Adobe reported record Q1 results driven by strong subscription revenue growth and AI-first ARR tripling year-over-year. The company demonstrated robust operating cash flow generation and reaffirmed its full-year targets, indicating confidence in continued profitable growth.
Record Q1 revenue of $6.40 billion, representing 12% year-over-year growth.
positiveAI-first ARR more than tripled year-over-year, indicating strong adoption of AI capabilities.
positiveRecord Q1 cash flows from operations of $2.96 billion, up from $2.48 billion in the prior year.
positiveTotal subscription revenue increased 13% year-over-year to $6.17 billion.
positiveNon-GAAP diluted EPS of $6.06, exceeding GAAP diluted EPS of $4.60.
positiveGAAP operating income grew 11.8% to $2.42 billion, while non-GAAP operating income grew 11.8% to $3.04 billion, indicating that the growth in operating income was primarily driven by non-GAAP adjustments.
attentionThe company is undergoing a CEO transition, with Shantanu Narayen stepping down after 18 years. While he will remain Chair, this represents a significant leadership change.
attentionGuidance for Q2 FY2026 GAAP diluted EPS is $4.35-$4.40, a decrease from Q1 FY2026 GAAP diluted EPS of $4.60.
attentionThe acquisition of Semrush Holdings, Inc. is still pending regulatory approvals and other customary closing conditions.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Total Customer Group | N/A | — | — | — | +12.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Adobe delivered record Q1 results with AI-first ARR more than tripling year over year and subscription revenue growing 13 percent.
Our mission to empower everyone to create represents an even larger opportunity as content powers all experiences in the AI era.
Adobe delivered 13 percent subscription revenue growth and record Q1 cash flow of $2.96 billion.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.