Dan Durn
CFO & EVP - Finance, Technology, Security and Operations at Adobe
Turning to the income statement and balance sheet, Adobe's effective tax rate in Q2 was 19.5% on a GAAP basis and 18.5% on a non GAAP basis. RPO exiting the quarter was $19,690,000,000 growing 10 year over year or 11% in constant currency and CRPO growing 10% year over year as reported and in constant currency. Our cash flows from operations in the quarter were a Q2 record of $2,190,000,000 and ending cash and short term investments exiting Q2 was $5,710,000,000 In Q2, we entered into a share repurchase agreement totaling 3,500,000,000.0 and we currently have $10,900,000,000 remaining of our $25,000,000,000 authorization granted in March 2024. Let me now turn to our financial targets, which assume current macroeconomic conditions. For Q3 FY twenty twenty five, we're targeting total Adobe revenue of 5,875,000,000.000 to $5,925,000,000 Digital Media segment revenue of 4,370,000,000.00 to 4,400,000,000.0 Digital Experience segment revenue of 1,450,000,000.00 to $1,470,000,000 Digital Experience subscription revenue of 1,350,000,000.00 to 1,360,000,000.00 GAAP earnings per share of $4 to $4.05 and non GAAP earnings per share of $5.15 to $5.2 For Q3, we expect non GAAP operating margin of approximately 45.5% and a non GAAP tax rate of approximately 18.5%.