Adobe (NASDAQ: ADBE) posts record Q2 2026 results and raises full-year guidance
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Adobe Inc. reported record second quarter FY2026 revenue of $6.62 billion, up 13% year over year (11% in constant currency), driven mainly by subscription revenue. GAAP diluted EPS was $4.25, while non-GAAP diluted EPS was $5.96, reflecting adjustments for stock-based compensation, goodwill impairment and other items.
Total annualized recurring revenue reached $27.10 billion, and operating cash flow was $2.17 billion. The company raised its FY2026 targets, guiding total revenue to $26.50–$26.60 billion and non-GAAP EPS to $24.35–$24.45. Adobe also announced that CFO Daniel Durn will resign effective June 15, 2026, with Steven Day appointed as interim CFO.
Positive
- Record Q2 performance and raised outlook: Revenue reached $6.62 billion, up 13% year over year, with non-GAAP EPS of $5.96, and Adobe raised FY2026 revenue guidance to $26.50–$26.60 billion and non-GAAP EPS guidance to $24.35–$24.45, signaling stronger expected growth.
- Strong recurring and AI-related metrics: Total annualized recurring revenue rose to $27.10 billion and AI-first ARR more than tripled year over year to exceed $500 million, supporting visibility into future subscription-driven growth.
Negative
- CFO departure introduces leadership transition: Chief Financial Officer Daniel Durn will resign effective June 15, 2026, with Steven Day appointed interim CFO, creating a period of change in a critical executive role.
- Goodwill impairment and legal contingency impact GAAP results: Q2 GAAP earnings reflected a non-cash $70 million goodwill impairment related to the Publishing & Advertising reporting unit and a loss contingency, highlighting pressure in specific areas.
Insights
Record growth and higher 2026 guidance offset a planned CFO transition.
Adobe delivered Q2 FY2026 revenue of $6.62 billion, up 13% year over year, and non-GAAP EPS of $5.96. Subscription revenue and AI-first offerings underpin total ARR of $27.10 billion, including contributions from the Semrush acquisition.
Management raised FY2026 targets to total revenue of $26.50–$26.60 billion and non-GAAP EPS of $24.35–$24.45, implying continued double-digit growth with a non-GAAP operating margin target near 45.0%. These targets incorporate current macro assumptions and Semrush.
The quarter included a non-cash goodwill impairment of $70 million tied to the Publishing & Advertising reporting unit and a previously disclosed loss contingency. CFO Daniel Durn will depart on June 15, 2026, with long-time finance leader Steven Day stepping in as interim CFO. Subsequent filings may provide more detail on execution versus this updated FY2026 outlook.
8-K Event Classification
3 items: 2.02, 5.02, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 FY2026 revenue: $6.62 billion
Q2 FY2026 GAAP diluted EPS: $4.25
Q2 FY2026 non-GAAP diluted EPS: $5.96
+5 more
8 metrics
Q2 FY2026 revenue
$6.62 billion
Record second quarter FY2026 revenue, 13% year-over-year growth
Q2 FY2026 GAAP diluted EPS
$4.25
Earnings per share including $0.17 goodwill impairment charge
Q2 FY2026 non-GAAP diluted EPS
$5.96
Earnings per share excluding specified non-GAAP adjustments
Total ARR exiting Q2 FY2026
$27.10 billion
Annualized recurring revenue, including ~$480 million from Semrush
Operating cash flow Q2 FY2026
$2.17 billion
Net cash provided by operating activities in the quarter
FY2026 total revenue guidance
$26.50–$26.60 billion
Updated full-year 2026 revenue target range
FY2026 non-GAAP EPS guidance
$24.35–$24.45
Updated full-year 2026 non-GAAP diluted EPS target range
Goodwill impairment charge
$70 million
Non-cash impairment related to Publishing & Advertising reporting unit in Q2 FY2026
Key Terms
Annualized Recurring Revenue, Remaining Performance Obligations, non-GAAP operating margin, goodwill impairment, +2 more
6 terms
Annualized Recurring Revenue financial
"Total Adobe Annualized Recurring Revenue (“ARR”) exiting the quarter was $27.10 billion"
Annualized recurring revenue is the predictable income a business expects to earn over a year from ongoing customer subscriptions or contracts. It’s similar to estimating how much money you would make in a year if your current monthly income stayed the same. Investors use this figure to assess the stability and growth potential of a company's revenue stream.
