Adobe generated $23.77 billion in revenue in FY2025, which represents 11% year-over-year growth, and set a quarterly record of $6.76 billion in the third quarter of FY2026. Total annualized recurring revenue exiting that quarter was $27.50 billion, and the company employed 31,360 people as of November 28, 2025.
The figures below cover revenue by fiscal year, region and customer group, alongside gross and operating margins, research spending, headcount, attrition and a buyback program large enough to move earnings per share on its own. Every number traces to Adobe’s own quarterly earnings releases, newsroom announcements, and Forms 10-K filed with the U.S. Securities and Exchange Commission.
Key Takeaways
- Subscription revenue reached 96% of total revenue in fiscal 2025, up from 94% in fiscal 2023, which leaves almost no cyclical licence business to cushion a downturn.
- The Americas supplied 59% of fiscal 2025 revenue, with EMEA at 27% and APAC at 14%, a mix that has barely shifted in three years.
- Research and development ran $4,294 million in fiscal 2025, or 18% of total revenue, the same share Adobe has held since fiscal 2023.
- Attrition rose to 9.9% during fiscal 2025 from 7.8% during fiscal 2024, even as headcount grew.
- Shares used to compute diluted earnings per share fell to 395 in Q3 FY2026 from 424 a year earlier, counted in millions, which is why earnings per share outran net income.
- Adobe revalued ending ARR upward by $460 million, from $25.20 billion to $25.66 billion entering FY2026, primarily from foreign exchange rate changes.
- Remaining performance obligations stood at $22.16 billion exiting Q3 FY2026, with current remaining performance obligations at 67%, a forward-booking measure Adobe reports every quarter.
Editor’s Choice
- FY2025 revenue: $23.77 billion.
- Q3 FY2026 revenue: $6.76 billion, up 13% year over year.
- Total Adobe ARR: $27.50 billion exiting Q3 FY2026.
- FY2025 operating cash flow: $10.03 billion.
- Monthly active users: more than 1 billion across creativity and productivity solutions.
- Employees: 31,360 as of November 28, 2025.
- FY2025 net income: $7.13 billion on a GAAP basis.
Adobe Revenue by Fiscal Year
- Adobe’s Form 10-K puts total revenue at $23,769 million in fiscal 2025 from $21,505 million in fiscal 2024 and $19,409 million in fiscal 2023.
- Subscription revenue alone reached $22,904 million in fiscal 2025, a 12% increase over fiscal 2024.
- Perpetual product revenue keeps shrinking, falling to 325 in fiscal 2025 from 460 in fiscal 2023, in millions of dollars.
- Services and other revenue fell to 540 in fiscal 2025 from 598 in fiscal 2024, in millions of dollars.
- Fourth-quarter revenue, per Adobe’s FY2025 earnings release, was $6.19 billion, representing 10% year-over-year growth as reported and in constant currency.
- Through the first nine months of fiscal 2026, Adobe booked $19,776 million in total revenue against $17,575 million in the same period of fiscal 2025.
| Fiscal Year | Total Revenue ($ millions) | Subscription Revenue ($ millions) | Subscription Share |
|---|---|---|---|
| 2023 | 19,409 | 18,284 | 94% |
| 2024 | 21,505 | 20,521 | 95% |
| 2025 | 23,769 | 22,904 | 96% |
Source: Adobe Form 10-K, fiscal 2025
A subscription base that deep trades upgrade-cycle volatility for revenue that only moves when seats or pricing move, the same structural story behind the Microsoft 365 statistics on the productivity side, and the same one running through Adobe’s own subscription revenue history.
Adobe Revenue by Geographic Region
- Americas revenue reached $14,120 million in fiscal 2025, a 10% increase over fiscal 2024.
- EMEA grew fastest at 13%, reaching $6,289 million.
- APAC revenue was $3,360 million, up 10% year over year.
- Outside the United States, the two largest offices are Bangalore and Noida, India, each approximately 0.7 million square feet.
Recent Developments
- September 10, 2026: Adobe reported record third-quarter FY2026 revenue of $6.76 billion and announced a milestone of more than 1 billion monthly active users across creativity and productivity solutions.
