Adobe Revenue for Q2 2023 Rises 10% YoY to Record $4.82 Billion

The News: Adobe revenue reached $4.82 billion for the second quarter of fiscal year 2023, up 10% from $4.4 billion one year ago and setting another quarterly revenue record for the digital creativity and experience software maker. Adobe announced its Q2 earnings on June 15 for the quarter ending June 2, 2023. Read the full Press Release on Adobe’s Q2 earnings on the company’s investors web page.

Adobe Revenue for Q2 2023 Rises 10% YoY to Record $4.82 Billion

Analyst Take: Adobe’s revenue of $4.82 billion for fiscal Q2 revenue continues the company’s impressive sequential streak of eight quarterly earnings records, dating back to Q2 of FY2021 when the company brought in $3.8 billion.

The latest revenue figures are strong results that provide clear evidence that Adobe’s products and business strategy are meeting the needs of the market.

Here are the Adobe Q2 FY2023 earnings results by the numbers:

  • Q2 FY2023 revenue of $4.82 billion, up 10% from $4.4 billion for the same quarter YoY. The $4.82 billion in revenue beat analyst consensus estimates of $4.77 billion for the quarter, according to
  • Q2 FY2023 non-GAAP net income of $1.79 billion, up 13% from $1.59 billion YoY.
  • Q2 FY2023 diluted non-GAAP earnings per share (EPS) of $3.91, up from $3.35 EPS YoY. The EPS results beat analyst consensus estimates of $3.79 per share, according to
  • Q2 FY2023 non-GAAP operating income of $2.18 billion, up 10% from $1.97 billion YoY.
  • Remaining Performance Obligations (RPO) totaled $15.22 billion at the end of the quarter.

Adobe’s Q2 numbers are positive, but we believe there is more to come as the company’s strong generative AI strategy should incrementally drive revenue growth in the future, adding to Adobe’s best-in-class gross margins. And Adobe’s plan to acquire Figma continues to charge ahead, which we believe will close later this year.

The planned $20 billion acquisition of collaborative design platform vendor, Figma, was announced late in 2022 – we see the transaction as a bold move and a big bet on collaborative design that will help to further boost Adobe’s revenue and standing in the lucrative and demanding creative market. When completed, we expect the deal to create many new opportunities for Adobe, once it runs through its course of required regulatory approvals.

We like seeing that Adobe is not standing still in the marketplace and instead is making bold moves to broaden its base and capture new revenue and segments. And Adobe’s solid double-beat for the quarter on revenue and EPS is further evidence of its prowess in these markets, especially given the strong demand for data-driven analytics and digital transformation by enterprise customers around the world.

We believe that these Adobe results are even more positive today due to the challenging macroeconomic conditions that continue to affect many other tech and consumer products companies.

Adobe Revenue Business Segment Performance

By business segment, Adobe’s subscription revenue grew by 11% to $4.5 billion in Q2, up from $4.07 billion YoY. Product revenue for the quarter was $130 million, down 11% from $146 million YoY, while services and other revenue totaled $169 million, down 1% from $170 million YoY.

Adobe Revenue by Product Segment

Adobe revenue in Q2 by product segment also showed good performance.

Digital Media Q2 revenue totaled $3.51 billion, which was up 10% from $3.2 billion YoY. Creative revenue rose 9% to $2.85 billion from $2.6 billion YoY, while Document Cloud revenue hit $659 million, an 11% rise from $562 million YoY. Digital Experience Q2 revenue came in at $1.22 billion, a 12% increase from $1.095 billion YoY.

Adobe also reported net new Digital Media annual recurring revenue (ARR) of $470 million, while its Creative ARR hit $11.64 billion and its Document Cloud ARR rose to $2.5 billion.

Adobe’s Digital Experience subscription revenue hit $1.07 billion, a 12% increase from $961 million YoY.

Adobe Provides Guidance for Q3 FY2023

As part of its Q2 earnings report, Adobe also provided revenue guidance for the third quarter of fiscal 2023.

For Q3 FY2023, Adobe expects total revenue of $4.83 billion to $4.87 billion and non-GAAP EPS of $3.95 to $4.00 per share. The company said it expects Digital Media segment revenue in Q3 of between $3.55 billion to $3.57 billion and Digital Experience segment revenue of $1.21 billion to $1.23 billion. Also expected is Digital Experience subscription revenue of between $1.08 billion to $1.10 billion.

For the full FY2023, Adobe also updated its non-GAAP EPS guidance to $15.65 to $15.75 per share. The company said it expects full fiscal year Digital Media segment revenue of between $14.10 billion to $14.15 billion and FY2023 Digital Experience segment revenue of $4.85 billion to $4.9 billion. Also expected is full FY2023 Digital Experience subscription revenue of between $4.3 billion to $4.35 billion.

Adobe Revenue Q2 Overview

This was clearly another well-executed quarter for Adobe as the company again raised its revenue and EPS totals amid a still-challenging market around the world.

With its broad and successful line of professional creativity products, including Adobe Photoshop, Acrobat Pro, Illustrator, Adobe Express, Lightroom, Dreamweaver, Substance 3D Pro – as well as its Document Cloud and Experience Cloud offerings – Adobe connects daily with a huge number of business professionals and consumers directly and indirectly. This has been the company’s model for success for quite some time and we expect this to continue and flourish.

We also like seeing Adobe’s successes in moving its customers to subscription models with their healthy recurring revenue, which is good for the company and for enterprise customers as they gain reliable ways to always access and work with the latest versions and features of their favorite creative applications.

All these positives continue to come to Adobe under the guidance of chairman and CEO Shantanu Narayen and his talented executive team. We expect this progress to continue for Adobe into the future.

Adobe’s Q2 earnings figures show that this company continues to benefit from long-term secular trends while it continues to meet the product and feature needs of its customers.

We remain bullish about Adobe and look forward to Adobe’s next innovations as it heads into the future.

Daniel Newman and his co-host of The Six Five Webcast, Patrick Moorhead of Moor Insights and Strategy discussed Company earnings in their latest episode. Check it out here and be sure to subscribe to The Six Five Webcast so you never miss an episode.

Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.

Other insights from The Futurum Group:

Firefly, Sensei GenAI Ascendent: Adobe Excels at Generative AI

Generative AI, Core Creative Functionality Integrated into Adobe Express

Adobe Experience Platform Built on Microsoft Azure Unifies Priorities of the CTO and CMO in Order to Drive Business Growth

Author Information

Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.

From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.

A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.

An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.


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