Adobe Stock Earnings Reports

Q2 FY26 highlights: Adobe reported revenue of $6.62B (11% Y/Y constant currency), GAAP EPS $4.25 and non‑GAAP EPS $5.96 (18% Y/Y). Ending ARR was $27.1B (12.5% Y/Y, including ~ $480M from the Semrush acquisition). Key growth drivers were strong subscription revenue across customer groups, rapid MAU and traffic growth (Adobe.com traffic +35–50% Y/Y across segments), and accelerating AI adoption (AI‑first ARR > $500M, Firefly ARR approaching $300M). Management is shifting strategy to expand freemium funnels (Acrobat, Express, Firefly) to aggressively acquire users and build long‑term LTV, accepting a near‑term ARR headwind and deferring planned Creative Cloud price/line optimizations. Semrush closed and is being integrated to bolster brand visibility and SEO/Generative‑SEO capabilities. Management raised FY26 revenue and non‑GAAP EPS targets and reiterated disciplined investment in AI, product and go‑to‑market while Steven Day will serve as interim CFO after Dan Durn’s departure. Capital allocation: $25B new buyback authorization announced (company continues opportunistic tuck‑in M&A). Management expects the freemium pivot to depress short‑term ARR but to accelerate MAU and long‑term growth, and they continue to target mid/high‑single digit to double‑digit ARR growth depending on inclusion of Semrush and strategic choices.