ADBE Q2 2026 Earnings

Call Details

• Call Title: Adobe Q2 2026 Earnings Call
• Date: June 11, 2026 21:00 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)
  • Steve Day (Senior Vice President, Corporate Finance and CFO of Customer Experience Orchestration)

Call Summary

Financial Performance

• Adobe reported Q2 revenue of $6.62B, representing 11% year-over-year growth on a constant currency basis and 13% as reported.
• GAAP diluted EPS for Q2 was $4.25, representing 8% year-over-year growth, and non-GAAP EPS was $5.96, representing 18% year-over-year growth.
• Total Adobe ending ARR exited Q2 at $27.1B, growing 12.5% year over year and including approximately $480M from SEMrush.
• Total customer group subscription revenue for Q2 was $6.39B, growing 14% year over year or 12% in constant currency, including approximately $40M from SEMrush.
• RPO exited the quarter at $22.27B, with RPO and CRPO each growing 13% year over year or 12% in constant currency.
• Operating cash flow in Q2 was $2.17B and ending cash and short-term investments were $5.63B.
• Adobe repurchased approximately 8.5M shares in Q2 and has about $27B remaining under authorization, which includes a recently announced $25B authorization.
• Q2 included a $70M non-cash goodwill impairment charge affecting GAAP results, representing $0.17 per share.

Guidance

• Adobe raised FY26 revenue and non-GAAP EPS targets and now expects total FY26 revenue of $26.5B to $26.6B.
• FY26 total Adobe ending ARR growth target is 10.2% year over year versus a FY26 beginning book of business of $25.66B, and this target includes the SEMrush book of business and the strategic freemium choice.
• Adobe's FY26 non-GAAP operating margin target is approximately 45%, with a GAAP tax rate assumption of approximately 22.5% and a non-GAAP tax rate assumption of approximately 18%.
• Adobe provided Q3 FY26 targets of $6.67B to $6.72B in total revenue, Business Professionals & Consumers subscription revenue of $1.87B to $1.89B, and Creative & Marketing Professionals subscription revenue of $4.61B to $4.64B.
• Q3 EPS targets are gap EPS of $4.40 to $4.45 and non-gap EPS of $6.05 to $6.10, with a Q3 non-gap operating margin assumption of approximately 44%.
• The updated FY26 targets explicitly reflect both the SEMrush acquisition and the strategic decision to accelerate MAU/freemium growth while deferring some Creative Cloud line optimizations.
• The company stated expectations assume current macroeconomic conditions and seasonality, with some ARR impact pushed into H2 due to the freemium emphasis.