Adobe (ADBE) risk factors, FY2025 10-K

Adobe's FY2025 10-K, filed Jan 15, 2026, lists 23 risk factors in 4 groups. Against the prior year's 24: 1 dropped, 15 substantially reworded.

Open ADBE in Gloom →
Adobe's chart, financials and news, free in your browser.Open ADBE in Gloom →
Risk factors listed
234 groups
New this year
0vs 24 last year
Dropped
1since the prior 10-K
Substantially reworded
15of those kept
Section length
10k wordsItem 1A

What the changes say

  • Adobe highlights intensifying competition from AI and cloud-native entrants, expanded risks from agentic AI and regulations, and growing supply chain and cloud outages.

What changed since the prior 10-K

Dropped

  • DroppedRisks Related to the Operation of Our Business

    violate our terms of service. While we actively combat such fraudulent activities, we have experienced, and may in the future experience, impacts to our revenue from such activities

Reworded

  • 72% rewrittenRisks Related to the Operation of Our Business

    Security incidents, improper access to or disclosure of our customers’ data or other cybersecurity incidents may harm our reputation and materially and adversely affect our business

    Added risks that third-party open-source software in solutions may contain security vulnerabilities.

  • 72% rewrittenRisks Related to Our Ability to Grow Our Business

    We participate in rapidly evolving and intensely competitive markets, and, if we do not compete effectively, our business and financial results could materially suffer

    Expanded competitive threats to include new entrants, AI, and cloud-native companies.

    Was: We participate in rapidly evolving and intensely competitive markets, and, if we do not compete effectively, our operating results could suffer

  • 64% rewrittenRisks Related to Financial Performance

    Catastrophic events, including events associated with climate change, may disrupt our business and adversely affect our financial condition and results of operations

    Added cloud service provider outages and specific climate events like flooding and water stress.

  • 56% rewrittenRisks Related to Our Ability to Grow Our Business

    Issues relating to the development and use of AI in our solutions may result in reputational harm, liability and adverse business and financial results

    Expanded AI risks to include agentic AI and noted specific U.S. regulations alongside the EU AI Act.

    Was: Issues relating to the development and use of AI, including generative AI, in our offerings may result in reputational harm, liability and adverse financial results

  • 50% rewrittenRisks Related to Our Ability to Grow Our Business

    We may be unsuccessful at innovating in response to rapid technological or industry changes to meet customer needs, which could cause our business and financial results to suffer materially

    Streamlined language regarding commercial success dependencies for new or enhanced solutions.

    Was: We may be unsuccessful at innovating in response to rapid technological or industry changes to meet customer needs, which could cause our operating results to suffer

  • 48% rewrittenRisks Related to Laws and Regulations

    Increasing regulatory focus on privacy and security issues and expanding laws and regulatory requirements could impact our business models and expose us to increased liability

    Noted that data protection and privacy laws are increasing in number and expanding in scope.

  • 39% rewrittenRisks Related to Our Ability to Grow Our Business

    We may not realize the anticipated benefits of acquisitions, investments or other strategic transactions, and they may disrupt our business and adversely affect our business and financial results

    Refined acquisition risks to emphasize obtaining timely financial and strategic benefits.

    Was: We may not realize the anticipated benefits of investments or acquisitions, and they may disrupt our business and divert management’s attention

  • 38% rewrittenRisks Related to Financial Performance

    We are subject to fluctuations in foreign currency exchange rates and may not be able to effectively hedge our exposure

    Added tariffs to geopolitical events and detailed foreign currency hedging mitigation efforts.

  • 35% rewrittenRisks Related to the Operation of Our Business

    Some of our enterprise solutions have extended and complex sales cycles, which may increase our costs and make our sales cycles unpredictable

    Was: Some of our enterprise offerings have extended and complex sales cycles, which may increase our costs and make our sales cycles unpredictable

  • 34% rewrittenRisks Related to the Operation of Our Business

    We face various risks associated with operating as a multinational corporation, and global adverse economic and geopolitical conditions may harm our business and financial condition

    Was: We face various risks associated with our operating as a multinational corporation, and global adverse economic conditions may harm our business and financial condition

  • 28% rewrittenRisks Related to Our Ability to Grow Our Business

    If our reputation or our brands are damaged, our business and financial results may be adversely affected

  • 27% rewrittenRisks Related to Laws and Regulations

    We are, and may in the future become, subject to litigation, regulatory inquiries, investigations and other actions, which could result in an unfavorable outcome and have an adverse effect on our business, financial condition, results of operations and cash flows

