Adobe (ADBE) Q1 FY2026 earnings: revenue $6.4 billion, up 12.0% on the year

Adobe Inc. (ADBE) reported revenue of $6.4 billion for Q1 FY2026, the quarter ended 27 February 2026, up 12.0% on the same quarter a year earlier. Net income was $1.9 billion, up 4.3% on the year, and diluted earnings per share $4.60. The figures are the company's own, from the 10-Q it filed with the SEC on 25 March 2026.

Revenue

$6.4 billion

+12.0% on the year · +3.3% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

37.8%

37.9% a year earlier

Q2 FY2024Q1 FY2026

Net income

$1.9 billion

+4.3% on the year · +1.8% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$4.60

+11.1% on the year · +3.4% on the quarter

Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 10 new, 11 kept.

Revenue rose 12% to $6.40 billion: Revenue was $6.40 billion, up 12% year over year, or 11% in constant currency. Subscription revenue was $6,198 million against $5,483 million a year earlier. Product and services revenue declined.
Diluted EPS $4.60 GAAP, $6.06 non-GAAP: Diluted EPS was $4.60 on a GAAP basis and $6.06 on a non-GAAP basis, against $4.14 and $5.08 a year earlier. The prior release had set first-quarter non-GAAP EPS targets of $5.85 to $5.90.
RPO $22.22 billion, 67% current: Remaining performance obligations were $22.22 billion at quarter end, with 67% current. The prior release gave RPO of $22.52 billion and cRPO of 65% at fiscal year end.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	6,398	6,194	5,714	+3.3%	+12.0%
Cost of revenue	664	649	622	+2.3%	+6.8%
Gross profit	5,734	5,545	5,092	+3.4%	+12.6%
Gross margin	89.6%	89.5%	89.1%
Operating income	2,418	2,261	2,163	+6.9%	+11.8%
Operating margin	37.8%	36.5%	37.9%
Interest expense	63.0	66.0	62.0	-4.5%	+1.6%
Pre-tax income	2,422	2,264	2,182	+7.0%	+11.0%
Income tax	533	408	371	+30.6%	+43.7%
Effective tax rate	22.0%	18.0%	17.0%
Net income	1,889	1,856	1,811	+1.8%	+4.3%
Net margin	29.5%	30.0%	31.7%
Diluted EPS	$4.60	$4.45	$4.14	+3.4%	+11.1%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	2,958	3,160	2,482	-6.4%	+19.2%
Capital expenditure	37.0	34.0	26.0	+8.8%	+42.3%
Free cash flow	2,921	3,126	2,456	-6.6%	+18.9%
Free cash flow margin	45.7%	50.5%	43.0%
Cash from investing	474	-146	-484
Cash from financing	-2,544	-2,555	-2,841
Depreciation and amortisation	174	184	217	-5.4%	-19.8%
Share-based compensation	509	489	475	+4.1%	+7.2%
Buybacks	2,478	2,474	3,250	+0.2%	-23.8%
Diluted shares, weighted	411m	417m	438m	-1.5%	-6.1%
Shares outstanding at period end	406m	413m	435m	-1.7%	-6.7%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	11,433	11,623	13,095	-1.6%	-12.7%
Debt	6,228	6,210	6,155	+0.3%	+1.2%
Operating lease liabilities	344	361	334	-4.7%	+3.0%
Other liabilities	11,699	11,302	10,371	+3.5%	+12.8%
Total liabilities and equity	29,704	29,496	29,955	+0.7%	-0.8%
Fixed assets	1,852	1,873	1,893	-1.1%	-2.2%
Goodwill	12,869	12,857	12,777	+0.1%	+0.7%
Intangible assets	454	495	706	-8.3%	-35.7%
Investments	558	1,164	677	-52.1%	-17.6%
Cash and equivalents	6,332	5,431	6,758	+16.6%	-6.3%
Receivables	2,092	2,344	1,973	-10.8%	+6.0%
Other assets	5,547	5,332	5,171	+4.0%	+7.3%
Total assets	29,704	29,496	29,955	+0.7%	-0.8%

Questions

What was Adobe's revenue in Q1 FY2026?

