OpenNashEarnings

Adobe (ADBE) · Software

Adobe Q2 FY2026 earnings: summary, key numbers & outlook

Results filed 11 Jun 2026 · Quarter ended 29 May 2026

Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Adobe achieved record revenue of $6.62 billion in its second quarter of FY2026, which represents 13% year-over-year growth, with diluted earnings per share of $4.25 on a GAAP basis and $5.96 on a non-GAAP basis.

Adobe reported record second-quarter revenue of $6.62 billion, up 13% from a year ago (11% in constant currency). GAAP diluted EPS was $4.25 and non-GAAP EPS was $5.96. GAAP results include a $0.17 per share non-cash goodwill impairment in Publishing & Advertising. Total ARR reached $27.10 billion, including about $480 million from Semrush, and operating cash flow was $2.17 billion.

Adobe raised its full-year fiscal 2026 revenue target to $26.50 billion to $26.60 billion and non-GAAP EPS to $24.35 to $24.45. For the third quarter it expects revenue of $6.67 billion to $6.72 billion. The main risk is leadership change: CFO Dan Durn departs June 15, 2026, and Steve Day becomes interim CFO. Share count is also falling as buybacks continue, while acquisition costs and the impairment weigh on GAAP results.

Key numbers

Total revenue · GAAP
$6.62 billion

up 13% year over year, or 11% in constant currency

Net income · GAAP
$1.71 billion

Net income (non-GAAP) · non-GAAP
$2.40 billion

Diluted EPS · GAAP
$4.25

Diluted EPS (non-GAAP) · non-GAAP
$5.96

Operating income · GAAP
$2.24 billion

Operating income (non-GAAP) · non-GAAP
$2.95 billion

Cash flows from operations
$2.17 billion

Segment or metricValueChange
Business Professionals & Consumers subscription revenue$1.85 billion16% year-over-year growth, or 15% in constant currency
Creative & Marketing Professionals subscription revenue$4.54 billion13% year-over-year growth, or 11% in constant currency
Total Customer Group subscription revenue$6.39 billion14% year-over-year growth, or 12% in constant currency
Remaining Performance Obligations$22.27 billion
Where each number comes from
  • Total revenue: “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.”
  • Net income: “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.”
  • Net income (non-GAAP): “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.”
  • Diluted EPS: “Diluted earnings per share was $4.25 on a GAAP basis and $5.96 on a non-GAAP basis.”
  • Diluted EPS (non-GAAP): “Diluted earnings per share was $4.25 on a GAAP basis and $5.96 on a non-GAAP basis.”
  • Operating income: “GAAP operating income in the second quarter was $2.24 billion and non-GAAP operating income was $2.95 billion.”
  • Operating income (non-GAAP): “GAAP operating income in the second quarter was $2.24 billion and non-GAAP operating income was $2.95 billion.”
  • Cash flows from operations: “Cash flows from operations were $2.17 billion.”
  • Business Professionals & Consumers subscription revenue: “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: “Creative & Marketing Professionals subscription revenue was $4.54 billion, which represents 13% year-over-year growth, or 11% in constant currency.”
  • Total Customer Group subscription revenue: “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.”
  • Remaining Performance Obligations: “Exiting the quarter, Remaining Performance Obligations (“RPO”) were $22.27 billion, and Current Remaining Performance Obligations (“cRPO”) were 67%.”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ2 FY2026vs year agovs last quarter
Revenue$6.6B+12.7%+3.4%
Operating income$2.2B+6.1%−7.4%
Net income$1.7B+1.2%−9.4%
Diluted EPS$4.25+7.9%−7.6%
Free cash flow$2.1B−1.7%−27.9%
Gross margin89.2%+0.1 pts−0.4 pts
Operating margin33.8%−2.1 pts−4.0 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Total revenuethird quarter FY2026$6.67 billion to $6.72 billion
GAAP EPSthird quarter FY2026$4.40 to $4.45
Non-GAAP EPSthird quarter FY2026$6.05 to $6.10
Non-GAAP operating marginthird quarter FY2026~44.0%
Non-GAAP tax ratethird quarter FY2026~18.0%
Total revenueFY2026$26.50 billion to $26.60 billion
GAAP EPSFY2026$17.90 to $18.00
Non-GAAP EPSFY2026$24.35 to $24.45
Non-GAAP operating marginFY2026~45.0%
Total Adobe ending ARR growthFY202610.2% year over year

Key takeaways

  1. Record revenue of $6.62 billion, up 13%

    Adobe's second-quarter revenue grew 13% year over year, or 11% in constant currency, driven by what management called strong AI-driven demand.

  2. Full-year revenue and EPS targets raised

    FY2026 total revenue is now targeted at $26.50 billion to $26.60 billion, with non-GAAP EPS of $24.35 to $24.45.

  3. AI-first ARR tripled past $500 million

    Adobe says AI-first ARR tripled year over year and exceeds $500 million, while total Adobe ARR exited the quarter at $27.10 billion.