    Was: We are, and may in the future become, subject to litigation, regulatory inquiries and other claims, which could result in an unfavorable outcome and have an adverse effect on our business, financial condition, results of operation and cash flows

  • 26% rewrittenRisks Related to Financial Performance

    Our stock price has been volatile and your investment could lose value

    Was: Our stock price may be volatile and your investment could lose value

  • 26% rewrittenRisks Related to Laws and Regulations

    Contracting with government entities exposes us to additional risks inherent in the government procurement process

  • 25% rewrittenRisks Related to the Operation of Our Business

    If we are unable to develop, manage and maintain our sales channels, including our direct sales force, third-party distributors, and sales partners, or third-party relationships upon which we rely for critical business operations, our revenue and business may be adversely affected

    Was: If we are unable to develop, manage and maintain critical third-party relationships, such as our sales, partner and distribution channels, suppliers and service providers, our revenue and business may be adversely affected

All 23 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Ability to Grow Our Business

  1. 01We may be unsuccessful at innovating in response to rapid technological or industry changes to meet customer needs, which could cause our business and financial results to suffer materially50% rewritten
  2. 02We participate in rapidly evolving and intensely competitive markets, and, if we do not compete effectively, our business and financial results could materially suffer72% rewritten
  3. 03Issues relating to the development and use of AI in our solutions may result in reputational harm, liability and adverse business and financial results56% rewritten
  4. 04If our reputation or our brands are damaged, our business and financial results may be adversely affected28% rewritten
  5. 05We may not realize the anticipated benefits of acquisitions, investments or other strategic transactions, and they may disrupt our business and adversely affect our business and financial results39% rewritten

Risks Related to the Operation of Our Business

  1. 06If we are unable to recruit and retain key personnel, our business may be harmed, and our hybrid work model may present challenges, which could adversely impact our business
  2. 07Service interruptions or failures of our information technology systems or those of third parties may impair the availability of our solutions, which may expose us to liability, damage our reputation and harm our future financial results
  3. 08Security incidents, improper access to or disclosure of our customers’ data or other cybersecurity incidents may harm our reputation and materially and adversely affect our business72% rewritten
  4. 09If we are unable to develop, manage and maintain our sales channels, including our direct sales force, third-party distributors, and sales partners, or third-party relationships upon which we rely for critical business operations, our revenue and business may be adversely affected25% rewritten
  5. 10We face various risks associated with operating as a multinational corporation, and global adverse economic and geopolitical conditions may harm our business and financial condition34% rewritten
  6. 11Some of our enterprise solutions have extended and complex sales cycles, which may increase our costs and make our sales cycles unpredictable35% rewritten

Risks Related to Laws and Regulations

  1. 12We are, and may in the future become, subject to litigation, regulatory inquiries, investigations and other actions, which could result in an unfavorable outcome and have an adverse effect on our business, financial condition, results of operations and cash flows27% rewritten
  2. 13We are subject to risks associated with compliance with laws and regulations globally, which may harm our business
  3. 14Increasing regulatory focus on privacy and security issues and expanding laws and regulatory requirements could impact our business models and expose us to increased liability48% rewritten
  4. 15Our intellectual property portfolio is a valuable asset and we may not be able to protect our intellectual property rights, including our source code, from infringement or unauthorized copying, use or disclosure
  5. 16Changes in tax rules and regulations or interpretations thereof may adversely affect our effective tax rates
  6. 17Contracting with government entities exposes us to additional risks inherent in the government procurement process26% rewritten

Risks Related to Financial Performance

  1. 18If there is a change in subscriptions or renewals in a reporting period, this could cause our financial results to suffer and may not be immediately reflected in our revenue and financial results for that period because we recognize revenue over the subscription term
  2. 19We are subject to fluctuations in foreign currency exchange rates and may not be able to effectively hedge our exposure38% rewritten
  3. 20If our goodwill or intangible assets become impaired, then we could be required to record a significant charge to earnings
  4. 21Our existing and future debt obligations may adversely affect our financial condition and future financial results
  5. 22Catastrophic events, including events associated with climate change, may disrupt our business and adversely affect our financial condition and results of operations64% rewritten
  6. 23Our stock price has been volatile and your investment could lose value26% rewritten

Other Adobe 10-Ks

  • FY2024 10-K risk factors
    24 risks

    Adobe faces heavy risks in fast-evolving AI adoption, intense market competition, cybersecurity and data privacy, and complex global regulatory compliance.

    Filed Jan 13, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.