Remaining Performance Obligations financial
"Remaining Performance Obligations (“RPO”) were $22.27 billion, and Current Remaining Performance Obligations"
Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.
non-GAAP operating margin financial
"Targets assume non-GAAP operating margin of ~44.0%, GAAP tax rate of ~23.0%"
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
goodwill impairment financial
"GAAP results reflect a $0.17 per share non-cash goodwill impairment charge related to the Publishing & Advertising reporting unit"
Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.
loss contingency financial
"Loss contingency (*) 30 — 62"
A loss contingency is a potential future cost a company might have to pay because of events such as lawsuits, product claims, environmental cleanups or unresolved tax disputes. Investors care because these risks can reduce future cash, profits and company value; when a loss is likely and can be reasonably estimated, companies must set aside money or disclose it, much like spotting a dark cloud that might turn into a storm and planning accordingly.
stock-based compensation financial
"Stock-based compensation expense consists of charges for employee restricted stock units, performance shares and employee stock purchases"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
Earnings Snapshot
Revenue: $6.62 billion · Guidance included
Q2 FY2026
Revenue
$6.62 billion
+13% YoY
GAAP diluted EPS
$4.25
Non-GAAP diluted EPS
$5.96
Total ARR
$27.10 billion
Total Adobe ending ARR growth 10.2% year over year
Guidance
For FY2026, Adobe targets total revenue of $26.50–$26.60 billion and non-GAAP diluted EPS of $24.35–$24.45, with a non-GAAP operating margin of about 45.0%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 8, 2026
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (408 ) 536-6000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On June 11, 2026, Adobe Inc. (“Adobe”) issued a press release announcing financial results for its second quarter fiscal year 2026 ended May 29, 2026. A copy of this press release is furnished and attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this report and the exhibit attached hereto are being furnished and shall not be deemed filed for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly stated by specific reference in such filing.
The attached press release includes non-GAAP adjusted or constant currency revenue growth rates, non-GAAP operating income, non-GAAP net income, non-GAAP diluted net income per share (earnings per share), non-GAAP operating margin and non-GAAP tax rate.
These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Therefore, management uses both GAAP and non-GAAP financial measures when evaluating business performance and making financial and operating decisions.
In conjunction with the GAAP financial measures, we use non-GAAP financial measures in making operating decisions because we believe the measures provide meaningful supplemental information regarding our operational performance and additional consideration for how we should invest in research and development and fund infrastructure and go-to-market strategies. We use these measures to help us make budgeting decisions, for example, as between product development expenses and research and development, sales and marketing and general and administrative expenses and to facilitate our internal comparisons to our historical operating results. In addition, we believe these non-GAAP financial measures may be useful because they allow for greater transparency with respect to certain key metrics used by management in its financial and operational decision making. This allows institutional investors, the analyst community and others to better understand and evaluate our operating results and future prospects in the same manner as management and to compare operating results across accounting periods and to those of our peer companies.
We include adjusted or constant currency revenue growth rates to provide a framework for assessing how our underlying businesses have performed or are expected to perform on a year-over-year basis, excluding the effects of foreign currency rate fluctuations and the impact of our 52/53-week fiscal year, if applicable. Adjusted or constant currency revenue growth rates are calculated in constant currency by converting non-United States Dollar revenue using comparative period exchange rates and determining the change from prior period reported revenue, adjusted for any hedging effects.
In addition, we use non-GAAP financial measures which exclude:
A. Stock-based and deferred compensation expenses. Stock-based compensation expense consists of charges for employee restricted stock units, performance shares and employee stock purchases in accordance with current GAAP including stock-based compensation expense associated with any unvested options and restricted stock units assumed in connection with our acquisitions. We believe that it is useful to investors to understand the impact of the application of accounting standards pertaining to stock-based compensation to our operational performance, liquidity and our ability to invest in research and development and fund acquisitions and capital expenditures. Deferred compensation expense consists of charges associated with movements in our deferred compensation plan liability. Although stock-based compensation and deferred compensation expenses constitute ongoing and recurring expenses, such expenses are excluded from non-GAAP results because they are not expenses that typically require current cash settlement by us and because such expenses are not used by us to assess the core profitability of our business operations. We further believe these measures are useful to investors in that they allow for greater transparency to certain line items in our financial statements. In addition, excluding these items from various non-GAAP measures facilitates comparisons to our competitors’ operating results.
B. Amortization of intangibles. We recognize amortization expense of intangibles in connection with our acquisitions. Intangibles include (i) purchased technology, (ii) trademarks, (iii) customer contracts and relationships and (iv) other intangible assets. In accordance with GAAP, we amortize the fair value of the intangibles based on the pattern in which we expect the economic benefits of the intangibles will be consumed as revenue is generated. Although the intangibles generate revenue for us, we exclude this item because the expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance, liquidity and our ability to invest in research and development, fund acquisitions and capital expenditures. In addition, excluding this item
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from various non-GAAP measures facilitates our internal comparisons to our historical operating results and comparisons to our competitors’ operating results.
