ADOBE INC. (ADBE)
Income Statement
Consolidated Statement of Income
ADOBE INC. (ADBE)
Three and Six Months Ended (In millions, except shares in scaled by 100,000 and per share data)
| May 29, 2026 (Q2) | May 30, 2025 (Q2) | May 29, 2026 (YTD) | May 30, 2025 (YTD) | |
|---|---|---|---|---|
| Total revenue | $6,618 | $5,873 | $13,016 | $11,587 |
| Product | $89 | $88 | $179 | $183 |
| Services and other | $113 | $144 | $223 | $280 |
| Subscription | $6,416 | $5,641 | $12,614 | $11,124 |
| Total cost of revenue | $715 | $638 | $1,379 | $1,260 |
| Subscription | $586 | $505 | $1,126 | $995 |
| Product | $5 | $6 | $11 | $12 |
| Services and other | $124 | $127 | $242 | $253 |
| Gross profit | $5,903 | $5,235 | $11,637 | $10,327 |
| Research and development | $1,198 | $1,082 | $2,308 | $2,108 |
| Sales and marketing | $1,884 | $1,626 | $3,592 | $3,121 |
| General and administrative | $546 | $377 | $1,009 | $744 |
| Amortization of intangibles | $37 | $41 | $72 | $82 |
| Total operating expenses | $3,665 | $3,126 | $6,981 | $6,055 |
| Operating income | $2,238 | $2,109 | $4,656 | $4,272 |
| Interest expense | $(65) | $(68) | $(128) | $(130) |
| Investment gains (losses), net | $18 | $2 | $23 | $8 |
| Other income (expense), net | $47 | $58 | $109 | $133 |
| Total non-operating income (expense), net | $(8) | $4 | $11 | |
| Income before income taxes | $2,238 | $2,101 | $4,660 | $4,283 |
| Provision for income taxes | $526 | $410 | $1,059 | $781 |
| Net income | $1,712 | $1,691 | $3,601 | $3,502 |
| Basic net income per share (in usd per share) | 4.26 | 3.95 | 8.86 | 8.10 |
| Shares used to compute basic net income per share (in shares) | 4,024 | 4,282 | 4,063 | 4,322 |
| Diluted net income per share (in usd per share) | 4.25 | 3.94 | 8.86 | 8.08 |
| Shares used to compute diluted net income per share (in shares) | 4,025 | 4,289 | 4,066 | 4,332 |
Balance Sheet
Consolidated Balance Sheets
ADOBE INC. (ADBE)
As of May 29, 2026 and November 28, 2025 (In millions, except shares and per share data)
| May 29, 2026 | Nov 28, 2025 | |
|---|---|---|
| Cash and cash equivalents | $4,919 | $5,431 |
| Short-term investments | $707 | $1,164 |
| Trade receivables, net of allowances for doubtful accounts of $14 and $13, respectively | $1,993 | $2,344 |
| Prepaid expenses and other current assets | $1,449 | $1,224 |
| Total current assets | $9,068 | $10,163 |
| Property and equipment, net | $1,870 | $1,873 |
| Operating lease right-of-use assets, net | $299 | $312 |
| Goodwill | $14,041 | $12,857 |
| Other intangibles, net | $1,012 | $495 |
| Deferred income taxes | $1,998 | $2,186 |
| Other assets | $1,645 | $1,610 |
| Total assets | $29,933 | $29,496 |
| Trade payables | $499 | $417 |
| Accrued expenses and other current liabilities | $2,455 | $2,648 |
| Debt | $1,843 | |
| Senior Notes | $1,349 | |
| Deferred revenue | $7,152 | $6,905 |
| Income taxes payable | $38 | $153 |
| Operating lease liabilities | $91 | $77 |
| Total current liabilities | $12,078 | $10,200 |
| Debt | $4,802 | $6,210 |
| Senior Notes | $4,802 | $6,210 |
| Deferred revenue | $98 | $125 |
| Income taxes payable | $536 | $469 |
| Operating lease liabilities | $329 | $361 |
| Other liabilities | $572 | $508 |
| Total liabilities | $18,415 | $17,873 |
| Preferred stock, $0.0001 par value; 2 shares authorized; none issued | ||
| Common stock, $0.0001 par value; 900 shares authorized; 601 shares issued; 399 and 413 shares outstanding, respectively | ||
| Additional paid-in capital | $16,416 | $15,361 |
| Retained earnings | $48,767 | $45,354 |
| Accumulated other comprehensive income (loss) | $(247) | $(245) |
| Treasury stock, at cost (202 and 188 shares, respectively) | $(53,418) | $(48,847) |
| Total stockholders’ equity | $11,518 | $11,623 |
| Total liabilities and stockholders’ equity | $29,933 | $29,496 |
Cash Flow
Consolidated Statement of Cash Flows
ADOBE INC. (ADBE)
Six Months Ended (In millions, except shares and per share data)
| May 29, 2026 (YTD) | May 30, 2025 (YTD) | |
|---|---|---|
| Net income | $3,601 | $3,502 |
| Depreciation, amortization and accretion | $367 | $426 |
| Stock-based compensation | $1,043 | $956 |
| Deferred income taxes | $111 | $(288) |
| Impairment of goodwill | $70 | |
| Other non-cash items | $76 | $35 |
| Trade receivables, net | $368 | $334 |
| Prepaid expenses and other assets | $(377) | $(221) |
| Trade payables | $15 | $7 |
| Accrued expenses and other liabilities | $(215) | $(92) |
| Income taxes payable | $(53) | $(61) |
| Deferred revenue | $117 | $75 |
| Net cash provided by operating activities | $5,123 | $4,673 |
| Purchases of short-term investments | $(796) | $(742) |
| Maturities of short-term investments | $1,265 | $242 |
| Proceeds from sales of short-term investments | $5 | $3 |
| Acquisitions, net of cash acquired | $(1,560) | |
| Purchases of property and equipment | $(95) | $(73) |
| Purchases of long-term investments, intangibles and other assets | $(62) | $(195) |
| Other investing activities, net | $3 | $3 |
| Net cash used for investing activities | $(1,240) | $(762) |
| Repurchases of common stock | $(4,589) | $(6,750) |
| Repurchase Authority - Open market repurchases | $(4,588) | $(500) |
| Repurchase Authority - Accelerated share repurchase agreements | $(6,250) | |
| Repurchase Authority | $(6,750) | |
| Proceeds from re-issuance of treasury stock | $84 | $96 |
| Taxes paid related to net share settlement of equity awards | $(214) | $(271) |
| Proceeds from issuance of debt | $493 | $1,997 |
| Repayment of debt | $(1,500) | |
| Other financing activities, net | $(173) | $(201) |
| Net cash used for financing activities | $(4,399) | $(6,629) |
| Effect of foreign currency exchange rates on cash and cash equivalents | $4 | $36 |
| Net change in cash and cash equivalents | $(512) | $(2,682) |
| Cash and cash equivalents at end of period | ||
| Cash and cash equivalents at end of period | ||
| Cash paid for income taxes, net of refunds | $1,089 | $1,182 |
| Cash paid for interest | $122 | $115 |