Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Adobe Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27).
The financial performance presented demonstrates a consistent pattern of growth in revenue and net income over the observed period, although with some shifts in the composition of revenue and expense structures. Subscription revenue has been the primary driver of overall revenue growth, while product revenue has experienced a decline in recent years.
- Revenue Analysis
- Total revenue increased steadily from US$12,868 million in 2020 to US$23,769 million in 2025. The majority of this growth is attributable to the substantial and consistent increase in subscription revenue, rising from US$11,626 million to US$22,904 million. Product revenue, however, decreased from US$507 million in 2020 to US$325 million in 2025, indicating a potential shift in the company’s focus or market dynamics. Services and other revenue remained relatively stable, fluctuating between US$540 million and US$735 million.
- Cost of Revenue and Gross Profit
- Cost of revenue exhibited a consistent upward trend, increasing from US$1,722 million in 2020 to US$2,551 million in 2025. Despite this increase, gross profit also increased significantly, moving from US$11,146 million to US$21,218 million, demonstrating the company’s ability to maintain profitability as revenue grows. The rate of gross profit increase generally outpaced the rate of cost of revenue increase.
- Operating Expenses
- Operating expenses increased substantially throughout the period, rising from US$6,909 million in 2020 to US$12,512 million in 2025. This increase was primarily driven by significant growth in sales and marketing expenses, which more than doubled from US$3,591 million to US$6,488 million. Research and development expenses also increased considerably, from US$2,188 million to US$4,294 million. A notable increase in operating expenses occurred between 2023 and 2024, including a US$1,000 million acquisition termination fee in 2024.
- Operating and Net Income
- Operating income demonstrated growth, increasing from US$4,237 million in 2020 to US$8,706 million in 2025, despite the substantial increase in operating expenses. Net income followed a similar trend, increasing from US$5,260 million in 2020 to US$7,130 million in 2025, although it experienced a slight dip in 2021. Fluctuations in the provision for income taxes significantly impacted net income, with a large benefit recorded in 2021 and substantial provisions in subsequent years.
- Non-Operating Items
- Non-operating income (expense) exhibited volatility. Interest income increased significantly, particularly in 2023 and 2024, while interest expense also increased over the period. Unrealized investment gains (losses) fluctuated, with a significant loss recorded in 2022 and gains in 2024 and 2025. Other income, net, also showed a substantial increase in 2023 and 2024.
Overall, the financial performance indicates a successful transition towards a subscription-based revenue model and continued growth in profitability, despite increasing operating expenses and fluctuating non-operating items. The company appears to be investing heavily in research and development and sales and marketing to sustain its growth trajectory.