Investor Relations Contact
• Achieves major milestone of 1 billion monthly active users (MAU) across creativity and productivity solutions
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 third quarter FY2026 ended Aug. 28, 2026.
“Adobe delivered record Q3 results, reflecting the strength of our AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience,” said Shantanu Narayen, chair and CEO, Adobe. “Reaching a landmark of more than one billion monthly active users is a defining moment for Adobe, and I have confidence that Anil will build on this momentum to drive Adobe's next chapter of growth and innovation in the AI era.”
“Adobe delivered double-digit revenue and EPS growth in Q3 and we're raising full year revenue and EPS targets,” said Steve Day, senior vice president and interim CFO, Adobe. “We are expanding our user base through a freemium strategy and deepening engagement with agentic experiences to deliver long-term durable growth.”
• Adobe achieved record revenue of $6.76 billion in its third quarter of FY2026, which represents 13% year-over-year growth, or 12% in constant currency. Diluted earnings per share was $4.62 on a GAAP basis and $6.13 on a non-GAAP basis.
• Total Adobe Annualized Recurring Revenue (“ARR”) exiting the quarter was $27.50 billion.
• GAAP operating income in the third quarter was $2.35 billion and non-GAAP operating income was $2.97 billion. GAAP net income was $1.83 billion and non- GAAP net income was $2.42 billion.
• Exiting the quarter, Remaining Performance Obligations (“RPO”) were $22.16 billion, and Current Remaining Performance Obligations (“cRPO”) were 67%.
• Total Customer Group subscription revenue was $6.56 billion, which represents 14% year-over-year growth, or 13% in constant currency.
• Business Professionals & Consumers subscription revenue was $1.91 billion, which represents 16% year-over-year growth, or 15% in constant currency.
• Creative & Marketing Professionals subscription revenue was $4.65 billion, which represents 13% year-over-year growth, or 12% in constant currency. 1
The following table summarizes Adobe’s fourth quarter FY2026 targets, which assumes current macroeconomic conditions:
Total revenue $6.80 billion to $6.85 billion Business Professionals $1.93 billion to $1.95 & Consumers billion subscription revenue Creative & Marketing $4.665 billion to Professionals $4.695 billion subscription revenue Earnings per share1 GAAP: $4.65 to $4.70 Non-GAAP: $6.30 to $6.35
1 Targets assume non-GAAP operating margin of ~44.0%, GAAP tax rate of ~22.0%, non-GAAP tax rate of ~18.0% and diluted share count of ~389 million for fourth quarter FY2026.
Total revenue $26.576 billion to $26.626 billion Business Professionals $7.470 billion to & Consumers $7.490 billion subscription revenue Creative & Marketing $18.242 billion to Professionals $18.272 billion subscription revenue Total Adobe ending ARR 10.2% year over year growth Earnings per share2 GAAP: $18.12 to $18.17 Non-GAAP: $24.45 to $24.50
2 Targets 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 ~400 million for FY2026.
Adobe will webcast its third 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.
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; 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 Aug. 28, 2026, which Adobe expects to file in Sept. 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. 2
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. 3
August 28, 2026 November 28, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 4,359 $ 5,431 Short-term investments 1,280 1,164 Trade receivables, net of allowances for doubtful accounts of $12 and 2,081 2,344 $13, respectively Prepaid expenses and other current 1,438 1,224 assets Total current assets 9,158 10,163 Property and equipment, net 1,870 1,873 Operating lease right-of-use 286 312 assets, net Goodwill 14,037 12,857 Other intangibles, net 956 495 Deferred income taxes 1,928 2,186 Other assets 1,746 1,610 Total assets $ 29,981 $ 29,496 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Trade payables $ 529 $ 417 Accrued expenses and other current 2,516 2,648 liabilities Debt 1,597 — Deferred revenue 7,094 6,905 Income taxes payable 63 153 Operating lease liabilities 89 77 Total current liabilities 11,888 10,200 Long-term liabilities: Debt 4,766 6,210 Deferred revenue 110 125 Income taxes payable 567 469 Operating lease liabilities 310 361 Other liabilities 576 508 Total liabilities 18,217 17,873 Stockholders’ equity: Preferred stock — — Common stock — — Additional paid-in capital 16,992 15,361 Retained earnings 50,594 45,354 Accumulated other comprehensive income -203 -245 (loss) Treasury stock, at cost -55,619 -48,847 Total stockholders’ equity 11,764 11,623 Total liabilities and stockholders’ $ 29,981 $ 29,496 equity
Three Months Ended August 28, 2026 August 29, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net income $ 1,827 $ 1,772 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and 215 208 accretion Stock-based 539 497 compensation Other non-cash 71 -101 adjustments Changes in -46 200 deferred revenue Changes in other operating assets -83 -378 and liabilities Net cash provided by 2,523 2,198 operating activities Cash flows from investing activities: Purchases, sales and maturities of -564 -169 short-term investments, net Purchases of property and -85 -72 equipment Purchases and sales of long-term investments, -19 -21 intangibles and other assets, net Acquisitions, net of cash — -17 acquired Net cash used for investing -668 -279 activities Cash flows from financing activities: Repurchases of -2,232 -2,057 common stock Proceeds from treasury stock re-issuances, net of taxes 86 142 paid related to net share settlement of equity awards Repayment of -250 — debt Other financing -19 39 activities, net Net cash used for financing -2,415 -1,876 activities Effect of exchange rate changes on cash — 8 and cash equivalents Net change in cash and cash -560 51 equivalents Cash and cash equivalents at 4,919 4,931 beginning of period Cash and cash equivalents at $ 4,359 $ 4,982 end of period
The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release.
