Adobe reported record revenue of $5.87 billion for the second fiscal quarter of 2025, an 11% increase year over year, and up from $5.71 billion in Q1 FY2025.
The growth was driven by strong demand for its core subscription products:
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Creative Cloud, Adobe’s flagship suite for designers, video editors, photographers, and creators, includes apps like Photoshop, Illustrator, and Premiere Pro. Subscriptions to Creative Cloud continued to grow as users embraced AI-powered features such as Firefly, Adobe’s generative AI tool, which has generated over 24 billion assets to date.
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Document Cloud, anchored by Acrobat and Acrobat AI Assistant, enables PDF creation, editing, and collaboration. Adobe reported increased adoption of Acrobat’s AI tools, which enhance productivity for both individual and enterprise subscribers.
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Adobe Express, a simplified design tool aimed at small businesses and marketers, contributed to top-of-funnel acquisition and cross-sell opportunities with Acrobat.
Digital Media revenue reached $4.35 billion, up 11% from the prior year, with annualized recurring revenue (ARR) climbing to $18.09 billion—a 12% year-over-year gain and an increase of $460 million from the previous quarter. Digital Media revenue reflects the combined performance of Adobe’s Creative Cloud and Document Cloud subscription businesses.
The Digital Experience segment, which provides enterprise marketing and analytics solutions through Adobe Experience Cloud, generated $1.46 billion in revenue, also up 10% from the prior year. Subscription revenue for this segment accounted for $1.33 billion of the total.
GAAP earnings per share were $3.94, compared to $3.49 in Q2 FY2024. Non-GAAP earnings per share were $5.06, up from $4.48 in the prior-year period.
Adobe raised its fiscal 2025 guidance to $23.50 billion to $23.60 billion in revenue, with non-GAAP EPS now expected between $20.50 and $20.70.
“Adobe’s strong Q2 results reflect the company’s unwavering focus on delivering exceptional value to customers through our AI-powered platforms and subscription offerings,” said Shantanu Narayen, Adobe chairman and CEO.
INSIDER TAKE
Adobe’s results reinforce several key signals for subscription executives:
✔ AI Enhancements Power Subscription Stickiness
The widespread adoption of Firefly and Acrobat AI Assistant shows how well-integrated AI features can deepen subscriber engagement and encourage upgrades within existing plans.
✔ ARR Growth Signals Healthy Retention and Expansion
The climb in Digital Media ARR to over $18 billion highlights Adobe’s success in driving both retention and upsell among its creative and productivity user base, a model worth studying for subscription leaders in other verticals.
✔ Digital Experience Growth Highlights B2B Subscription Potential
Although Digital Experience growth lags Digital Media, Adobe’s enterprise subscription offerings continue to show steady demand. The challenge remains converting AI-driven innovation into meaningful ARR in this segment.
✔ What to Watch
Adobe’s raised guidance signals confidence in continued subscriber momentum. Subscription executives should watch how Adobe’s tiered product strategy—spanning entry-level tools like Express to enterprise-grade platforms—supports growth and how effectively the company monetizes its AI features relative to usage.