- September 2026: Adobe AI-first ARR grew more than 150% year over year.
- June 11, 2026: Second-quarter revenue reached a record $6.62 billion, and AI-first ARR tripled year over year to exceed $500 million.
- June 2026: Adobe expanded its creative agent across Firefly and Creative Cloud apps including Photoshop, Premiere, and Illustrator, with pro-grade tools reaching ChatGPT, Claude, Copilot, Gemini, and Slack.
- April 2026: Adobe completed its acquisition of Semrush Holdings, adding search, generative-engine, and agentic-search optimization to its marketing portfolio.
That generative-AI repositioning is doing real work on the revenue line rather than sitting in a demo reel, and the distribution deals put Adobe tools inside the assistants covered in our Claude vs ChatGPT comparison.
Adobe Annualized Recurring Revenue
- Total Adobe ARR exiting fiscal 2025 was $25.20 billion, representing 11.5% year-over-year growth.
- That figure rose from $22.61 billion as of November 29, 2024, revalued using currency rates determined at the beginning of fiscal 2025.
- ARR reached $27.10 billion exiting Q2 FY2026, including approximately $480 million from Semrush.
- By the Q3 FY2026 close, total ARR was $27.50 billion.
- Digital Media ARR alone was $19.20 billion exiting fiscal 2025, representing 11.5% year-over-year growth.
Worth noting: Adobe revalued ending ARR at the end of FY2025, resulting in a $460 million increase to Total Adobe ARR, from $25.20 billion to $25.66 billion entering FY2026, primarily from foreign exchange rate changes. A further approximately $480 million of Q2 FY2026 ARR came from Semrush. Year-over-year ARR comparisons that skip both adjustments overstate organic growth.
Adobe Revenue by Customer Group
- Total customer-group subscription revenue was $22.80 billion in fiscal 2025, representing 12% year-over-year growth.
- Creative and Marketing Professionals contributed $16.30 billion, up 11% over the prior year.
- Business Professionals and Consumers grew faster at 15%, reaching $6.50 billion.
- In Q3 FY2026, the same two groups delivered $4.65 billion and $1.91 billion respectively, growing 13% and 16% year over year.
- Adobe changed its reporting basis for this fiscal year, stating that beginning in FY2026 its reporting and guidance will focus on customer group subscription revenue and total company ending ARR year-over-year growth, with Digital Media and Digital Experience subscription revenue continuing as supplemental disclosures.
| Customer Group | FY2025 ($ billions) | Q2 FY2026 ($ billions) | Q3 FY2026 ($ billions) |
|---|---|---|---|
| Creative and Marketing Professionals | 16.30 | 4.54 | 4.65 |
| Business Professionals and Consumers | 6.50 | 1.85 | 1.91 |
| Total customer group subscription | 22.80 | 6.39 | 6.56 |
Source: Adobe quarterly results, FY2025 and FY2026
The reporting switch is the single most-missed detail on Adobe data pages. Most still lead with the Digital Media and Digital Experience split, which Adobe no longer guides on. Reading Adobe through segments it has stopped forecasting produces a forecast the company itself does not publish.
Adobe Revenue Share by Region
- The Americas accounted for 59% of fiscal 2025 total revenue, down one point from the prior year.
- EMEA gained a point to reach 27% of total revenue in fiscal 2025.
- APAC held steady at 14% of total revenue across fiscal 2024 and fiscal 2025.
- Three years earlier, the split sat at 60% Americas, 25% EMEA, and 15% APAC in fiscal 2023.
Adobe Revenue by Type
- Subscription revenue was $22,904 million in fiscal 2025, against $20,521 million in fiscal 2024 and $18,284 million in fiscal 2023.
- Services and other revenue fell to 540 from 598 in fiscal 2024 and 665 in fiscal 2023, in millions of dollars.
- Perpetual product revenue has now dropped for two straight years, landing at 325 against 460 in fiscal 2023, in millions of dollars.
