Adobe Systems Incorporated
ADBE.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q2
Adobe delivered record Q2 revenue of $6.62 billion (up 11% in constant currency) and non‑GAAP EPS of $5.96 (up 18% YoY), beating guidance and prompting a raise to its FY2026 revenue and EPS targets while reaffirming its FY outlook for 10.2% total ARR growth. The shift to freemium offerings has lifted Creative Freemium MAUs to more than 90 million (up >70% YoY) and propelled AI‑first ARR past $500 million, alongside the $480 million ARR from the SEMrush acquisition, underpinning the higher ARR growth trajectory.
Total Revenue
$6.62B
↑ 11% (CC)
Non-GAAP EPS (Diluted)
$5.96
↑ 17.8%
AI-First Applications ARR
>$500M
↑ 3x YoY
Creative Freemium MAUs
>90M
↑ >70% YoY
FY26 Total Revenue Guidance
$26.50B – $26.60B
Raised
What We're Watching
Strategic
Execution of Aggressive Freemium Pivot
📅
Next 1-2 Quarters
What to Monitor
The trajectory of MAU growth for key funnels (Creative Freemium grew >70% YoY) and any early qualitative or quantitative data on the LTV and conversion rates of freemium-acquired users.
Why It Matters
This is the company's defining strategic bet, sacrificing significant near-term ARR for long-term user acquisition. Validating the model's economics is critical to justifying the short-term financial impact.
Risk
Organic ARR Growth Trajectory Post-Reset
📅
Q3 & Q4 2026
What to Monitor
The quarterly performance of organic net new ARR against the newly lowered expectations, particularly the heavier Q4 weighting guided by management.
Why It Matters
After a major strategic pivot that lowered H2 guidance, failure to meet the reset organic growth targets would damage management credibility and call the viability of the freemium strategy into question.
Risk
C-Suite Leadership Transition
📅
FY2026-H2
What to Monitor
The appointment of a permanent CEO and CFO, and the market's reaction to their profiles and initial strategic communications.
Why It Matters
Navigating dual CEO and CFO transitions during a major strategic pivot creates significant execution risk and uncertainty about long-term strategic continuity.
Opportunity
SEMrush Integration & Brand Visibility Launch
📅
Next Quarter
What to Monitor
The unveiling of the integrated SEMrush offering at Cannes Lions, initial customer feedback, and any early adoption metrics for the new "brand visibility" solution.
Why It Matters
This represents Adobe's entry into a new strategic category. A successful integration could create a significant new revenue stream and deepen its enterprise marketing moat in an LLM-driven world.
Operational
Monetization of Deferred Creative Cloud Value
📅
FY2027+
What to Monitor
Commentary on the timing for reintroducing price optimizations and the adoption rate of higher-value offerings that can recapture the deferred revenue.
Why It Matters
The deferred price increases represent a significant portion of the lowered H2 organic ARR outlook. The ability to eventually capture this value is crucial to returning to higher organic growth rates.