(In millions, except per Three Months August 28, August 29, May 29, share data) Ended 2026 2025 2026 ────────────────────────────────────────────────────────────────────────────── Operating income: GAAP operating $ 2,354 $ 2,173 $ 2,238 income Stock-based and deferred 544 521 556 compensation expense Impairment of — — 70 goodwill Amortization 58 79 46 of intangibles Acquisition-r… 18 — 5 expenses Loss — — 30 contingency Non-GAAP operating $ 2,974 $ 2,773 $ 2,945 income Net income: GAAP net $ 1,827 $ 1,772 $ 1,712 income Stock-based and deferred 544 521 556 compensation expense Impairment of — — 70 goodwill Amortization 58 79 46 of intangibles Acquisition-r… 18 — 5 expenses Loss — — 30 contingency Investment (gains) -21 -23 -18 losses, net Income tax -2 -97 -1 adjustments Non-GAAP net $ 2,424 $ 2,252 $ 2,400 income Diluted net income per share: GAAP diluted net income per $ 4.62 $ 4.18 $ 4.25 share Stock-based and deferred 1.38 1.23 1.38 compensation expense Impairment of — — 0.17 goodwill Amortization 0.15 0.19 0.12 of intangibles Acquisition-r… 0.04 — 0.01 expenses Loss — — 0.07 contingency Investment (gains) -0.05 -0.05 -0.04 losses, net Income tax -0.01 -0.24 — adjustments Non-GAAP diluted net $ 6.13 $ 5.31 $ 5.96 income per share Shares used to compute diluted net 395 424 402 income per share
The following table shows Adobe’s third quarter fiscal year 2026 GAAP tax rate reconciled to the non-GAAP tax rate included in this release.
Third Quarter Fiscal 2026 Effective income tax rate: GAAP effective income tax rate 22.5 % Income tax adjustments -1.5 Stock-based and deferred compensation -3.0 expense 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 7 Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions
The following tables show Adobe's fourth quarter fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.
(Shares in millions) Fourth Quarter Diluted net Fiscal 2026 income per share: Low High ────────────────────────────────────────────────────────────────────────────── GAAP diluted net $ 4.65 $ 4.70 income per share Stock-based and deferred 1.48 1.48 compensation expense Amortization of 0.16 0.16 intangibles Acquisition-rela… 0.08 0.08 expenses Income tax -0.07 -0.07 adjustments Non-GAAP diluted net income per $ 6.30 $ 6.35 share Shares used to compute diluted 389 389 net income per share
Fourth Quarter Fiscal 2026 Operating margin: GAAP operating margin 34.0 % Stock-based and deferred compensation 8.6 expense Amortization of intangibles 0.9 Acquisition-related expenses 0.5 Non-GAAP operating margin 44.0 %
Fourth Quarter Fiscal 2026 Effective income tax rate: GAAP effective income tax rate 22.0 % Income tax adjustments -1.0 Stock-based and deferred compensation -3.0 expense 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 Diluted net income per share: Low High ────────────────────────────────────────────────────────────────────────────── GAAP diluted net income per $ 18.12 $ 18.17 share Stock-based and deferred compensation 5.42 5.42 expense Amortization of intangibles 0.51 0.51 Impairment of goodwill 0.18 0.18 Loss contingency 0.23 0.23 Acquisition-related expenses 0.14 0.14 Investment (gains) losses, net -0.04 -0.04 Income tax adjustments -0.11 -0.11 Non-GAAP diluted net income $ 24.45 $ 24.50 per share Shares used to compute diluted net 400 400 income per share
Fiscal Year 2026 Operating margin: GAAP operating margin 35.0 % Stock-based and deferred compensation 8.3 expense Amortization of intangibles 0.8 Impairment of goodwill 0.3 Loss contingency 0.4 Acquisition-related expenses 0.2 Non-GAAP operating margin 45.0 %
Fiscal Year 2026 Effective income tax rate: GAAP effective income tax rate 22.5 % Income tax adjustments -1.5 Stock-based and deferred compensation -3.0 expense 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
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 9 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 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
Full text with the tables
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 Q3 Results
• Adobe AI-first ARR grew more than 150% year over year
• Achieves major milestone of 1 billion monthly active users (MAU) across
creativity and productivity solutions
SAN JOSE, Calif. – Sept. 10, 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 third quarter FY2026 ended Aug.
