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REVENUE | 12 Months Ended
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Nov. 28, 2025
Revenue [Abstract] |
REVENUE | REVENUE Segment Information We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our Chief Executive Officer, the company’s chief operating decision maker (“CODM”), reviews revenue and gross margin information for each of our segments to assess segment performance and allocate resources. Segment revenue and gross margin information is primarily reviewed by comparing actual results to prior period results. Our CODM does not review individual significant costs within segment cost of revenue to assess performance, and also does not review operating expense or asset information on a segment by segment basis. During fiscal 2025, our business was organized into the following reportable segments: •Digital Media—Our Digital Media segment provides products and services that enable individuals, teams, businesses, and enterprises to create, publish and promote their content anywhere and accelerate their productivity by transforming how they view, share, engage with and collaborate on documents and creative content. Our customers span creative professionals, including graphic designers, photographers, videographers, illustrators and 3D artists; creators, including social media influencers and solopreneurs; business professionals, including social media teams, small business owners and knowledge workers; and consumers. •Digital Experience—Our Digital Experience segment provides marketing professionals with an integrated platform and set of products, services and solutions that enable businesses to create, manage, execute, measure, monetize and optimize customer experiences that span from analytics to commerce. Our customers include marketers, advertisers, brand managers, campaign strategists, merchandisers, merchants, data analysts, developers and executives across the C-suite. •Publishing and Advertising—Our Publishing and Advertising segment contains legacy products and services that address diverse market opportunities, including eLearning solutions, technical document publishing, web conferencing, document and forms platform, web app development, high-end printing and our Adobe Advertising offerings. Our segment results for fiscal 2025, 2024 and 2023 were as follows:
(dollars in millions) | Digital Media |  | Digital Experience |  | Publishing and Advertising |  | Total
Fiscal 2025 |  |  |  |  |  |  |
Revenue | $ | 17,649 |  |  | $ | 5,864 |  |  | $ | 256 |  |  | $ | 23,769 |
Cost of revenue | 841 |  |  | 1,625 |  |  | 85 |  |  | 2,551 |
Gross profit | $ | 16,808 |  |  | $ | 4,239 |  |  | $ | 171 |  |  | $ | 21,218 |
Gross profit as a percentage of revenue | 95 % | % |  | 72 % | % |  | 67 % | % |  | 89 % | %
Fiscal 2024 |  |  |  |  |  |  |
Revenue | $ | 15,864 |  |  | $ | 5,366 |  |  | $ | 275 |  |  | $ | 21,505 |
Cost of revenue | 680 |  |  | 1,589 |  |  | 89 |  |  | 2,358 |
Gross profit | $ | 15,184 |  |  | $ | 3,777 |  |  | $ | 186 |  |  | $ | 19,147 |
Gross profit as a percentage of revenue | 96 % | % |  | 70 % | % |  | 68 % | % |  | 89 % | %
Fiscal 2023 |  |  |  |  |  |  |
Revenue | $ | 14,216 |  |  | $ | 4,893 |  |  | $ | 300 |  |  | $ | 19,409 |
Cost of revenue | 665 |  |  | 1,603 |  |  | 86 |  |  | 2,354 |
Gross profit | $ | 13,551 |  |  | $ | 3,290 |  |  | $ | 214 |  |  | $ | 17,055 |
Gross profit as a percentage of revenue | 95 % | % |  | 67 % | % |  | 71 % | % |  | 88 % | %
See the Consolidated Statements of Income for a reconciliation of consolidated gross profit to consolidated income before income taxes. We generally categorize revenue by geographic area based on where the customer manages their utilization of our offerings. Revenue by geographic area for fiscal 2025, 2024 and 2023 were as follows:
(in millions) |  | 2025 |  | 2024 |  | 2023
Americas: |  |  |  |  |  |
United States |  | $ | 12,529 |  |  | $ | 11,499 |  |  | $ | 10,460 |
Other |  | 1,591 |  |  | 1,392 |  |  | 1,194 |
Total Americas |  | 14,120 |  |  | 12,891 |  |  | 11,654 |
EMEA |  | 6,289 |  |  | 5,554 |  |  | 4,881 |
APAC |  | 3,360 |  |  | 3,060 |  |  | 2,874 |
Revenue |  | $ | 23,769 |  |  | $ | 21,505 |  |  | $ | 19,409 |
Subscription revenue by segment for fiscal 2025, 2024 and 2023 were as follows:
(in millions) |  | 2025 |  | 2024 |  | 2023
Digital Media |  | $ | 17,389 |  |  | $ | 15,547 |  |  | $ | 13,838 |
Digital Experience |  | 5,409 |  |  | 4,864 |  |  | 4,331 |
Publishing and Advertising |  | 106 |  |  | 110 |  |  | 115 |
Total subscription revenue |  | $ | 22,904 |  |  | $ | 20,521 |  |  | $ | 18,284 |
Digital Media and Digital Experience subscription revenue by customer group for fiscal 2025, 2024 and 2023 were as follows:
(in millions) |  | 2025 |  | 2024 |  | 2023
Creative & Marketing Professionals |  | $ | 16,303 |  |  | $ | 14,749 |  |  | $ | 13,425 |
Business Professionals & Consumers |  | 6,495 |  |  | 5,662 |  |  | 4,744 |
Total Digital Media and Digital Experience subscription revenue |  | $ | 22,798 |  |  | $ | 20,411 |  |  | $ | 18,169 |
Contract Balances Trade Receivables A receivable is recorded when an unconditional right to invoice and receive payment exists, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of invoicing to customers. Certain performance obligations may require payment before delivery of the license or service to the customer. Included in trade receivables on the Consolidated Balance Sheets are unbilled receivable balances which have not yet been invoiced, and are typically related to license revenue or services which are delivered prior to invoicing. As of November 28, 2025, the balance of trade receivables, net of allowances for doubtful accounts, was $2.34 billion, inclusive of unbilled receivables of $74 million. As of November 29, 2024, the balance of trade receivables, net of allowances for doubtful accounts, was $2.07 billion, inclusive of unbilled receivables of $66 million. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts which reflects our best estimate of potentially uncollectible trade receivables and is based on both specific and general reserves. We maintain general reserves on a collective basis by considering factors such as historical experience, credit-worthiness, the age of the trade receivable balances, current economic conditions and a reasonable and supportable forecast of future economic conditions. The allowance for doubtful accounts was $13 million and $14 million as of November 28, 2025 and November 29, 2024, respectively. Contract Assets A contract asset is recognized when a conditional right to consideration exists and transfer of control has occurred. Contract assets are typically related to subscription and hosted service contracts where the transaction price allocated to the satisfied performance obligations exceeds the value of billings to date. Contract assets are included in prepaid expenses and other current assets for the current portion and other assets for the long-term portion on the Consolidated Balance Sheets. We regularly review contract asset balances for impairment, considering factors such as historical experience, credit-worthiness, age of the balance, current economic conditions and a reasonable and supportable forecast of future economic conditions. Contract asset impairments were not material in fiscal 2025 and 2024. Contract assets were $241 million and $248 million as of November 28, 2025 and November 29, 2024, respectively. Deferred Revenue and Remaining Performance Obligations Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services, including non-cancellable and non-refundable committed funds and refundable customer deposits. Deferred revenue is recognized as revenue when transfer of control to customers has occurred. Customers are typically invoiced for these agreements in regular installments and revenue is recognized ratably over the contractual subscription period. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, invoice timing, size and new business linearity within the quarter. Deferred revenue does not represent the total contract value of annual or multi-year non-cancellable subscription agreements. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, such as invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and not to receive financing from our customers. Any potential financing fees are considered insignificant in the context of our contracts. As of November 28, 2025, the balance of deferred revenue was $7.03 billion, which includes $80 million of refundable customer deposits. Refundable customer deposits represent arrangements in which the customer has a unilateral cancellation right for which we are obligated to refund amounts paid related to products or services not yet delivered or provided at the time of cancellation on a prorated basis. Arrangements with some of our enterprise customers with non-cancellable and non-refundable committed funds provide options to either renew monthly on-premise term-based licenses or use some or all funds to purchase other Adobe products or services. Non-cancellable and non-refundable committed funds related to these agreements comprised approximately 4% of the total deferred revenue. As of November 29, 2024, the balance of deferred revenue was $6.26 billion. Significant movements in the deferred revenue balance during the period consisted of increases due to payments received prior to transfer of control of the underlying performance obligations to the customer, which were offset by decreases due to revenue recognized in the period. During the year ended November 28, 2025, approximately $6.14 billion of revenue was recognized that was included in the balance of deferred revenue as of November 29, 2024. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to remaining performance obligations is influenced by several factors, including the timing of renewals and average contract term. We applied practical expedients to exclude amounts related to performance obligations that are billed and recognized as they are delivered, optional purchases that do not represent material rights, sales and usage-based royalties not yet consumed and any estimated amounts of variable consideration that are subject to constraint. Remaining performance obligations were approximately $22.52 billion as of November 28, 2025. Non-cancellable and non-refundable committed funds related to some of our enterprise customer agreements referred to in the paragraph above comprised approximately 4% of the total remaining performance obligations. Approximately 65% of the remaining performance obligations, excluding the aforementioned enterprise customer agreements, are expected to be recognized over the next 12 months with the remainder recognized thereafter. Contract Acquisition Costs We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. The costs capitalized are primarily sales commissions paid to our sales force personnel. Capitalized costs may also include portions of fringe benefits and payroll taxes associated with compensation for incremental costs to acquire customer contracts and incentive payments to partners. Capitalized costs to obtain a contract are amortized over the expected period of benefit, which we have determined, based on analysis, to be 5 years. Amortization of capitalized costs are included in sales and marketing expense in our Consolidated Statements of Income. During fiscal 2025, 2024 and 2023, we amortized $282 million, $272 million and $254 million of capitalized contract acquisition costs into sales and marketing expense, respectively. We did not incur any impairment losses for all periods presented. Capitalized contract acquisition costs were $721 million and $717 million as of November 28, 2025 and November 29, 2024, of which $464 million was long-term and included in other assets in the Consolidated Balance Sheets for both periods. The remaining balance of the capitalized costs to obtain contracts was current and included in prepaid expenses and other current assets. Refund Liabilities We record refund liabilities for amounts that may be subject to future refunds, which include sales returns reserves and customer rebates and credits. Refund liabilities are included in accrued expenses and other current liabilities on the Consolidated Balance Sheets. Refund liabilities were $137 million and $141 million as of November 28, 2025 and November 29, 2024, respectively. Significant Customers For all periods presented, there were no customers that represented at least 10% of net revenue or that were responsible for over 10% of our trade receivables.

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