ADBE ADOBE INC.

Overview and Growth

In fiscal 2025, ADOBE INC. recorded $23.77B of revenue, net income of $7.13B, and an operating cash inflow of $10.03B. At $23.77B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 10.5% from $21.50B in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $16.70, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $12.36 in fiscal 2024, the current result was 35.1% higher. Revenue equaled 0.81x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $21.22B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 89.3%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $8.71B, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 36.6%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $7.13B, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 30.0% margin after operating costs and the remaining recognized items. Pretax income was $8.73B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 36.7%, adding a pre-tax profitability layer between revenue and net income. The company recognized $1.60B of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 18.4%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

At period end, the $29.50B asset base was financed through $17.87B of liabilities and $11.62B of equity. Current assets were $10.16B against $10.20B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 1.0x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. Cash and equivalents totaled $5.43B, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 53.2%, excluding receivables and other current assets. Borrowings totaled $6.21B, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 0.53x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 21.1% of total assets, placing borrowing in the context of the company’s full resource base. Relative to total assets, liabilities measured 60.6%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 18.4% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

The company reported $10.03B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.41x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $179.00M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 1.8% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $9.85B of positive free cash flow for the period. The free-cash-flow margin was 41.4%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 33.4%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Nov 28, 2025. Analysis generated Oct 21, 2026.