28, 2026.
“Adobe delivered record Q3 results, reflecting the strength of our AI
innovation, expanding customer reach and leadership across creativity,
productivity and customer experience,” said Shantanu Narayen, chair and CEO,
Adobe. “Reaching a landmark of more than one billion monthly active users is a
defining moment for Adobe, and I have confidence that Anil will build on this
momentum to drive Adobe's next chapter of growth and innovation in the AI era.”
“Adobe delivered double-digit revenue and EPS growth in Q3 and we're raising
full year revenue and EPS targets,” said Steve Day, senior vice president and
interim CFO, Adobe. “We are expanding our user base through a freemium strategy
and deepening engagement with agentic experiences to deliver long-term durable
growth.”
Third Quarter FY2026 Financial Highlights
• Adobe achieved record revenue of $6.76 billion in its third quarter of FY2026,
which represents 13% year-over-year growth, or 12% in constant currency. Diluted
earnings per share was $4.62 on a GAAP basis and $6.13 on a non-GAAP basis.
• Total Adobe Annualized Recurring Revenue (“ARR”) exiting the quarter was
$27.50 billion.
• GAAP operating income in the third quarter was $2.35 billion and non-GAAP
operating income was $2.97 billion. GAAP net income was $1.83 billion and non-
GAAP net income was $2.42 billion.
• Record Q3 cash flows from operations were $2.52 billion.
• Exiting the quarter, Remaining Performance Obligations (“RPO”) were $22.16
billion, and Current Remaining Performance Obligations (“cRPO”) were 67%.
• Adobe repurchased approximately 9.5 million shares during the quarter.
Third Quarter FY2026 Customer Group Highlights
• Total Customer Group subscription revenue was $6.56 billion, which represents
14% year-over-year growth, or 13% in constant currency.
• Business Professionals & Consumers subscription revenue was $1.91 billion,
which represents 16% year-over-year growth, or 15% in constant currency.
• Creative & Marketing Professionals subscription revenue was $4.65 billion,
which represents 13% year-over-year growth, or 12% in constant currency.
1
Financial Targets
The following table summarizes Adobe’s fourth quarter FY2026 targets, which
assumes current macroeconomic conditions:
Total revenue $6.80 billion to $6.85
billion
Business Professionals $1.93 billion to $1.95
& Consumers billion
subscription revenue
Creative & Marketing $4.665 billion to
Professionals $4.695 billion
subscription revenue
Earnings per share1 GAAP: $4.65 to $4.70 Non-GAAP: $6.30 to
$6.35
1 Targets assume non-GAAP operating margin of ~44.0%, GAAP tax rate of ~22.0%,
non-GAAP tax rate of ~18.0% and diluted share count of ~389 million for fourth
quarter FY2026.
The following table summarizes Adobe’s updated FY2026 targets:
Total revenue $26.576 billion to
$26.626 billion
Business Professionals $7.470 billion to
& Consumers $7.490 billion
subscription revenue
Creative & Marketing $18.242 billion to
Professionals $18.272 billion
subscription revenue
Total Adobe ending ARR 10.2% year over year
growth
Earnings per share2 GAAP: $18.12 to $18.17 Non-GAAP: $24.45 to
$24.50
2 Targets 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 ~400 million for FY2026.
Adobe to Host Conference Call
Adobe will webcast its third 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;
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 Aug. 28,
2026, which Adobe expects to file in Sept. 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.
2
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.