C. Acquisition-related expenses. We exclude certain acquisition-related expenses, including deal costs and certain professional fees, associated with significant acquisitions. Acquisition-related expenses are inconsistent in amount and are significantly impacted by the timing and nature of each transaction. Therefore, although we have in the past and may in the future continue to incur these types of expenses in connection with acquisitions, such expenses are excluded from our non-GAAP financial measures because these expenses are not used by us to assess the core profitability of our business operations. Consequently, we believe the non-GAAP financial measures excluding these expenses facilitate more meaningful evaluation of the core profitability of our business operations and comparisons to our historical operating results, and allow for greater transparency to certain line items in our financial statements.
D. Investment gains and losses. We recognize investment gains and losses principally from realized gains or losses from the sale and exchange of marketable equity investments, fair value adjustments and impairments to non-marketable equity securities, unrealized holding gains and losses associated with our deferred compensation plan assets and marketable equity securities, gains and losses on the sale of equity securities held indirectly through investment partnerships and gains and losses associated with the recording of equity or non-marketable investments to fair value upon obtaining control through a business combination, as required by GAAP. We do not actively trade publicly held securities nor do we rely on these securities positions for funding our ongoing operations. We exclude investment gains and losses on these equity securities because these items are unrelated to our ongoing business and operating results.
E. Impairment of goodwill. Goodwill is assigned to one or more reporting units on the date of acquisition. We review our goodwill for impairment annually during our second quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount. If the fair value of a reporting unit is determined to be less than its carrying value, a goodwill impairment charge is recorded. We exclude the impact of such charges because they are non-recurring and non-cash in nature, and we believe the non-GAAP financial measures excluding these expenses facilitate comparisons to our historical operating results.
F. Accrued loss contingencies associated with significant legal events. In connection with ongoing litigation or similar events, we accrue losses in the event such losses are determined to be both probable and estimable under Accounting Standards Codification (ASC) 450-20, Loss Contingencies, although such litigation may be under appeal. As new facts and circumstances arise, we adjust the accrual accordingly. We exclude the impact of such loss contingencies when they relate to significant events that are unrelated to our ongoing business and operating results.
G. Lease-related asset impairments and other charges. We exclude charges associated with significant facilities optimization efforts, including costs related to the impairment, abandonment or early termination of office spaces under operating leases. We exclude the impact of such charges because they are unrelated to our ongoing business and operating results.
H. Income tax adjustments. In determining our non-GAAP provision for income taxes, which can differ significantly from our GAAP provision for income taxes, we apply a fixed long-term projected non-GAAP tax rate that excludes certain significant, non-recurring and period-specific income tax effects, such as changes in judgment or estimates of tax matters related to prior years, changes in tax laws, and changes to our business structure including impacts from business combinations. The application of a fixed long-term non-GAAP tax rate helps us assess the core profitability of our business operations and compare to our historical operating results. In arriving at the long-term non-GAAP tax rate used in fiscal 2026, we evaluated projections and currently available information for fiscal 2026 through 2028. The projected long-term non-GAAP tax rate could be subject to change for several reasons, including significant changes in our geographic earnings mix or in application of tax laws in major jurisdictions in which we operate. As such, we periodically re-evaluate the appropriateness of the long-term non-GAAP tax rate and may adjust for significant changes.
I. Income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Excluding the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to our ongoing operations.
We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our financial results as determined in accordance with GAAP and that these measures should only be used to evaluate our financial results in conjunction with the corresponding GAAP measures; therefore we qualify the use of non-GAAP financial information in a statement when non-GAAP information is presented.
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Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 8, 2026, Daniel Durn notified the Company of his decision to resign as Chief Financial Officer and Executive Vice President, Finance, Technology, Security and Operations, effective June 15, 2026.
On June 11, 2026, Steven Day was appointed to serve as the Company’s interim Chief Financial Officer, effective immediately upon Mr. Durn’s departure. Mr. Day, age 58, joined the Company in 2006 and has served as the Company’s SVP, Customer Experience Orchestration Business Unit CFO and Corporate Finance since 2023. Prior to that, Mr. Day served as VP, Digital Experience Business Unit CFO from 2021 to 2023, and as VP, Corporate Finance from 2020 to 2021. In addition, he previously served as Interim Head of Investor Relations from October 2024 to June 2025.
The selection of Mr. Day to serve as the interim Chief Financial Officer was not pursuant to any arrangement or understanding with respect to any other person. There are no family relationships between Mr. Day and any director or executive officer of the Company, and there are no transactions between Mr. Day and the Company that would be required to be reported under Item 404(a) of Regulation S-K.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Exhibit Description | |||||||
| 99.1 | Press release issued on June 11, 2026 entitled “Adobe Reports Record Q2 Results” | |||||||
| 104 | Cover Page Interactive Data File (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ADOBE INC. | ||||||||
| By: | /s/ DANIEL DURN | |||||||
| Daniel Durn | ||||||||
Chief Financial Officer and Executive Vice President, Finance, Technology, Security and Operations | ||||||||
Date: June 11, 2026
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Exhibit 99.1
Investor Relations Contact
Doug Clark
Adobe
ir@adobe.com
Public Relations Contact
Ashley Levine
Adobe
adobepr@adobe.com
FOR IMMEDIATE RELEASE
Adobe Reports Record Q2 Results
•Adobe Raises FY26 Total Revenue and Non-GAAP EPS Targets
•AI-first ARR triples year over year and exceeds $500 million
SAN JOSE, Calif. – June 11, 2026 – Adobe (Nasdaq:ADBE), the global technology leader that unleashes creativity and productivity for individuals and businesses through innovative platforms and tools, today reported financial results for its second quarter FY2026 ended May 29, 2026.