  4. Goodwill impairment weighed on GAAP earnings

    GAAP diluted EPS of $4.25 includes a $0.17 per share non-cash goodwill impairment tied to the Publishing & Advertising reporting unit, versus non-GAAP EPS of $5.96.

  5. CFO Dan Durn departs; Steve Day interim

    Dan Durn leaves June 15, 2026, and Steve Day, SVP of Corporate Finance, becomes interim CFO reporting to Shantanu Narayen.

Charts

Revenue$6.6B+12.7% y/yQ2 FY26
Q4 FY24: $5.6B (worked out from the annual figure)Q4 24$5.6BQ1 FY25: $5.7BQ1 25$5.7BQ2 FY25: $5.9BQ2 25$5.9BQ3 FY25: $6.0BQ3 25$6.0BQ4 FY25: $6.2B (worked out from the annual figure)Q4 25$6.2BQ1 FY26: $6.4BQ1 26$6.4BQ2 FY26: $6.6BQ2 26$6.6BQ3 FY26: $6.8BQ3 26$6.8B

Fourth quarter worked out from the annual figure.

Data
Q4 FY24$5.6B *
Q1 FY25$5.7B
Q2 FY25$5.9B
Q3 FY25$6.0B
Q4 FY25$6.2B *
Q1 FY26$6.4B
Q2 FY26$6.6B
Q3 FY26$6.8B
Diluted EPS (GAAP)$4.25+7.9% y/yQ2 FY26
Q1 FY25: $4.14Q1 25$4.14Q2 FY25: $3.94Q2 25$3.94Q3 FY25: $4.18Q3 25$4.18Q1 FY26: $4.60Q1 26$4.60Q2 FY26: $4.25Q2 26$4.25Q3 FY26: $4.62Q3 26$4.62
Data
Q1 FY25$4.14
Q2 FY25$3.94
Q3 FY25$4.18
Q1 FY26$4.60
Q2 FY26$4.25
Q3 FY26$4.62

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin33.8%−2.1 pts y/yQ2 FY26
Q4 FY24: 34.9%Q4 2434.9%Q1 FY25: 37.9%Q1 2537.9%Q2 FY25: 35.9%Q2 2535.9%Q3 FY25: 36.3%Q3 2536.3%Q4 FY25: 36.5%Q4 2536.5%Q1 FY26: 37.8%Q1 2637.8%Q2 FY26: 33.8%Q2 2633.8%Q3 FY26: 34.8%Q3 2634.8%
Data
Q4 FY2434.9%
Q1 FY2537.9%
Q2 FY2535.9%
Q3 FY2536.3%
Q4 FY2536.5%
Q1 FY2637.8%
Q2 FY2633.8%
Q3 FY2634.8%
Free cash flow$2.1B−1.7% y/yQ2 FY26
Q4 FY24: $2.9BQ4 24$2.9BQ1 FY25: $2.5BQ1 25$2.5BQ2 FY25: $2.1BQ2 25$2.1BQ3 FY25: $2.1BQ3 25$2.1BQ4 FY25: $3.1BQ4 25$3.1BQ1 FY26: $2.9BQ1 26$2.9BQ2 FY26: $2.1BQ2 26$2.1BQ3 FY26: $2.4BQ3 26$2.4B
Data
Q4 FY24$2.9B
Q1 FY25$2.5B
Q2 FY25$2.1B
Q3 FY25$2.1B
Q4 FY25$3.1B
Q1 FY26$2.9B
Q2 FY26$2.1B
Q3 FY26$2.4B

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Adobe's Q2 FY2026 results?

Adobe reported record revenue of $6.62 billion, up 13% year over year, with GAAP diluted EPS of $4.25 and non-GAAP diluted EPS of $5.96. GAAP net income was $1.71 billion and non-GAAP net income was $2.40 billion.

Did Adobe raise its full-year guidance?

Yes. Adobe raised its FY2026 targets to total revenue of $26.50 billion to $26.60 billion and non-GAAP EPS of $24.35 to $24.45, with GAAP EPS of $17.90 to $18.00.

What is Adobe's guidance for Q3 FY2026?

Adobe targets Q3 total revenue of $6.67 billion to $6.72 billion, GAAP EPS of $4.40 to $4.45 and non-GAAP EPS of $6.05 to $6.10. It assumes a non-GAAP operating margin of about 44.0%.

Why was GAAP EPS much lower than non-GAAP EPS?

Non-GAAP EPS excludes items such as stock-based and deferred compensation expense ($1.38 per share) and a $0.17 per share goodwill impairment related to Publishing & Advertising. Other adjustments include amortization of intangibles ($0.12) and a loss contingency ($0.07).

What changed in Adobe's leadership?

CFO Dan Durn is leaving Adobe on June 15, 2026 to pursue a new opportunity. Steve Day, SVP of Corporate Finance, will serve as interim CFO and report to CEO Shantanu Narayen.

Documents

SEC filing