Q1 25 EPS
$5.08
BEAT +2.17%
Est. $4.97
Q1 25 Revenue
$5.71B
BEAT +0.93%
Est. $5.66B
vs S&P Since Q1 25
-71.1%
TRAILING MARKET
ADBE -40.4% vs S&P +30.7%
Market Reaction
Did ADBE Beat Earnings? Q1 2025 Results
Adobe opened fiscal 2025 on a strong note, posting first-quarter revenue of $5.71 billion and non-GAAP diluted EPS of $5.08, clearing the $4.97 consensus estimate by 2.17% and topping revenue expectations by 0.93%, as the company's AI-first product s… Read more Adobe opened fiscal 2025 on a strong note, posting first-quarter revenue of $5.71 billion and non-GAAP diluted EPS of $5.08, clearing the $4.97 consensus estimate by 2.17% and topping revenue expectations by 0.93%, as the company's AI-first product strategy begins to show measurable commercial results. The single most telling data point: Adobe's AI-powered offerings exited the quarter with over $125 million in ending ARR book of business, underpinning 10% year-over-year revenue growth and a record $2.48 billion in operating cash flow. The Digital Media segment led the way with $4.23 billion in revenue and Digital Media ARR growing 12.6% year-over-year to $17.63 billion, while the Digital Experience segment added $1.41 billion. Despite some retail investor caution around guidance, Adobe held firm on its full-year targets of $23.30 billion to $23.55 billion in revenue and non-GAAP EPS of $20.20 to $20.50, with Q2 revenue guided to $5.77 billion to $5.82 billion.
Key Takeaways
- • AI-first standalone and add-on product innovations driving new ARR
- • Digital Media ARR growth of 12.6% year-over-year to $17.63 billion
- • Business Professionals and Consumers subscription revenue growing 15% year-over-year
- • 11% constant currency growth in Digital Media revenue
- • Diversified go-to-market strategy
- • Absence of Figma acquisition termination fee that impacted year-ago quarter
ADBE YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
ADBE Revenue by Segment
With YoY comparisons, source: SEC Filings
“Adobe's success over the next decade will be driven by customer-focused innovation and new offerings for creators, marketing professionals, business professionals and consumers.”
— Shantanu Narayen, Q1 2025 Earnings Press Release
ADBE Earnings Trends
ADBE vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ADBE EPS Trend
Earnings per share: estimate vs actual
ADBE Revenue Trend
Quarterly revenue: estimate vs actual
ADBE Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $6.06 | — | $6.40B | +1.93% |
| Q4 25 BEAT FY | $4.28 | $5.50 | +28.50% | $6.19B | — |
| FY Full Year | $20.80 | $20.94 | +0.67% | $23.77B | +0.33% |
| Q3 25 BEAT | $5.18 | $5.31 | +2.48% | $5.99B | +1.34% |
| Q2 25 BEAT | $4.97 | $5.06 | +1.74% | $5.87B | +1.29% |
| Q1 25 BEAT | $4.97 | $5.08 | +2.17% | $5.71B | +0.93% |