“Adobe delivered record revenue of $6.62 billion in Q2 reflecting strong AI-driven demand across our customer groups and we are raising our full-year fiscal 2026 revenue and non-GAAP EPS targets on the strength of that performance,” said Shantanu Narayen, chair and CEO, Adobe. “We are inspired to bring the magic of our new AI products to consumers, business professionals, creators, and marketers to deliver on our mission to Empower Everyone to Create.”
Second Quarter FY2026 Financial Highlights
•Adobe achieved record revenue of $6.62 billion in its second quarter of FY2026, which represents 13% year-over-year growth, or 11% in constant currency.
•Diluted earnings per share was $4.25 on a GAAP basis and $5.96 on a non-GAAP basis. GAAP results reflect a $0.17 per share non-cash goodwill impairment charge related to the Publishing & Advertising reporting unit.
•Total Adobe Annualized Recurring Revenue (“ARR”) exiting the quarter was $27.10 billion, including approximately $480 million from Semrush.
•GAAP operating income in the second quarter was $2.24 billion and non-GAAP operating income was $2.95 billion. GAAP net income was $1.71 billion and non-GAAP net income was $2.40 billion.
•Cash flows from operations were $2.17 billion.
•Exiting the quarter, Remaining Performance Obligations (“RPO”) were $22.27 billion, and Current Remaining Performance Obligations (“cRPO”) were 67%.
•Adobe repurchased approximately 8.5 million shares during the quarter.
Second Quarter FY2026 Customer Group Highlights
•Total Customer Group subscription revenue was $6.39 billion, which represents 14% year-over-year growth, or 12% in constant currency, including approximately $40 million from Semrush.
•Business Professionals & Consumers subscription revenue was $1.85 billion, which represents 16% year-over-year growth, or 15% in constant currency.
•Creative & Marketing Professionals subscription revenue was $4.54 billion, which represents 13% year-over-year growth, or 11% in constant currency.
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Financial Targets
These targets factor in the acquisition of Semrush Holdings, Inc. and assume current macroeconomic conditions.
The following table summarizes Adobe’s third quarter FY2026 targets:
| Total revenue | $6.67 billion to $6.72 billion | |||||||
| Business Professionals & Consumers subscription revenue | $1.87 billion to $1.89 billion | |||||||
| Creative & Marketing Professionals subscription revenue | $4.61 billion to $4.64 billion | |||||||
Earnings per share1 | GAAP: $4.40 to $4.45 | Non-GAAP: $6.05 to $6.10 | ||||||
1Targets assume non-GAAP operating margin of ~44.0%, GAAP tax rate of ~23.0%, non-GAAP tax rate of ~18.0% and diluted share count of ~395 million for third quarter FY2026.
The following table summarizes Adobe’s updated FY2026 targets:
| Total revenue | $26.50 billion to $26.60 billion | |||||||
| Business Professionals & Consumers subscription revenue | $7.44 billion to $7.48 billion | |||||||
| Creative & Marketing Professionals subscription revenue | $18.21 billion to $18.27 billion | |||||||
| Total Adobe ending ARR growth | 10.2% year over year | |||||||
Earnings per share2 | GAAP: $17.90 to $18.00 | Non-GAAP: $24.35 to $24.45 | ||||||
2Targets assume non-GAAP operating margin of ~45.0%, GAAP tax rate of ~22.5%, non-GAAP tax rate of ~18.0% and diluted share count of ~399 million for FY2026.
Adobe CFO Update
Dan Durn, executive vice president and CFO of Adobe, is departing the company on June 15, 2026 to pursue a new professional opportunity. Steve Day, SVP of Corporate Finance and CFO of Adobe’s Customer Experience Orchestration Business Unit, will serve as interim Chief Financial Officer, effective June 15, 2026. Mr. Day brings 20 years of financial leadership experience at Adobe to the Interim Chief Financial Officer role. Day will report directly to CEO and Chair Shantanu Narayen.
“I want to thank Dan for leading the finance organization that will support Adobe's next chapter of growth in the AI era, and wish him all the best,” said Narayen. “Steve has been a key member of our finance organization for two decades, and his deep understanding of Adobe’s business will be critical as we execute our strategy to deliver AI innovations to a broader set of customers across creativity, productivity and customer experience orchestration.”
