ADBE 8-K: Smart Summary

Adobe reported record Q2 FY2026 revenue of $6.6B for the quarter ended May 29, 2026, representing 13% year-over-year growth. The company raised its full-year FY2026 total revenue and non-GAAP EPS targets. The filing also discloses the departure of CFO Dan Durn effective June 15, 2026, with Steve Day named interim CFO.

• Total revenue: $6.6B in Q2 FY2026, up 13% YoY (11% in constant currency)
• GAAP operating income: $2.2B vs. $2.1B in Q2 FY2025; non-GAAP operating income: $3B vs. $2.7B
• GAAP net income: $1.7B vs. $1.7B in Q2 FY2025; non-GAAP net income: $2.4B vs. $2.2B
• GAAP diluted EPS: $4.25 vs. $3.94 in Q2 FY2025; non-GAAP diluted EPS: $5.96 vs. $5.06 (GAAP results reflect a $0.17 per share non-cash goodwill impairment charge related to the Publishing & Advertising reporting unit)
• Cash flows from operations: $2.2B vs. $2.2B in Q2 FY2025
• Total subscription revenue: $6.4B vs. $5.6B in Q2 FY2025
• GAAP effective income tax rate: 23.5%; non-GAAP effective income tax rate: 18.0%

• Total Customer Group subscription revenue: $6.4B, up 14% YoY (12% in constant currency), including approximately $40M from Semrush
• Creative & Marketing Professionals subscription revenue: $4.5B, up 13% YoY (11% in constant currency)
• Business Professionals & Consumers subscription revenue: $1.9B, up 16% YoY (15% in constant currency)
• Product revenue: $89M vs. $88M in Q2 FY2025
• Services and other revenue: $113M vs. $144M in Q2 FY2025
• Total Adobe ARR exiting the quarter: $27.1B, including approximately $480M from Semrush
• AI-first ARR triples year over year and exceeds $500M

• Adobe repurchased approximately 8.5 million shares during Q2 FY2026
• Cash used for repurchases of common stock: $2.1B in Q2 FY2026 vs. $3.5B in Q2 FY2025
• Cash and cash equivalents at end of Q2 FY2026: $4.9B vs. $5.4B at November 28, 2025
• Short-term investments: $707M; total current debt: $1.8B; long-term debt: $4.8B
• Remaining Performance Obligations (RPO): $22.3B exiting the quarter; Current RPO (cRPO): 67%
• Acquisitions, net of cash acquired: $1.6B in Q2 FY2026 (Semrush)
• Proceeds from issuance of debt: $493M in Q2 FY2026

• "Adobe delivered record revenue of $6.6B in Q2 reflecting strong AI-driven demand across our customer groups and we are raising our full-year fiscal 2026 revenue and non-GAAP EPS targets on the strength of that performance." — Shantanu Narayen, chair and CEO
• "Steve has been a key member of our finance organization for two decades, and his deep understanding of Adobe's business will be critical as we execute our strategy to deliver AI innovations to a broader set of customers across creativity, productivity and customer experience orchestration." — Shantanu Narayen, chair and CEO

• Q3 FY2026 total revenue target: $6.7B to $6.7B
• Q3 FY2026 Business Professionals & Consumers subscription revenue: $1.9B to $1.9B
• Q3 FY2026 Creative & Marketing Professionals subscription revenue: $4.6B to $4.6B
• Q3 FY2026 GAAP EPS: $4.40 to $4.45; non-GAAP EPS: $6.05 to $6.10 (assumes non-GAAP operating margin of ~44.0%, GAAP tax rate of ~23.0%, non-GAAP tax rate of ~18.0%, diluted share count of ~395 million)
• Updated FY2026 total revenue target: $26.5B to $26.6B
• Updated FY2026 Business Professionals & Consumers subscription revenue: $7.4B to $7.5B
• Updated FY2026 Creative & Marketing Professionals subscription revenue: $18.2B to $18.3B
• Updated FY2026 GAAP EPS: $17.90 to $18.00; non-GAAP EPS: $24.35 to $24.45 (assumes non-GAAP operating margin of ~45.0%, GAAP tax rate of ~22.5%, non-GAAP tax rate of ~18.0%, diluted share count of ~399 million)
• FY2026 Total Adobe ending ARR growth target: 10.2% year over year

• Interim Chief Financial Officer Steven Day — appointed June 11, 2026, effective immediately upon Mr. Durn's departure (June 15, 2026); age 58; joined the Company in 2006; has served as SVP, Customer Experience Orchestration Business Unit CFO and Corporate Finance since 2023; previously served as VP, Digital Experience Business Unit CFO from 2021 to 2023, VP, Corporate Finance from 2020 to 2021, and Interim Head of Investor Relations from October 2024 to June 2025; appointment not pursuant to any arrangement or understanding with respect to any other person

• Chief Financial Officer and Executive Vice President, Finance, Technology, Security and Operations Daniel Durn — resigned effective June 15, 2026; notified the Company of his decision on June 8, 2026

• On June 11, 2026, Adobe Inc. issued a press release announcing financial results for its second quarter fiscal year 2026 ended May 29, 2026
• The press release is furnished as Exhibit 99.1 and is incorporated by reference
• The filing includes non-GAAP measures such as adjusted/constant currency revenue growth rates, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, non-GAAP operating margin, and non-GAAP tax rate
• Non-GAAP exclusions include: stock-based and deferred compensation, amortization of intangibles, acquisition-related expenses, investment gains/losses, goodwill impairment, accrued loss contingencies, lease-related asset impairments, and income tax adjustments
• Adobe applies a fixed long-term projected non-GAAP tax rate based on projections and currently available information for fiscal 2026 through 2028