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Adobe (NASDAQ:ADBE) released its second quarter fiscal 2025 financial results post-market on Thursday, which easily surpassed expectations.
The company also increased its guidance due to widespread adoption of its artificial intelligence offerings.
For the quarter ended May 30, the software giant reported adjusted earnings per share of $5.06, which was more than the consensus estimate of $4.97. It reported GAAP EPS of $3.94, which surpassed the estimate of $3.87.
It reported revenue of $5.87B versus the estimate of $5.80B. This represented a year-over-year increase of 11% and marked a record high in quarterly revenue.
Looking ahead, Adobe expects third quarter adjusted EPS ranging from $5.15 to $5.20, which is well above the estimate of $5.11. It projects revenue to range from $5.875B to $5.925B, with a mid-point of $5.9B eclipsing the $5.88B consensus.
And for the entirety of fiscal 2025, Adobe forecasts revenue ranging from $23.5B to $23.6B, which is more than the estimate of $23.45B. It expects adjusted earnings per share to range from $20.50 to $20.70, which is well above the $20.39 estimate.
“As a result of us driving strong performance in the first half of the year, we are pleased to raise Adobe’s FY25 total revenue and EPS targets,” said Dan Durn, Adobe’s executive vice president and CFO. “We continue to invest in AI innovation across our customer groups to enhance value realization and expand the universe of customers we serve.”
Adobe exited the quarter with remaining performance obligations totalling $19.69B. The company also revealed it had repurchased 8.6M shares during the second quarter.
“Adobe’s AI innovation is transforming industries, enabling individuals and enterprises to achieve unprecedented levels of creativity,” said CEO Shantanu Narayen.
Adobe’s Digital Media segment increased 11% year over year to $4.35B, while its Digital Experience segment climbed 10% year over year to $1.46B.