Adobe to Host Conference Call
Adobe will webcast its second quarter fiscal year 2026 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website: http://www.adobe.com/ADBE. Earnings documents, including Adobe management’s prepared conference call remarks with slides and an investor datasheet are posted to Adobe’s Investor Relations Website in advance of the conference call for reference.
Forward-Looking Statements, Non-GAAP and Other Disclosures
In addition to historical information, this press release contains “forward-looking statements” within the meaning of applicable securities laws, including statements related to our product development plans and new or enhanced offerings; our business, strategy, artificial intelligence (“AI”) and innovation momentum; our market and AI opportunity and future growth; market and AI trends; macroeconomic conditions; fluctuations in foreign currency exchange rates; strategic investments; customer success and groups; industry positioning; expectations regarding acquisitions and other business transactions; and our financial targets and assumptions related thereto, including revenue, operating margin, operating efficiencies, annualized recurring revenue, tax rate, earnings per share and share count. Each of the forward-looking statements we make in this press release involves risks, uncertainties and assumptions based on information available to us as of the date of this press release. Such risks and uncertainties, many of which relate to matters beyond our control, could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: failure to innovate effectively and meet customer needs; failure to compete effectively; issues relating to development and use of AI; damage to our reputation or brands; failure to realize the anticipated benefits of acquisitions, investments or other strategic transactions; failure to recruit and retain key personnel; service interruptions or failures in information technology systems by us or third parties; security incidents; failure to effectively develop, manage and maintain our sales channels or critical third-party business relationships; risks associated with being a multinational corporation and adverse macroeconomic and geopolitical conditions; complex sales cycles; litigation, regulatory inquiries, investigations and other actions; changes in, and compliance with, global laws and regulations, including those related to information security and privacy; failure to protect our intellectual property; changes in tax regulations; complex government procurement processes; risks related to fluctuations in or the timing of revenue recognition from our subscription offerings; fluctuations in foreign currency exchange rates;
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impairment charges; our existing and future debt obligations; catastrophic events; and fluctuations in our stock price. Further information on these and other factors are discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and Adobe's most recently filed Quarterly Reports on Form 10-Q. The risks described in this press release and in Adobe’s filings with the U.S. Securities and Exchange Commission should be carefully reviewed.
Undue reliance should not be placed on the financial information set forth in this press release, which reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for our fiscal quarter ended May 29, 2026, which Adobe expects to file in June 2026.
Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.
A reconciliation between GAAP and non-GAAP earnings results and financial targets and a statement regarding use of non-GAAP financial information are provided at the end of this press release and on Adobe’s investor relations website. Definitions of our non-GAAP financial measures are provided in the Current Report on Form 8-K relating to this press release.
About Adobe
Adobe (Nasdaq: ADBE) empowers everyone to create through industry-leading platforms and tools that unleash creativity, productivity and personalized customer experiences. For more information, visit www.adobe.com.
###
©2026 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in the United States and/or other countries. All other trademarks are the property of their respective owners.
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Condensed Consolidated Statements of Income
(In millions, except per share data; unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| May 29, 2026 | May 30, 2025 | May 29, 2026 | May 30, 2025 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Subscription | $ | 6,416 | $ | 5,641 | $ | 12,614 | $ | 11,124 | |||||||||||||||
| Product | 89 | 88 | 179 | 183 | |||||||||||||||||||
| Services and other | 113 | 144 | 223 | 280 | |||||||||||||||||||
| Total revenue | 6,618 | 5,873 | 13,016 | 11,587 | |||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
| Subscription | 586 | 505 | 1,126 | 995 | |||||||||||||||||||
| Product | 5 | 6 | 11 | 12 | |||||||||||||||||||
| Services and other | 124 | 127 | 242 | 253 | |||||||||||||||||||
| Total cost of revenue | 715 | 638 | 1,379 | 1,260 | |||||||||||||||||||
| Gross profit | 5,903 | 5,235 | 11,637 | 10,327 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 1,198 | 1,082 | 2,308 | 2,108 | |||||||||||||||||||
