Adobe Inc. stock research
FY2025 Q2
Adobe (ADBE) Gross Margin — Quarter Ended May 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin remained stable sequentially and improved year-over-year.
Gross margin takeaway
Quarter ended May 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin remained stable sequentially and improved year-over-year.
- The strongest observable margin driver is the sustained high gross margin, which remained unchanged from the prior quarter and improved from a year ago, indicating consistent profitability relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.1%
Gross profit
$5.2B
Revenue
$5.9B
Cost of revenue
$638.0M
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 30, 2024 | $5.4B | $4.9B | $554.0M | 89.8% |
| Nov 29, 2024 | $5.6B | $5.0B | $616.0M | 89.0% |
| Feb 28, 2025 | $5.7B | $5.1B | $622.0M | 89.1% |
| May 30, 2025 | $5.9B | $5.2B | $638.0M | 89.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2025
+0.0 pts
Year-over-year change
May 31, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sustained high gross margin, which remained unchanged from the prior quarter and improved from a year ago, indicating consistent profitability relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Monitor the trend in cost of revenue, which increased both sequentially and year-over-year, to assess its impact on future gross margin.