in fiscal year 2025, marked by significant growth in both its Digital Media and Digital Experience segments. The company achieved a total Annualized Recurring Revenue (ARR) of $25.20 billion, an 11.5% increase year-over-year, underscoring sustained demand for its subscription-based offerings. Digital Media ARR reached $19.20 billion, reflecting strong performance in Creative Cloud and Acrobat solutions, while Digital Experience revenue grew 9% year-over-year to $5.86 billion, driven by solutions like GenStudio and Adobe Experience Platform. Strategic investments in AI, particularly through its Firefly generative AI models and Acrobat AI Assistant, are central to Adobe's growth narrative, enhancing creativity and productivity across its product portfolio. The company continues to focus on a customer-centric strategy, integrating its creative and marketing solutions to offer end-to-end workflows. Despite ongoing macroeconomic uncertainties and competitive pressures, Adobe's diversified revenue streams, strong cash flow generation of $10.03 billion from operations, and disciplined capital allocation, including significant stock repurchases, position it well for continued expansion. The company also announced a pending acquisition of Semrush Holdings, Inc. for approximately $1.9 billion, signaling a commitment to strategic growth.

Financial Highlights

56 data points
Beta

Revenue

$23.77B

89.3% Gross Margin

Net Income

$7.13B

30.0% Net Margin

EPS (Diluted)

$16.70

Total Assets

$29.50B

Cash & Equivalents

$5.43B

Free Cash Flow

$9.85B

Financial Statements
Beta
Revenue$23.77B
Cost of Revenue$2.55B
Gross Profit$21.22B
Operating Expenses$12.51B
Operating Income$8.71B
Net Income$7.13B
EPS (Basic)$16.73
EPS (Diluted)$16.70
Shares Outstanding (Basic)426.20M
Shares Outstanding (Diluted)427.00M

Key Highlights

  • 1Total Annualized Recurring Revenue (ARR) grew 11.5% year-over-year to $25.20 billion, indicating strong subscription-based revenue.
  • 2Digital Media segment revenue increased 11% to $17.65 billion, driven by Creative Cloud and Acrobat.
  • 3Digital Experience segment revenue grew 9% to $5.86 billion, fueled by GenStudio and Adobe Experience Platform.
  • 4Net income increased by 28% year-over-year to $7.13 billion.
  • 5Cash flow from operations rose 25% to $10.03 billion.
  • 6Adobe continues to heavily invest in AI, integrating Firefly generative AI models across its product suite.
  • 7The company announced its intention to acquire Semrush Holdings, Inc. for approximately $1.9 billion, subject to closing conditions.

Frequently Asked Questions

Adobe's primary growth driver is its subscription-based software model, particularly its Digital Media (Creative Cloud, Acrobat) and Digital Experience (marketing solutions) offerings. The company is heavily investing in and integrating Artificial Intelligence (AI) capabilities, such as its Firefly generative AI models and Acrobat AI Assistant, to enhance product value and drive new customer acquisition and retention.

Adobe operates in highly competitive markets and addresses this by focusing on continuous innovation, integrating AI across its portfolio, and offering end-to-end solutions that span the content lifecycle from ideation to activation. The company emphasizes its commercially safe AI models, differentiated platforms, and a strong partner ecosystem to maintain its competitive edge.

Adobe's AI strategy is to harness AI to amplify human creativity and productivity. This involves infusing AI across its applications, embedding purpose-built AI agents, offering a choice of AI models (including its own Firefly models and partner models), and leveraging its unique data assets. The goal is to deliver comprehensive, easy-to-use AI-powered solutions for its customers.

Key financial highlights include an 11.5% increase in Total ARR to $25.20 billion, an 11% revenue growth in Digital Media to $17.65 billion, and a 9% revenue growth in Digital Experience to $5.86 billion. Net income saw a significant increase of 28% to $7.13 billion, and cash flow from operations grew by 25% to $10.03 billion.