| Sales and marketing | 1,884 | 1,626 | 3,592 | 3,121 | |||||||||||||||||||
| General and administrative | 546 | 377 | 1,009 | 744 | |||||||||||||||||||
| Amortization of intangibles | 37 | 41 | 72 | 82 | |||||||||||||||||||
| Total operating expenses | 3,665 | 3,126 | 6,981 | 6,055 | |||||||||||||||||||
| Operating income | 2,238 | 2,109 | 4,656 | 4,272 | |||||||||||||||||||
| Non-operating income (expense): | |||||||||||||||||||||||
| Interest expense | (65) | (68) | (128) | (130) | |||||||||||||||||||
| Investment gains (losses), net | 18 | 2 | 23 | 8 | |||||||||||||||||||
| Other income (expense), net | 47 | 58 | 109 | 133 | |||||||||||||||||||
| Total non-operating income (expense), net | — | (8) | 4 | 11 | |||||||||||||||||||
| Income before income taxes | 2,238 | 2,101 | 4,660 | 4,283 | |||||||||||||||||||
| Provision for income taxes | 526 | 410 | 1,059 | 781 | |||||||||||||||||||
| Net income | $ | 1,712 | $ | 1,691 | $ | 3,601 | $ | 3,502 | |||||||||||||||
| Basic net income per share | $ | 4.26 | $ | 3.95 | $ | 8.86 | $ | 8.10 | |||||||||||||||
| Shares used to compute basic net income per share | 402 | 428 | 406 | 432 | |||||||||||||||||||
| Diluted net income per share | $ | 4.25 | $ | 3.94 | $ | 8.86 | $ | 8.08 | |||||||||||||||
| Shares used to compute diluted net income per share | 402 | 429 | 407 | 433 | |||||||||||||||||||
4
Condensed Consolidated Balance Sheets
(In millions; unaudited)
| May 29, 2026 | November 28, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 4,919 | $ | 5,431 | |||||||
| Short-term investments | 707 | 1,164 | |||||||||
Trade receivables, net of allowances for doubtful accounts of $14 and $13, respectively | 1,993 | 2,344 | |||||||||
| Prepaid expenses and other current assets | 1,449 | 1,224 | |||||||||
| Total current assets | 9,068 | 10,163 | |||||||||
| Property and equipment, net | 1,870 | 1,873 | |||||||||
| Operating lease right-of-use assets, net | 299 | 312 | |||||||||
| Goodwill | 14,041 | 12,857 | |||||||||
| Other intangibles, net | 1,012 | 495 | |||||||||
| Deferred income taxes | 1,998 | 2,186 | |||||||||
| Other assets | 1,645 | 1,610 | |||||||||
| Total assets | $ | 29,933 | $ | 29,496 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Trade payables | $ | 499 | $ | 417 | |||||||
Accrued expenses and other current liabilities | 2,455 | 2,648 | |||||||||
| Debt | 1,843 | — | |||||||||
| Deferred revenue | 7,152 | 6,905 | |||||||||
| Income taxes payable | 38 | 153 | |||||||||
| Operating lease liabilities | 91 | 77 | |||||||||
| Total current liabilities | 12,078 | 10,200 | |||||||||
| Long-term liabilities: | |||||||||||
| Debt | 4,802 | 6,210 | |||||||||
| Deferred revenue | 98 | 125 | |||||||||
| Income taxes payable | 536 | 469 | |||||||||
| Operating lease liabilities | 329 | 361 | |||||||||
| Other liabilities | 572 | 508 | |||||||||
| Total liabilities | 18,415 | 17,873 | |||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | — | — | |||||||||
| Additional paid-in capital | 16,416 | 15,361 | |||||||||
| Retained earnings | 48,767 | 45,354 | |||||||||
| Accumulated other comprehensive income (loss) | (247) | (245) | |||||||||
| Treasury stock, at cost | (53,418) | (48,847) | |||||||||
| Total stockholders’ equity | 11,518 | 11,623 | |||||||||
| Total liabilities and stockholders’ equity | $ | 29,933 | $ | 29,496 | |||||||
5
Condensed Consolidated Statements of Cash Flows
(In millions; unaudited)
| Three Months Ended | |||||||||||
| May 29, 2026 | May 30, 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 1,712 | $ | 1,691 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation, amortization and accretion | 193 | 209 | |||||||||
| Stock-based compensation | 534 | 481 | |||||||||
| Impairment of goodwill | 70 | — | |||||||||
| Other non-cash adjustments | 77 | (101) | |||||||||
| Changes in deferred revenue | (223) | (156) | |||||||||
| Changes in other operating assets and liabilities | (198) | 67 | |||||||||
| Net cash provided by operating activities | 2,165 | 2,191 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases, sales and maturities of short-term investments, net | (140) | (96) | |||||||||
| Purchases of property and equipment | (58) | (47) | |||||||||
Purchases and sales of long-term investments, intangibles and other assets, net | 44 | (135) | |||||||||
| Acquisitions, net of cash acquired | (1,560) | — | |||||||||
| Net cash used for investing activities | (1,714) | (278) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repurchases of common stock | (2,111) | (3,500) | |||||||||
Taxes paid related to net share settlement of equity awards, net of proceeds from treasury stock re-issuances | (91) | (112) | |||||||||
| Proceeds from issuance of debt | 493 | — | |||||||||
| Other financing activities, net | (146) | (176) | |||||||||
| Net cash used for financing activities | (1,855) | (3,788) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (9) | 48 | |||||||||
| Net change in cash and cash equivalents | (1,413) | (1,827) | |||||||||
| Cash and cash equivalents at beginning of period | 6,332 | 6,758 | |||||||||
| Cash and cash equivalents at end of period | $ | 4,919 | $ | 4,931 | |||||||
6
Non-GAAP Results
The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release.
