# Adobe (ADBE) Q2 FY2026 earnings

Results filed 2026-06-11 for the quarter ended 2026-05-29. Source page: https://earnings.opennash.com/companies/adbe/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/796343/000079634326000109/0000796343-26-000109-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenue | $6.62 billion | up 13% year over year, or 11% in constant currency | GAAP |
| Net income | $1.71 billion |  | GAAP |
| Net income (non-GAAP) | $2.40 billion |  | non-GAAP |
| Diluted EPS | $4.25 |  | GAAP |
| Diluted EPS (non-GAAP) | $5.96 |  | non-GAAP |
| Operating income | $2.24 billion |  | GAAP |
| Operating income (non-GAAP) | $2.95 billion |  | non-GAAP |
| Cash flows from operations | $2.17 billion |  |  |
| Total Adobe ARR | $27.10 billion |  |  |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Business Professionals & Consumers subscription revenue | $1.85 billion | 16% year-over-year growth, or 15% in constant currency |
| Creative & Marketing Professionals subscription revenue | $4.54 billion | 13% year-over-year growth, or 11% in constant currency |
| Total Customer Group subscription revenue | $6.39 billion | 14% year-over-year growth, or 12% in constant currency |
| Remaining Performance Obligations | $22.27 billion |  |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Total revenue | third quarter FY2026 | $6.67 billion to $6.72 billion |
| GAAP EPS | third quarter FY2026 | $4.40 to $4.45 |
| Non-GAAP EPS | third quarter FY2026 | $6.05 to $6.10 |
| Non-GAAP operating margin | third quarter FY2026 | ~44.0% |
| Non-GAAP tax rate | third quarter FY2026 | ~18.0% |
| Total revenue | FY2026 | $26.50 billion to $26.60 billion |
| GAAP EPS | FY2026 | $17.90 to $18.00 |
| Non-GAAP EPS | FY2026 | $24.35 to $24.45 |
| Non-GAAP operating margin | FY2026 | ~45.0% |
| Total Adobe ending ARR growth | FY2026 | 10.2% 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.

## 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.