3
Condensed Consolidated Statements of Income
(In millions, except per share data; unaudited)
Three August August Nine August
Months 28, 29, Months 28, August
Ended 2026 2025 Ended 2026 29, 2025
──────────────────────────────────────────────────────────────────────────────
Reven…
Subsc… $ 6,582 $ 5,791 $ 19,196 $ 16,915
Produ… 67 68 246 251
Servi…
and 111 129 334 409
other
Total 6,760 5,988 19,776 17,575
reven…
Cost
of
reven…
Subsc… 633 510 1,759 1,505
Produ… 5 5 16 17
Servi…
and 125 127 367 380
other
Total
cost 763 642 2,142 1,902
of
reven…
Gross 5,997 5,346 17,634 15,673
profit
Opera…
expen…
Resea…
and 1,288 1,088 3,596 3,196
devel…
Sales
and 1,827 1,639 5,419 4,760
marke…
Gener…
and 488 408 1,497 1,152
admin…
Amort…
of 40 38 112 120
intan…
Total
opera… 3,643 3,173 10,624 9,228
expen…
Opera… 2,354 2,173 7,010 6,445
income
Non-o…
income
(expe…
Inter… -66 -67 -194 -197
expen…
Inves…
gains 21 23 44 31
(loss…
net
Other
income 48 58 157 191
(expe…
net
Total
non-o…
income 3 14 7 25
(expe…
net
Income
before 2,357 2,187 7,017 6,470
income
taxes
Provi…
for 530 415 1,589 1,196
income
taxes
Net $ 1,827 $ 1,772 $ 5,428 $ 5,274
income
Basic
net
income $ 4.63 $ 4.18 $ 13.48 $ 12.28
per
share
Shares
used
to
compu…
basic 395 423 403 429
net
income
per
share
Dilut…
net
income $ 4.62 $ 4.18 $ 13.47 $ 12.26
per
share
Shares
used
to
compu…
dilut… 395 424 403 430
net
income
per
share
4
Condensed Consolidated Balance Sheets
(In millions; unaudited)
August 28, 2026 November 28, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 4,359 $ 5,431
Short-term investments 1,280 1,164
Trade receivables, net of
allowances for
doubtful accounts of $12 and 2,081 2,344
$13,
respectively
Prepaid expenses and other
current 1,438 1,224
assets
Total current assets 9,158 10,163
Property and equipment, net 1,870 1,873
Operating lease right-of-use 286 312
assets, net
Goodwill 14,037 12,857
Other intangibles, net 956 495
Deferred income taxes 1,928 2,186
Other assets 1,746 1,610
Total assets $ 29,981 $ 29,496
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Trade payables $ 529 $ 417
Accrued expenses and other
current 2,516 2,648
liabilities
Debt 1,597 —
Deferred revenue 7,094 6,905
Income taxes payable 63 153
Operating lease liabilities 89 77
Total current liabilities 11,888 10,200
Long-term liabilities:
Debt 4,766 6,210
Deferred revenue 110 125
Income taxes payable 567 469
Operating lease liabilities 310 361
Other liabilities 576 508
Total liabilities 18,217 17,873
Stockholders’ equity:
Preferred stock — —
Common stock — —
Additional paid-in capital 16,992 15,361
Retained earnings 50,594 45,354
Accumulated other
comprehensive income -203 -245
(loss)
Treasury stock, at cost -55,619 -48,847
Total stockholders’ equity 11,764 11,623
Total liabilities and
stockholders’ $ 29,981 $ 29,496
equity
5
Condensed Consolidated Statements of Cash Flows
(In millions; unaudited)
Three Months
Ended August 28, 2026 August 29, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating
activities:
Net income $ 1,827 $ 1,772
Adjustments to
reconcile net
income to
net cash
provided by
operating
activities:
Depreciation,
amortization and 215 208
accretion
Stock-based 539 497
compensation
Other non-cash 71 -101
adjustments
Changes in -46 200
deferred revenue
Changes in other
operating assets -83 -378
and
liabilities
Net cash
provided by 2,523 2,198
operating
activities
Cash flows from
investing
activities:
Purchases, sales
and maturities
of -564 -169
short-term
investments, net
Purchases of
property and -85 -72
equipment
Purchases and
sales of
long-term
investments, -19 -21
intangibles and
other
assets, net
Acquisitions,
net of cash — -17
acquired
Net cash used
for investing -668 -279
activities
Cash flows from
financing
activities:
Repurchases of -2,232 -2,057
common stock
Proceeds from
treasury stock
re-issuances,
net of taxes 86 142
paid related
to net share
settlement of
equity awards
Repayment of -250 —
debt
Other financing -19 39
activities, net
Net cash used
for financing -2,415 -1,876
activities
Effect of
exchange rate
changes on cash — 8
and cash
equivalents
Net change in
cash and cash -560 51
equivalents
Cash and cash
equivalents at 4,919 4,931
beginning
of period
Cash and cash
equivalents at $ 4,359 $ 4,982
end of
period
