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Feb 28
Adobe Q1 2025 Earnings Report
Adobe achieved record revenue and reaffirmed its FY2025 targets.
Key Takeaways
Adobe reported a record Q1 FY25 with $5.71 billion in revenue, reflecting 10% year-over-year growth. GAAP EPS was $4.14, while non-GAAP EPS stood at $5.08. The company reaffirmed its FY2025 financial targets, highlighting strong performance in Digital Media and Digital Experience segments.
Revenue reached $5.71 billion, a 10% YoY increase.
GAAP net income was $1.81 billion, with non-GAAP net income at $2.22 billion.
Operating cash flow reached $2.48 billion.
Digital Media ARR grew to $17.63 billion, up 12.6% YoY.
Adobe
Adobe
Adobe Revenue by Segment
Revenue by Segment
Digital Media Revenue
CapyFin.comDigital Experience Revenue
CapyFin.com Forward Guidance
Adobe expects continued strong growth, with Q2 FY25 revenue projected between $5.77B and $5.82B, and non-GAAP EPS between $4.95 and $5.00.
Positive Outlook
- Total revenue expected to reach up to $5.82B in Q2 FY25.
- Digital Media segment revenue expected to range from $4.27B to $4.30B.
- Digital Experience segment revenue projected between $1.43B and $1.45B.
- Non-GAAP EPS guidance set between $4.95 and $5.00.
- Company reaffirms FY2025 financial targets, demonstrating confidence in growth.
Challenges Ahead
- Macroeconomic uncertainties may impact demand.
- Foreign currency fluctuations could affect revenue growth.
- Competitive pressures in the digital media and experience markets.
- Rising operational expenses may impact profitability.
- Stock repurchases reduce available capital for strategic investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income