Adobe (ADBE) investor relations material

Executive summary

• Q2 FY2026 revenue reached $6.62B, up 13% year-over-year (11% in constant currency), driven by strong subscription growth and AI-powered product innovation.

• GAAP EPS was $4.25 (up 8% YoY); non-GAAP EPS was $5.96 (up 18% YoY); net income was $1.71B, flat year-over-year.

• Strategic focus on expanding freemium offerings to accelerate user acquisition and lifetime value, especially for Acrobat, Express, and Firefly.

• Completed acquisition of Semrush for $1.87B, adding $480M ARR and strengthening marketing solutions.

• Leadership transitions underway: CFO Dan Durn departing, Steve Day named interim CFO; CEO search progressing.

Financial highlights

• Total ending ARR reached $27.10B, up 12.5% year-over-year, including $480M from Semrush.

• Subscription revenue totaled $6.39B–$6.42B (+14% YoY); business professionals and consumers at $1.85B (+16% YoY); creative/marketing professionals at $4.54B (+13% YoY).

• Cash flow from operations was $2.17B in Q2; ending cash and short-term investments at $4.92B–$5.63B.

• Repurchased 8.5M shares in Q2; $26.78B–$27B remains under authorization.

• GAAP results included a $70M non-cash goodwill impairment charge related to Publishing & Advertising.

Outlook and guidance

• FY2026 revenue target raised to $26.50B–$26.60B; non-GAAP EPS target $24.35–$24.45.

• FY2026 ARR growth target of 10.2%, reflecting Semrush addition and strategic shift to freemium growth.

• Q3 FY2026 revenue guidance: $6.67B–$6.72B; non-GAAP EPS: $6.05–$6.10.

• Non-GAAP operating margin target of ~45% for FY2026.

• GAAP EPS guidance for FY2026: $17.90–$18.00.