(In millions, except per share data) | Three Months Ended | ||||||||||||||||
| May 29, 2026 | May 30, 2025 | February 27, 2026 | |||||||||||||||
| Operating income: | |||||||||||||||||
| GAAP operating income | $ | 2,238 | $ | 2,109 | $ | 2,418 | |||||||||||
| Stock-based and deferred compensation expense | 556 | 482 | 514 | ||||||||||||||
| Impairment of goodwill | 70 | — | — | ||||||||||||||
| Amortization of intangibles | 46 | 83 | 39 | ||||||||||||||
Acquisition-related expenses | 5 | — | 2 | ||||||||||||||
Loss contingency(*) | 30 | — | 62 | ||||||||||||||
| Non-GAAP operating income | $ | 2,945 | $ | 2,674 | $ | 3,035 | |||||||||||
| Net income: | |||||||||||||||||
| GAAP net income | $ | 1,712 | $ | 1,691 | $ | 1,889 | |||||||||||
| Stock-based and deferred compensation expense | 556 | 482 | 514 | ||||||||||||||
Impairment of goodwill | 70 | — | — | ||||||||||||||
| Amortization of intangibles | 46 | 83 | 39 | ||||||||||||||
Acquisition-related expenses | 5 | — | 2 | ||||||||||||||
Loss contingency(*) | 30 | — | 62 | ||||||||||||||
| Investment (gains) losses, net | (18) | (2) | (5) | ||||||||||||||
| Income tax adjustments | (1) | (83) | (13) | ||||||||||||||
| Non-GAAP net income | $ | 2,400 | $ | 2,171 | $ | 2,488 | |||||||||||
| Diluted net income per share: | |||||||||||||||||
| GAAP diluted net income per share | $ | 4.25 | $ | 3.94 | $ | 4.60 | |||||||||||
| Stock-based and deferred compensation expense | 1.38 | 1.12 | 1.25 | ||||||||||||||
| Impairment of goodwill | 0.17 | — | — | ||||||||||||||
| Amortization of intangibles | 0.12 | 0.19 | 0.10 | ||||||||||||||
Acquisition-related expenses | 0.01 | — | — | ||||||||||||||
Loss contingency(*) | 0.07 | — | 0.15 | ||||||||||||||
| Investment (gains) losses, net | (0.04) | — | (0.01) | ||||||||||||||
| Income tax adjustments | — | (0.19) | (0.03) | ||||||||||||||
| Non-GAAP diluted net income per share | $ | 5.96 | $ | 5.06 | $ | 6.06 | |||||||||||
Shares used to compute diluted net income per share | 402 | 429 | 411 | ||||||||||||||
The following table shows Adobe’s second quarter fiscal year 2026 GAAP tax rate reconciled to the non-GAAP tax rate included in this release.
| Second Quarter Fiscal 2026 | |||||||||||
| Effective income tax rate: | |||||||||||
| GAAP effective income tax rate | 23.5 | % | |||||||||
| Income tax adjustments | (2.5) | ||||||||||
| Stock-based and deferred compensation expense | (3.0) | ||||||||||
Non-GAAP effective income tax rate(**) | 18.0 | % | |||||||||
(*) Associated with a settlement of litigation and other legal matters
(**) Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028
7
Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions
The following tables show Adobe's third quarter fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.
(Shares in millions) | Third Quarter Fiscal 2026 | ||||||||||||||||||||||
| Low | High | ||||||||||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||
| GAAP diluted net income per share | $ | 4.40 | $ | 4.45 | |||||||||||||||||||
Stock-based and deferred compensation expense | 1.47 | 1.47 | |||||||||||||||||||||
| Amortization of intangibles | 0.15 | 0.15 | |||||||||||||||||||||
| Acquisition-related expenses | 0.04 | 0.04 | |||||||||||||||||||||
| Income tax adjustments | (0.01) | (0.01) | |||||||||||||||||||||
| Non-GAAP diluted net income per share | $ | 6.05 | $ | 6.10 | |||||||||||||||||||
| Shares used to compute diluted net income per share | 395 | 395 | |||||||||||||||||||||
Third Quarter Fiscal 2026 | |||||||||||
Operating margin: | |||||||||||
GAAP operating margin | 34.0 | % | |||||||||
Stock-based and deferred compensation expense | 8.9 | ||||||||||
| Amortization of intangibles | 0.9 | ||||||||||
| Acquisition-related expenses | 0.2 | ||||||||||
Non-GAAP operating margin | 44.0 | % | |||||||||
Third Quarter Fiscal 2026 | |||||||||||
| Effective income tax rate: | |||||||||||
| GAAP effective income tax rate | 23.0 | % | |||||||||
| Income tax adjustments | (1.5) | ||||||||||
Stock-based and deferred compensation expense | (3.5) | ||||||||||
Non-GAAP effective income tax rate(**) | 18.0 | % | |||||||||
(**) Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028
8
Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions (continued)
The following tables show Adobe's updated annual fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.
