ADBE · Q2 2026 Earnings

Bullish

Adobe Inc.

Reported June 11, 2026

30-second summary

Q2 revenue grew 13% YoY to $6.62B, beating Adobe's own guide by ~$140M and consensus by 2.6%; non-GAAP EPS of $5.96 cleared the high end of the guide by $0.11 and consensus by 2.2%. GAAP EPS of $4.25 includes a $0.17 non-cash goodwill impairment charge tied to the Publishing & Advertising reporting unit; ex-impairment GAAP EPS of $4.42 was above the $4.35–$4.40 guide high end. AI-first ARR crossed $500M (tripled YoY) — the first hard dollar figure Adobe has put on the AI-first cohort — and FY26 revenue target was raised to $26.50–$26.60B with non-GAAP EPS target raised to $24.35–$24.45. Semrush closed in the quarter, contributing ~$480M to ending ARR and ~$40M to Total Customer Group subscription revenue. Material non-financial disclosure: CFO Dan Durn is departing June 15, 2026; Steve Day (SVP Corporate Finance, 20-year Adobe finance veteran) takes over as interim CFO. The tension from the prior two prints is unresolved: despite the across-the-board beat, total Adobe ARR growth for FY26 was reaffirmed at 10.2% — management still won't underwrite an AI-driven ARR acceleration even as AI-first ARR triples.

Headline numbers

EPS

Q2 FY2026

$5.96

+2.2% vs est.

Revenue

Q2 FY2026

$6.62B

+13.0% YoY

+2.6% vs est.

Gross margin

Q2 FY2026

89.2%

Free cash flow

Q2 FY2026

$2.11B

Operating margin

Q2 FY2026

33.8%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$6.62B	$5.87B	+12.7%	$6.40B	+3.4%
EPS	$5.96	$5.06	+17.8%	$6.06	-1.7%
Gross margin	89.2%	89.1%	+10bps	89.6%	-40bps
Operating margin	33.8%	35.9%	-210bps	37.8%	-400bps
Free cash flow	$2.11B	$2.14B	-1.7%	—	—

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	$6.43 billion to $6.48 billion	$6.62 billion	+$0.14 billion above high end of guide	Beat
Non-GAAP EPS	Q2 FY2026	$5.80 to $5.85	$5.96	+$0.11 above high end of guide	Beat
Business Professionals & Consumers subscription revenue	Q2 FY2026	$1.80 billion to $1.82 billion	$1.85 billion	+$0.03 billion above high end of guide	Beat
Creative & Marketing Professionals subscription revenue	Q2 FY2026	$4.41 billion to $4.44 billion	$4.54 billion	+$0.10 billion above high end of guide	Beat
Non-GAAP operating margin	Q2 FY2026	approximately 44.5%	44.5%	in-line	Met

New guidance

Metric	Period	Guide	YoY
GAAP EPS	FY2026	$17.90 to $18.00	—
Business Professionals & Consumers subscription revenue	FY2026	$7.44 billion to $7.48 billion	—
Creative & Marketing Professionals subscription revenue	FY2026	$18.21 billion to $18.27 billion	—
Revenue	Q3 FY2026	$6.67 billion to $6.72 billion	+11.3% to +12.1% YoY
Non-GAAP EPS	Q3 FY2026	$6.05 to $6.10	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	—	$26.50 billion to $26.60 billion	—	Raised
Non-GAAP EPS	FY2026	—	$24.35 to $24.45	—	Raised

Segment performance

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Business Professionals & Consumers	$1.85B	—	+16.0%
Creative & Marketing Professionals	$4.54B	—	+13.0%
Subscription Revenue	$6.42 billion	—	—

Platform metrics

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Total ARR	$27.10 billion	—	—
AI-first ARR	$500 million+	—	—
Remaining Performance Obligations (RPO)	$22.27 billion	$19.69B	—
Current RPO (% of total RPO)	67%	—	—

Profitability

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Non-GAAP Operating Margin	44.5%	45.5%	—
Operating Cash Flow	$2.17 billion	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Share Repurchases	8.5 million shares	8.6M shares	—

Management tone

Transcript not available for this print — tone analysis based on press-release framing and prepared-statement language quoted in the release.

Narrative arc (from prior briefs): Q4 FY25 AI-influenced as dominant business metric → Q1 FY26 MAU and credit consumption as leading indicators → Q2 FY26 AI-first ARR as a hard dollar number.

The headline framing in the press release — "Adobe raises FY26 total revenue and non-GAAP EPS targets" combined with "AI-first ARR triples year over year and exceeds $500 million" — represents the cleanest articulation yet of the bull thesis: AI-first is now a quantified $500M+ book, it's growing 3x YoY, and management is willing to raise the FY26 revenue and EPS targets on that strength (with Semrush ARR contribution baked in). That's a notable hardening from Q1's "more than tripled YoY" with no dollar floor and from Q4 FY25's "AI-influenced ARR exceeds one-third of book" framing that bears criticized as fractional sleight of hand.