- In Q3 FY2026 alone, subscription revenue was $6,582 million of $6,760 million total revenue.
The residual product line is the last of the boxed-software era that made Photoshop a household name. At its current share of revenue, it no longer changes any conclusion about the business.
Adobe Profitability and Margins
- Gross profit in Q3 FY2026 was $5,997 million on $6,760 million of revenue.
- GAAP operating income reached $2.35 billion in Q3 FY2026, with non-GAAP operating income at $2.97 billion.
- GAAP net income was $1.83 billion for the quarter, against non-GAAP net income of $2.42 billion.
- Diluted earnings per share landed at $4.62 on a GAAP basis and $6.13 on a non-GAAP basis.
- Across fiscal 2025, GAAP operating income was $8.71 billion and non-GAAP operating income was $10.99 billion.
- Net income for fiscal 2025 rose 28%, an increase of $1.57 billion compared to fiscal 2024.
| Metric | Q3 FY2025 | Q3 FY2026 |
|---|---|---|
| Total revenue ($ millions) | 5,988 | 6,760 |
| Gross profit ($ millions) | 5,346 | 5,997 |
| Operating income ($ millions) | 2,173 | 2,354 |
| Net income ($ millions) | 1,772 | 1,827 |
| Diluted earnings per share ($) | 4.18 | 4.62 |
Source: Adobe quarterly results, Q3 FY2026
By the numbers: Adobe’s Q3 FY2026 net income rose to $1,827 million from $1,772 million, while diluted earnings per share rose from $4.18 to $4.62. The gap between those two movements is the buyback: the share count used to compute diluted earnings per share fell from 424 to 395, counted in millions.
Adobe Operating Expenses and R&D Spending
- Research and development spending reached $4,294 million in fiscal 2025, a 9% increase over fiscal 2024, holding at 18% of total revenue.
- Sales and marketing remained the largest line at $6,488 million, up 13% and equal to 27% of revenue.
- General and administrative expenses grew 3% to $1.57 billion.
- Total operating expenses were $12,512 million in fiscal 2025 against $12,406 million in fiscal 2024, a year that carried a $1,000 million acquisition termination fee.
- Quarterly R&D is climbing faster than the annual rate suggests, reaching $1,288 million in Q3 FY2026 against $1,088 million a year earlier.
Sales and marketing outspends research by a wide margin, which is unusual for a company whose competitive pressure comes from cheaper design tools rather than from distribution. Figma is the clearest example of that pressure.
Adobe Employee Count and Attrition
- Adobe employed 31,360 people as of November 28, 2025, of which 50% were in the United States, and 50% were in international locations.
- A year earlier, the company employed 30,709 people, with the same 50% United States and 50% international split.
- Total attrition was 9.9% during fiscal 2025, up from 7.8% during fiscal 2024.
- Engagement survey participation reached 78% of employees in fiscal 2025.
- Adobe’s San Jose headquarters occupies approximately 1.7 million square feet of office space.
| Workforce Metric | FY2024 | FY2025 |
|---|---|---|
| Employees | 30,709 | 31,360 |
| Share of employees in the United States | 50% | 50% |
| Share of employees in international locations | 50% | 50% |
| Total attrition rate | 7.8% | 9.9% |
Source: Adobe Forms 10-K, fiscal 2024 and fiscal 2025
Does Adobe have layoffs?
Adobe’s headcount grew year over year rather than shrank, from 30,709 people at the fiscal 2024 close to 31,360 at the fiscal 2025 close. Attrition rose over the same period, so more people left, but Adobe hired past that rate. Adobe’s payroll is a fraction of the Google employee count data we track, which is worth holding in mind before reading its hiring pace as a sector signal.
Adobe Balance Sheet and Cash Position
- Total assets stood at $29,981 million as of August 28, 2026, against $29,496 million at the fiscal 2025 close.
- Goodwill is the single largest asset at $14,037 million, up from $12,857 million.
- Cash and cash equivalents fell to $4,359 million from $5,431 million across the same nine months.
- Deferred revenue, the booked-but-unrecognized balance, was $7,094 million in current liabilities.
