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Adobe (ADBE) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed Jun 25, 2025
Adobe (ADBE) reported revenue of $5.9B for the second quarter fiscal 2025 (Q2 FY25), +11% from a year earlier and +3% from the quarter before. Operating margin was 35.9%, net earnings $1.7B (28.8% of revenue).
Adobe, Q2 FY25: revenue $5.9B (+11% year over year), operating margin 35.9%, net earnings $1.7B, operating cash flow $2.2B. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $5.9B | +3% | +11% |
| Gross profit | $5.2B | +3% | +11% |
| Operating profit | $2.1B | -2% | +12% |
| Net earnings | $1.7B | -7% | +8% |
| Operating cash flow | $2.2B | -12% | +13% |
| Free cash flow | $2.1B | -13% | +13% |
What changed
Revenue was $5.9B in Q2 FY25, up 11% year over year and up 3% from the previous quarter. Subscription was the largest line at 96% of revenue. Subscription added $0.58B year over year (up 11%), 103% of the total change. Product declined 15%.
Gross margin was 89.1%, up 0.4 points from a year earlier. Operating profit was $2.1B, a 35.9% margin (up 0.4 points year over year). Of the extra revenue versus a year earlier, 40% reached operating profit, above the 36% margin then. Operating expenses grew 11% against revenue growth of 11%. The fastest-growing cost line was Sales & marketing (+13%). Net earnings were $1.7B, up 8% year over year. The effective tax rate was 19.5%.
Operating cash flow was $2.2B (up 13% year over year), 130% of net earnings. Non-cash charges added back $0.21B of depreciation and amortization and $0.48B of share-based compensation. Working capital and other items used $0.19B. Capital expenditures of $0.05B left free cash flow of $2.1B.
Questions
What was Adobe's revenue in the second quarter fiscal 2025?
Adobe (ADBE) reported revenue of $5.9B for the second quarter fiscal 2025 (Q2 FY25), +11% from a year earlier and +3% from the quarter before.
Was Adobe profitable in the second quarter fiscal 2025?
Operating profit was $2.1B (35.9% of revenue) and net earnings $1.7B.
Source: Adobe 10-Q on SEC EDGAR.