Adobe (ADBE) reported revenue of $6.4 billion for Q1 FY2026, the quarter ended 27 February 2026, up 12.0% on the same quarter a year earlier.

How much did Adobe earn in Q1 FY2026?

Net income for Q1 FY2026 was $1.9 billion, up 4.3% on the year, and diluted earnings per share $4.60.

When did Adobe report Q1 FY2026 results?

Adobe filed its 10-Q for the quarter ended 27 February 2026 with the SEC on 25 March 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	4,110	4,262	4,386	4,433	4,525	4,655	4,816	4,890	5,048	5,182	5,309	5,408	5,606	5,714	5,873	5,988	6,194	6,398	6,618	6,760
Cost of revenue	507	512	539	546	568	568	572	580	634	590	598	554	616	622	638	642	649	664	715	763
Gross profit	3,603	3,750	3,847	3,887	3,957	4,087	4,244	4,310	4,414	4,592	4,711	4,854	4,990	5,092	5,235	5,346	5,545	5,734	5,903	5,997
Gross margin	88%	88%	88%	88%	87%	88%	88%	88%	87%	89%	89%	90%	89%	89%	89%	89%	90%	90%	89%	89%
Operating income	1,501	1,580	1,529	1,484	1,505	1,586	1,624	1,697	1,743	907	1,885	1,992	1,957	2,163	2,109	2,173	2,261	2,418	2,238	2,354
Operating margin	37%	37%	35%	33%	33%	34%	34%	35%	35%	18%	36%	37%	35%	38%	36%	36%	37%	38%	34%	35%
Interest expense	28.0	28.0	28.0	28.0	28.0	32.0	26.0	27.0	28.0	27.0	41.0	51.0	50.0	62.0	68.0	67.0	66.0	63.0	65.0	66.0
Pre-tax income	1,468	1,543	1,492	1,456	1,517	1,598	1,650	1,743	1,808	968	1,930	2,042	1,991	2,182	2,101	2,187	2,264	2,422	2,238	2,357
Tax rate	16%	18%	21%	22%	22%	22%	22%	20%	18%	36%	18%	18%	15%	17%	20%	19%	18%	22%	24%	22%
Net income	1,233	1,266	1,178	1,136	1,176	1,247	1,295	1,403	1,483	620	1,573	1,684	1,683	1,811	1,691	1,772	1,856	1,889	1,712	1,827
Net margin	30%	30%	27%	26%	26%	27%	27%	29%	29%	12%	30%	31%	30%	32%	29%	30%	30%	30%	26%	27%
Diluted EPS	$2.57	$2.66	$2.49	$2.42	$2.53	$2.71	$2.82	$3.05	$3.23	$1.36	$3.49	$3.76	$3.79	$4.14	$3.94	$4.18	$4.45	$4.60	$4.25	$4.62
Operating cash flow	2,066	1,769	2,040	1,704	2,325	1,693	2,139	1,873	1,597	1,174	1,940	2,021	2,921	2,482	2,191	2,198	3,160	2,958	2,165	2,523
Capital expenditure	99.0	100	126	125	91.0	101	121	91.0	47.0	37.0	41.0	57.0	48.0	26.0	47.0	72.0	34.0	37.0	58.0	85.0
Free cash flow	1,967	1,669	1,914	1,579	2,234	1,592	2,018	1,782	1,550	1,137	1,899	1,964	2,873	2,456	2,144	2,126	3,126	2,921	2,107	2,438
Buybacks	1,000	2,400	1,200	1,200	1,750	1,400	1,000	1,000	1,000	2,000	2,500	2,500	2,500	3,250	3,500	2,057	2,474	2,478	2,111	2,232
Shares outstanding	475m	472m	471m	467m	462m	459m	456m	456m	455m	453m	449m	445m	441m	435m	427m	420m	413m	406m	399m	391m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 27 February 2026, filed 25 March 2026: the filing.