What did not change: the FY26 total Adobe ARR growth guide. Adobe held it at 10.2% for the third consecutive quarter — even with ~$480M of Semrush ARR now in the base. The structural read from Q1 — that management views the ARR slope as constrained by freemium MAU dynamics rather than by demand — appears intact. If anything, holding 10.2% while absorbing Semrush ARR implies a slight downward revision to the organic ARR growth assumption, which sharpens rather than softens the bear concern.

Answers to last quarter's watch list

Whether Q2 non-GAAP operating margin guide of ~44.5% holds or compresses further. Q2 non-GAAP operating margin came in at exactly 44.5%, in-line with the guide. But the Q3 guide assumes ~44.0% — a further 50bps step-down — and the FY26 assumption of ~45.0% implies Q4 has to snap back. The trajectory is guided lower in Q3, not stable. Status: Resolved negatively (margin is structurally lower and still stepping down in Q3)

AI-first ARR — first hard dollar figure. Resolved. AI-first ARR exceeded $500M, tripling YoY, disclosed explicitly in the press-release headline. This is the first quarter Adobe has put a dollar floor on AI-first ARR after three quarters of qualitative-only framing. Status: Resolved positively

Generative credit consumption — does the 45% QoQ pace hold? Press release does not disclose the Q2 QoQ generative credit consumption growth rate. This metric was a transcript-driven disclosure in Q1 and is not surfaced in the press release. Status: Continue monitoring (awaiting transcript)

Semrush close confirmation and first ARR contribution disclosure. Resolved positively. Semrush closed in Q2, contributing ~$480M to total Adobe ending ARR and ~$40M to Q2 Total Customer Group subscription revenue. The FY26 targets fold in Semrush economics explicitly. Status: Resolved positively

Stock business decline rate — does the ~$450M book stabilize or accelerate down? The press release does not address the stock-business trajectory directly. Status: Continue monitoring (awaiting transcript)

FY26 ARR growth guide reaffirmation versus raise at Q2 print. Resolved negatively. Total Adobe ending ARR growth for FY26 was reaffirmed at 10.2% YoY — the third consecutive print at this level despite revenue and EPS raises on each, and despite ~$480M of incremental Semrush ARR now in the base. Management raised the FY26 revenue and non-GAAP EPS targets, but explicitly did not nudge the ARR exit rate. The bear concern hardens: AI-first ARR can triple to $500M, Semrush adds $480M, and Adobe still won't underwrite a faster total ARR exit. Status: Resolved negatively

What to watch into next quarter

Q3 FY26 revenue against the +11.4–12.2% YoY implied guide (vs $5.99B base). Q2 beat the guide by $140M (~2.2% above high end). A Q3 print above $6.80B would suggest the AI-driven beat magnitude is widening; a print at or below $6.72B would mean management has caught up to the true run-rate after the FY26 raise.

Whether FY26 total Adobe ARR growth guide is finally raised at the Q3 print. Adobe has now reaffirmed 10.2% for three consecutive quarters while raising revenue and EPS twice and absorbing Semrush ARR. A fourth consecutive reaffirmation at the Q3 print would be conclusive evidence that management views ARR exit as structurally decoupled from AI-first traction. A raise to 10.5%+ would close the long-running gap between the AI narrative and the headline ARR slope.

AI-first ARR — next dollar marker. $500M+ tripling YoY this quarter sets a forward bar of roughly $650–750M at Q3 (continued 3x YoY would imply much higher). Watch whether Adobe sustains the hard-dollar disclosure regime now that it has started, or reverts to qualitative framing.

CFO transition — does "interim" become permanent for Steve Day? Adobe has not named a search process or timeline. Watch the call for tone around Durn's departure and any signal on whether Day is the long-term answer or a placeholder while a search runs.

Q3 non-GAAP operating margin against the ~44.0% guide. Q3 is guided down 50bps from Q2's 44.5% to ~44.0%. The FY26 assumption of ~45.0% requires a Q4 snap-back. Watch whether Q3 actuals hold the 44.0% line or compress further, and whether management commits to the Q4 recovery on the call.

Semrush integration trajectory. With ~$40M of Q2 revenue contribution against ~$480M of ARR contribution, Semrush is well annualized in the run-rate but only a partial quarter on the P&L. Q3 will be the first full quarter — watch for the run-rate revenue contribution and any commentary on cross-sell motion into the Adobe customer base.

GAAP EPS gap to non-GAAP ex one-timers. Q2 GAAP includes a $0.17 goodwill impairment; Q3 GAAP guide of $4.40–$4.45 vs non-GAAP $6.05–$6.10 implies a clean ~$1.65 spread without further impairments. Watch the 10-Q for any additional Publishing & Advertising commentary and whether the impairment is a one-time mark or the first of a series.

Sources

Adobe Inc. Q2 FY2026 press release: https://www.sec.gov/Archives/edgar/data/796343/000079634326000109/adbeex991q226.htm
Tapebrief Q1 FY2026, Q4 FY2025, Q3 FY2025, and Q2 FY2025 ADBE briefs (for cross-quarter guidance trajectory, watch-list comparisons, and narrative arc).

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