Adobe delivered a solid Q2 2025 with revenue of $5.873 billion, up 10.6% year over year and up 2.8% quarter over quarter, underscoring the durability of its SaaS-based model and the strength of its Digital Media and Digital Experience platforms. Gross profit reached $5.235 billion for a gross margin of 89.1%, reflecting the leverage in a high-value subscription business. Operating income of $2.109 billion produced an operating margin of 35.9%, and net income of $1.691 billion yielded a net margin of 28.8%, while earnings per share stood at $3.95 (diluted). The company generated robust operating cash flow of $2.191 billion and free cash flow of $2.144 billion, supporting meaningful capital allocation, including $3.5 billion in share repurchases. Adobe ends the period with strong liquidity (cash & equivalents of $4.931 billion) and a disciplined balance sheet, though total debt remains meaningful at approximately $6.563 billion with net debt of about $1.632 billion. Put simply, Adobe’s fundamentals remain solid, with a favorable mix shift toward high-margin Digital Media; continued FCF generation supports both organic investment and returning capital to shareholders. In the near term, management’s ability to translate product innovations (including AI-enabled features) into sustained renewals and expanding ARR will be critical to sustaining this growth trajectory and the stock’s valuation premium.