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 Three Months August 28, August 29, May 29,
share data) Ended 2026 2025 2026
──────────────────────────────────────────────────────────────────────────────
Operating
income:
GAAP operating $ 2,354 $ 2,173 $ 2,238
income
Stock-based
and deferred 544 521 556
compensation
expense
Impairment of — — 70
goodwill
Amortization 58 79 46
of intangibles
Acquisition-r… 18 — 5
expenses
Loss — — 30
contingency
Non-GAAP
operating $ 2,974 $ 2,773 $ 2,945
income
Net income:
GAAP net $ 1,827 $ 1,772 $ 1,712
income
Stock-based
and deferred 544 521 556
compensation
expense
Impairment of — — 70
goodwill
Amortization 58 79 46
of intangibles
Acquisition-r… 18 — 5
expenses
Loss — — 30
contingency
Investment
(gains) -21 -23 -18
losses, net
Income tax -2 -97 -1
adjustments
Non-GAAP net $ 2,424 $ 2,252 $ 2,400
income
Diluted net
income per
share:
GAAP diluted
net income per $ 4.62 $ 4.18 $ 4.25
share
Stock-based
and deferred 1.38 1.23 1.38
compensation
expense
Impairment of — — 0.17
goodwill
Amortization 0.15 0.19 0.12
of intangibles
Acquisition-r… 0.04 — 0.01
expenses
Loss — — 0.07
contingency
Investment
(gains) -0.05 -0.05 -0.04
losses, net
Income tax -0.01 -0.24 —
adjustments
Non-GAAP
diluted net $ 6.13 $ 5.31 $ 5.96
income per
share
Shares used to
compute
diluted net 395 424 402
income per
share
The following table shows Adobe’s third quarter fiscal year 2026 GAAP tax rate
reconciled to the non-GAAP tax rate included in this release.
Third Quarter
Fiscal 2026
Effective income tax rate:
GAAP effective income tax rate 22.5 %
Income tax adjustments -1.5
Stock-based and deferred compensation -3.0
expense
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
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Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions
The following tables show Adobe's fourth quarter fiscal year 2026 financial
targets and assumptions reconciled to non-GAAP financial targets and assumptions
included in this release.
(Shares in
millions) Fourth Quarter
Diluted net Fiscal 2026
income per share: Low High
──────────────────────────────────────────────────────────────────────────────
GAAP diluted net $ 4.65 $ 4.70
income per share
Stock-based and
deferred 1.48 1.48
compensation
expense
Amortization of 0.16 0.16
intangibles
Acquisition-rela… 0.08 0.08
expenses
Income tax -0.07 -0.07
adjustments
Non-GAAP diluted
net income per $ 6.30 $ 6.35
share
Shares used to
compute diluted 389 389
net
income per share
Fourth Quarter
Fiscal 2026
Operating margin:
GAAP operating margin 34.0 %
Stock-based and deferred compensation 8.6
expense
Amortization of intangibles 0.9
Acquisition-related expenses 0.5
Non-GAAP operating margin 44.0 %
Fourth Quarter
Fiscal 2026
Effective income tax rate:
GAAP effective income tax rate 22.0 %
Income tax adjustments -1.0
Stock-based and deferred compensation -3.0
expense
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
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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
Diluted net income per share: Low High
──────────────────────────────────────────────────────────────────────────────
GAAP diluted net income per $ 18.12 $ 18.17
share
Stock-based and deferred
compensation 5.42 5.42
expense
Amortization of intangibles 0.51 0.51
Impairment of goodwill 0.18 0.18
Loss contingency 0.23 0.23
Acquisition-related expenses 0.14 0.14
Investment (gains) losses, net -0.04 -0.04
Income tax adjustments -0.11 -0.11
Non-GAAP diluted net income $ 24.45 $ 24.50
per share
Shares used to compute diluted
net 400 400
income per share
Fiscal Year 2026
Operating margin:
GAAP operating margin 35.0 %
Stock-based and deferred compensation 8.3
expense
Amortization of intangibles 0.8
Impairment of goodwill 0.3
Loss contingency 0.4
Acquisition-related expenses 0.2
Non-GAAP operating margin 45.0 %
Fiscal Year 2026
Effective income tax rate:
GAAP effective income tax rate 22.5 %
Income tax adjustments -1.5
Stock-based and deferred compensation -3.0
expense
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
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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 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.
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