Adobe Inc (NASDAQ:ADBE) raised its full-year revenue and earnings guidance on Thursday after posting record second-quarter results, driven by strong demand for its AI-powered tools across its Creative and Digital Experience platforms.
The software giant forecast fiscal third-quarter revenue between $5.875 billion and $5.925 billion, in line with estimates, and projected adjusted EPS between $5.15 and $5.20, above the $5.10 expected by analysts.
For the full year, Adobe raised its guidance, projecting revenue between $23.5 billion and $23.6 billion, adjusted earnings per share of $20.50 to $20.70, and 11% year-over-year growth in Digital Media annualized recurring revenue—all ahead of Wall Street estimates.
During the second quarter ended June 2025, Adobe reported revenue of $5.87 billion for the quarter, up 11% from a year earlier, marking a new quarterly high.
Adobe’s adjusted earnings per share came in at $5.06, topping Wall Street estimates, while GAAP EPS was $3.94.
Shares of Adobe spiked more than 6% in after-hours trading following the earnings release, before giving back gains Thursday afternoon.
“Our strategy to deliver ground-breaking innovation for Business Professionals and Consumers, and Creative and Marketing Professionals is delighting customers and we are pleased to raise Adobe’s FY25 revenue target,” said CEO Shantanu Narayen. “Adobe’s AI innovation is transforming industries enabling individuals and enterprises to achieve unprecedented levels of creativity.”
Adobe’s Digital Media segment, which includes flagship products like Photoshop and Illustrator, generated $4.35 billion in revenue, up 11% year-over-year. The company said its Digital Media annualized recurring revenue (ARR) reached $18.09 billion, a 12.1% increase from the prior year.
Revenue from its Digital Experience segment, which serves marketing and analytics customers, grew 10% to $1.46 billion, with subscription revenue up 11% year-over-year.