Adobe reported record second-quarter fiscal 2026 revenue of $6.62 billion for the period ended May 29, 2026, up 13% year over year, or 11% in constant currency, driven by strong demand for its AI-powered products across consumers, creators, business professionals and marketers. The company said it is raising its full-year fiscal 2026 revenue and non-GAAP earnings-per-share targets based on the quarter’s performance. CEO Shantanu Narayen said Adobe is focused on bringing new AI products to a broader set of customers and advancing its mission to “Empower Everyone to Create.”
On a per-share basis, Adobe posted diluted earnings of $4.25 on a GAAP basis and $5.96 on a non-GAAP basis. GAAP results included a $0.17 per share non-cash goodwill impairment charge tied to the Publishing & Advertising reporting unit. Operating income reached $2.24 billion under GAAP and $2.95 billion on a non-GAAP basis, while net income totaled $1.71 billion under GAAP and $2.40 billion on a non-GAAP basis.
Cash flow from operations came in at $2.17 billion. Adobe’s annualized recurring revenue at quarter end was $27.10 billion, including about $480 million from Semrush. Remaining performance obligations were $22.27 billion, and current remaining performance obligations accounted for 67% of that total. The company also repurchased about 8.5 million shares during the quarter.
Customer group subscription revenue totaled $6.39 billion, up 14% year over year, or 12% in constant currency, including about $40 million from Semrush. Within that segment, Business Professionals and Consumers generated $1.85 billion in subscription revenue, rising 16% year over year, or 15% in constant currency. Creative and Marketing Professionals delivered $4.54 billion in subscription revenue, up 13% year over year, or 11% in constant currency.
Adobe said its updated third-quarter and full-year FY2026 financial targets incorporate the acquisition of Semrush Holdings and assume current macroeconomic conditions. The company also announced a leadership change in finance: Chief Financial Officer Dan Durn will leave on June 15, 2026, to pursue another opportunity. Steve Day, senior vice president of Corporate Finance and CFO of Adobe’s Customer Experience Orchestration business unit, will become interim chief financial officer on the same date. Day has worked in finance leadership roles at Adobe for 20 years.
Adobe said it will host an earnings conference call at 2:00 p.m. Pacific Time and will post related investor materials on its investor relations website. The company also included standard forward-looking statements, noting that future results may differ because of risks including competition, AI development, macroeconomic conditions, regulation, security incidents, acquisitions and currency fluctuations.