- Long-term debt declined to $4,766 million from $6,210 million.
- Treasury stock has now reached $55,619 million at cost, against total stockholders’ equity of $11,764 million.
Adobe Share Buybacks and Diluted Share Count
- Adobe repurchased approximately 30.8 million shares during fiscal 2025.
- Fourth-quarter fiscal 2025 buybacks alone accounted for approximately 7.2 million shares.
- The pace picked up in FY2026, with approximately 8.5 million shares repurchased in Q2 and approximately 9.5 million shares in Q3.
- Diluted share count used for Q3 FY2026 earnings per share was 395, against 424 in Q3 FY2025, both counted in millions.
- Cash spent on repurchases in Q3 FY2026 was $2,232 million, against operating cash flow of $2,523 million in the same quarter.
Why it matters: Adobe spent $2,232 million on share repurchases in Q3 FY2026 against $2,523 million of net cash provided by operating activities. Most of the quarter’s cash generation went back into its own stock, and that is the mechanism holding earnings per share on a double-digit growth path.
Adobe’s FY2026 Financial Targets
- Adobe raised its full-year target for total revenue of $26.576 billion to $26.626 billion.
- Total Adobe ending ARR is targeted to grow 10.2% year over year.
- GAAP earnings per share are targeted at $18.12 to $18.17, with non-GAAP earnings per share at $24.45 to $24.50.
- Those targets assume a non-GAAP operating margin of approximately 45.0% and a diluted share count of approximately 400 million for FY2026.
- The December 2025 guidance Adobe replaced had set FY2026 revenue at $25.90 billion to $26.10 billion.
| FY2026 Target | Range |
|---|---|
| Total revenue | $26.576 billion to $26.626 billion |
| Business Professionals and Consumers subscription revenue | $7.470 billion to $7.490 billion |
| Creative and Marketing Professionals subscription revenue | $18.242 billion to $18.272 billion |
| Total Adobe ending ARR growth | 10.2% year over year |
| GAAP earnings per share | $18.12 to $18.17 |
| Non-GAAP earnings per share | $24.45 to $24.50 |
Source: Adobe quarterly results, Q3 FY2026
Why did Adobe’s net income lag its record revenue in FY2026?
The disclosed numbers point to growth quality rather than growth itself. Revenue set records in Q2 and Q3 of FY2026, but GAAP net income rose only from $1,772 million to $1,827 million year over year in Q3 FY2026, while operating expenses grew from $3,173 million to $3,643 million.
Two further items sit inside the headline figures. Q2 FY2026 GAAP results carried a $0.17 per-share non-cash goodwill impairment charge related to the Publishing and Advertising reporting unit, and approximately $480 million of Q2 ARR came from Semrush rather than organic expansion. Neither is a crisis on its own, and both are the kind of detail a headline ARR number is designed to smooth over.
Who is Adobe’s biggest competitor?
The honest answer here is a list rather than a name. On the creative side, the pressure comes from design tools sold at lower price points, with Canva and Figma the most frequently cited. Adobe’s Creative & Marketing Professional subscription revenue was $16.30 billion during fiscal 2025.
On the marketing and analytics side, the competitive set moved with the April 2026 Semrush acquisition, which added search engine optimization, generative engine optimization, and agentic search optimization to Adobe’s portfolio. Our Canva statistics page tracks the consumer-design side of that contest in more detail.
Conclusion
Adobe closed fiscal 2025 at $23.77 billion in revenue and has since set a quarterly record of $6.76 billion, with total ARR at $27.50 billion and 31,360 people on the payroll. None of the subscription, regional, or research-intensity ratios have moved much in three years. What has moved is the share count, down to 395 from 424 in twelve months, counted in millions. That is doing more for earnings per share than revenue growth is.
The company has raised its full-year revenue target to a range topping out at $26.626 billion, with total ending ARR targeted to grow 10.2% year over year. Whether that holds depends less on creative-tool pricing than on whether the AI products keep converting, a question the broader AI adoption statistics answer better than any single vendor’s quarter can.
