ADBE earnings analysis
What we found in ADBE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Adobe reported strong Q2 results for fiscal 2026 with revenues of $6.62 billion, marking a 13% increase year-over-year, and surpassing estimates. EPS came in at $5.96, exceeding the consensus of $5.60, while total subscription revenue rose 14% year-over-year to $6.42 billion, driven by strong performance in both Creative Cloud and Acrobat offerings.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Surges
- Q2 total revenue reached $6.62 billion, up 13% from $5.87 billion in Q2 2025.
- EPS Beats Estimates
- Diluted EPS for Q2 was $5.96, exceeding estimates of $5.60 by approximately 6.43%.
- Strong ARR Growth
- Annualized recurring revenue increased by 12.5% to $27.10 billion compared to $24.08 billion a year earlier.
- Segment Revenue Outperformance
- Creative & Marketing Professionals segment had subscription revenue of $4.54 billion, a 13% increase from $4.02 billion in Q2 2025.
- Cash Flow Improvement
- Operating cash flow increased by 10% to $5.12 billion for the six months ended May 29, 2026.
- Successful Acquisition Strategy
- Recent acquisition of Semrush contributed approximately $480 million to ARR growth.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Goodwill Impairment Charge
- Recorded a goodwill impairment charge related to Publishing & Advertising, impacting Q2 results.
- Increased Operating Expenses
- Operating expenses rose 17% to $3.67 billion, outpacing revenue growth.
- Exposure to Forex Risks
- Fluctuations in foreign currency exchange rates may adversely affect financial performance.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $5.96
- Gross margin
- 89.6%
- Operating margin
- 37.8%
- Segment
- Creative & Marketing Professionals $4.54B
- Segment
- Business Professionals & Consumers $1.85B
What they said about what is next.
Management raised FY26 revenue guidance to between $26.50 billion and $26.60 billion.
The filing reads better than the one before it.
What came before.
- 10-Q · March 25, 2026
- Adobe reported strong Q1 fiscal 2026 operating results with revenue of $6,398 million (up $684 million, +12.0% YoY and +$208 million, +3.4% sequentially). Gross margin remained very high at 89.6% and operating margin…
- 10-Q · September 24, 2025
- Adobe reported solid Q3 results with revenue of $5,988 million (up from $5,408 million a year ago) and diluted EPS of $4.18 (versus $3.76 in Q3 2024). Operating income rose to $2,173 million and gross margins remained…
- 10-K · January 13, 2025
- Adobe positions itself around two strategic growth areas — Digital Media (Creative Cloud and Document Cloud) and Digital Experience (Experience Cloud) — and is aggressively embedding generative AI across products…
- 10-Q · June 26, 2024
- Adobe reported revenue of $5,309 million for the quarter ended May 31, 2024, up $493 million (10.2%) versus the prior-year quarter; diluted EPS rose to $3.49 from $2.82 a year ago. Digital Media and Digital Experience…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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