ADBE Q1 2026 Earnings

Call Details

• Call Title: Adobe Q1 2026 Earnings Call
• Date: March 12, 2026 at 9:00 PM UTC
• Management Team:
  • Doug Clark (Vice President of Investor Relations)
  • Shantanu Narayen (Chair and Chief Executive Officer)
  • David Wadhwani (President of Creativity and Productivity)
  • Anil Chakravarthy (President of Customer Experience Orchestration)
  • Dan Dern (Executive Vice President and Chief Financial Officer)

Call Summary

Financial Performance

• Adobe reported revenue of $6.40B in Q1, growing 12% year-over-year as reported and 11% in constant currency.
• GAAP EPS was $4.60 and non-GAAP EPS was $6.06, improving 11% and 19% year-over-year, respectively.
• GAAP operating margin was 37.8% and non-GAAP operating margin was 47.4% for the quarter.
• Total Adobe ending ARR was $26.06B, increasing 10.9% year-over-year.
• Total customer group subscription revenue was $6.17B, growing 13% year-over-year or 12% in constant currency.
• RPO exited the quarter at $22.22B, up 13% year-over-year, and CRPO grew 12% as reported or 11% in constant currency.
• Operating cash flow was a Q1 record of $2.96B and ending cash and short-term investments were $6.89B.
• The company repurchased approximately 8.1M shares in the quarter and has $3.89B remaining of its $25.0B buyback authorization.

Guidance

• Q2 fiscal 2026 revenue target is $6.43B to $6.48B.
• Q2 business professionals and consumers subscription revenue target is $1.80B to $1.82B.
• Q2 creative and marketing professional subscription revenue target is $4.41B to $4.44B.
• Q2 GAAP EPS is guided to $4.35 to $4.40 and non-GAAP EPS is guided to $5.80 to $5.85.
• Q2 non-GAAP operating margin is targeted at approximately 44.5% with a non-GAAP tax rate of approximately 18%.
• FY26 targets are being reaffirmed and the guidance excludes the expected contribution from SEMrush, which the company expects to close in Q2 subject to regulatory approvals.
• Guidance assumes current macroeconomic conditions and excludes SEMrush contribution until close.