(Shares in millions) | Fiscal Year 2026 | ||||||||||||||||||||||
| Low | High | ||||||||||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||
| GAAP diluted net income per share | $ | 17.90 | $ | 18.00 | |||||||||||||||||||
| Stock-based and deferred compensation expense | 5.53 | 5.52 | |||||||||||||||||||||
| Amortization of intangibles | 0.50 | 0.50 | |||||||||||||||||||||
| Impairment of goodwill | 0.18 | 0.18 | |||||||||||||||||||||
| Loss contingency | 0.23 | 0.23 | |||||||||||||||||||||
| Acquisition-related expenses | 0.09 | 0.09 | |||||||||||||||||||||
| Income tax adjustments | (0.08) | (0.07) | |||||||||||||||||||||
| Non-GAAP diluted net income per share | $ | 24.35 | $ | 24.45 | |||||||||||||||||||
| Shares used to compute diluted net income per share | 399 | 399 | |||||||||||||||||||||
Fiscal Year 2026 | |||||||||||
Operating margin: | |||||||||||
GAAP operating margin | 35.0 | % | |||||||||
Stock-based and deferred compensation expense | 8.5 | ||||||||||
| Amortization of intangibles | 0.8 | ||||||||||
| Impairment of goodwill | 0.3 | ||||||||||
| Loss contingency | 0.3 | ||||||||||
| Acquisition-related expenses | 0.1 | ||||||||||
Non-GAAP operating margin | 45.0 | % | |||||||||
Fiscal Year 2026 | |||||||||||
| Effective income tax rate: | |||||||||||
| GAAP effective income tax rate | 22.5 | % | |||||||||
| Income tax adjustments | (1.0) | ||||||||||
Stock-based and deferred compensation expense | (3.5) | ||||||||||
Non-GAAP effective income tax rate(**) | 18.0 | % | |||||||||
(**) Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028
Use of Non-GAAP Financial Information
Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate Adobe’s operating results and future prospects in the same manner as management.
Adobe's management believes it is useful for itself and investors to review, as applicable, both GAAP information as well as non-GAAP measures, which may exclude items such as stock-based and deferred compensation expenses, amortization of intangibles, investment gains and losses, income tax adjustments and other items that are not considered part of Adobe’s ongoing operations, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Adobe uses these non-GAAP measures in order to assess the
9
performance of Adobe's business and for planning and forecasting in subsequent periods. Whenever such a non-GAAP measure is used, Adobe provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.
10
FAQ
How did Adobe (ADBE) perform in Q2 FY2026?
Adobe reported record Q2 FY2026 revenue of $6.62 billion, up 13% year over year. GAAP diluted EPS was $4.25 and non-GAAP diluted EPS was $5.96, reflecting strong subscription growth across customer groups.
Did Adobe (ADBE) raise its fiscal 2026 guidance?
Yes. Adobe raised FY2026 total revenue guidance to $26.50–$26.60 billion and non-GAAP EPS guidance to $24.35–$24.45. The outlook assumes a non-GAAP operating margin of about 45% and reflects contributions from the Semrush acquisition.
What were Adobe’s key profitability metrics in Q2 FY2026?
GAAP operating income was $2.24 billion and non-GAAP operating income was $2.95 billion in Q2 FY2026. GAAP net income reached $1.71 billion, while non-GAAP net income was $2.40 billion, after excluding specified non-GAAP adjustments.
How much recurring revenue did Adobe (ADBE) report this quarter?
Adobe’s total annualized recurring revenue was $27.10 billion exiting Q2 FY2026, including about $480 million from Semrush. AI-first ARR more than tripled year over year and exceeded $500 million, supporting ongoing subscription revenue growth.
What leadership changes did Adobe announce in this 8-K filing?
Adobe disclosed that CFO Daniel Durn will resign effective June 15, 2026. Steven Day, currently SVP of Corporate Finance and CFO of the Customer Experience Orchestration Business Unit, will become interim Chief Financial Officer on that date.
What are Adobe’s Q3 FY2026 financial targets?
For Q3 FY2026, Adobe targets total revenue of $6.67–$6.72 billion and GAAP EPS of $4.40–$4.45, with non-GAAP EPS of $6.05–$6.10. These goals assume an approximately 44% non-GAAP operating margin and 18% non-GAAP tax rate.