SECURITIES AND EXCHANGE COMMISSION

Transcript

1. #1prepared remarks

   Investor Relations Contact Doug Clark Adobe ir@adobe.com Public Relations Contact Ashley Levine Adobe adobepr@adobe.com FOR IMMEDIATE RELEASE Adobe Reports Record Q3 Results • Adobe AI-first ARR grew more than 150% year over year • Achieves major milestone of 1 billion monthly active users (MAU) across creativity and productivity solutions

2. #2Shantanu Narayen · chair and CEO, Adobe

   Adobe delivered record Q3 results, reflecting the strength of our AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience,

3. #3prepared remarks

   Financial Targets The following table summarizes Adobe’s fourth quarter FY2026 targets, which assumes current macroeconomic conditions: | | | | | | | | | Total revenue | $6.80 billion to $6.85 billion | Business Professionals & Consumers subscription revenue | $1.93 billion to $1.95 billion | Creative & Marketing Professionals subscription revenue | $4.665 billion to $4.695 billion | Earnings per share 1 | GAAP: $4.65 to $4.70 | Non-GAAP: $6.30 to $6.35 |

4. #4prepared remarks

   1 Targets assume non-GAAP operating margin of ~44.0%, GAAP tax rate of ~22.0%, non-GAAP tax rate of ~18.0% and diluted share count of ~389 million for fourth quarter FY2026. The following table summarizes Adobe’s updated FY2026 targets: | | | | | | | | | Total revenue | $26.576 billion to $26.626 billion | Business Professionals & Consumers subscription revenue | $7.470 billion to $7.490 billion | Creative & Marketing Professionals subscription revenue | $18.242 billion to $18.272 billion | Total Adobe ending ARR growth | 10.2% year over year | Earnings per share 2 | GAAP: $18.12 to $18.17 | Non-GAAP: $24.45 to $24.50 |

5. #5within the meaning of

   forward-looking statements

6. #6prepared remarks

   About Adobe Adobe (Nasdaq: ADBE) empowers everyone to create through industry-leading platforms and tools that unleash creativity, productivity and personalized customer experiences. For more information, visit www.adobe.com . ### ©2026 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in the United States and/or other countries. All other trademarks are the property of their respective owners. 3

7. #7prepared remarks

   Condensed Consolidated Statements of Income (In millions, except per share data; unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | August 28, 2026 | | August 29, 2025 | | August 28, 2026 | | August 29, 2025 | Revenue: | | | | | | | | Subscription | $ | 6,582 | | | $ | 5,791 | | | $ | 19,196 | | | $ | 16,915 | | Product | 67 | | | 68 | | | 246 | | | 251 | | Services and other | 111 | | | 129 | | | 334 | | | 409 | | Total revenue | 6,760 | | | 5,988 | | | 19,776 | | | 17,575 | | | | | | | | | | Cost of revenue: | | | | | | | | Subscription | 633 | | | 510 | | | 1,759 | | | 1,505 | | Product | 5 | | | 5 | | | 16 | | | 17 | | Services and other | 125 | | | 127 | | | 367 | | | 380 | | Total cost of revenue | 763 | | | 642 | | | 2,142 | | | 1,902 | | | | | | | | | | Gross profit | 5,997 | | | 5,346 | | | 17,634 | | | 15,673 | | | | | | | | | | Operating expenses: | | | | | | | | Research and development | 1,288 | | | 1,088 | | | 3,596 | | | 3,196 | | Sales and marketing | 1,827 | | | 1,639 | | | 5,419 | | | 4,760 | | General and administrative | 488 | | | 408 | | | 1,497 | | | 1,152 | | | | | | | | | | | | |…

8. #8prepared remarks

   Condensed Consolidated Balance Sheets (In millions; unaudited) | | | | | | | | | | | | | August 28, 2026 | | November 28, 2025 | ASSETS | | | | | | | | Current assets: | | | | Cash and cash equivalents | $ | 4,359 | | | $ | 5,431 | | Short-term investments | 1,280 | | | 1,164 | | Trade receivables, net of allowances for doubtful accounts of $12 and $13, respectively | 2,081 | | | 2,344 | | Prepaid expenses and other current assets | 1,438 | | | 1,224 | | Total current assets | 9,158 | | | 10,163 | | | | | | Property and equipment, net | 1,870 | | | 1,873 | | Operating lease right-of-use assets, net | 286 | | | 312 | | Goodwill | 14,037 | | | 12,857 | | Other intangibles, net | 956 | | | 495 | | | | | | Deferred income taxes | 1,928 | | | 2,186 | | Other assets | 1,746 | | | 1,610 | | Total assets | $ | 29,981 | | | $ | 29,496 | | | | | | LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | Current liabilities: | | | | Trade payables | $ | 529 | | | $ | 417 | | Accrued expenses and other current liabilities | 2,516 | | | 2,648 | | Debt | 1,597 | | | — | | Deferred revenue | 7,094 | | | 6,905 | | Income taxes payable | 63 | | | 153 | | Operating lease …

9. #9prepared remarks

   Condensed Consolidated Statements of Cash Flows (In millions; unaudited) | | | | | | | | | | | | | Three Months Ended | | August 28, 2026 | | August 29, 2025 | Cash flows from operating activities: | | | | Net income | $ | 1,827 | | | $ | 1,772 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Depreciation, amortization and accretion | 215 | | | 208 | | Stock-based compensation | 539 | | | 497 | | | | | | | | | | | | | | | | | | Other non-cash adjustments | 71 | | | (101) | | Changes in deferred revenue | (46) | | | 200 | | Changes in other operating assets and liabilities | (83) | | | (378) | | Net cash provided by operating activities | 2,523 | | | 2,198 | | | | | | Cash flows from investing activities: | | | | Purchases, sales and maturities of short-term investments, net | (564) | | | (169) | | Purchases of property and equipment | (85) | | | (72) | | | | | | Purchases and sales of long-term investments, intangibles and other assets, net | (19) | | | (21) | | Acquisitions, net of cash acquired | — | | | (17) | | Net cash used for investing activities | (668) | | | (279) | | | | | | Cash flows from financing…

10. #10prepared remarks

    Non-GAAP Results The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release. | | | | | | | | | | | | | | | | | | | | | | (In millions, except per share data) | Three Months Ended | | | | August 28, 2026 | | August 29, 2025 | | May 29, 2026 | | | | | Operating income: | | | | | | | | | | | | | | | | | | | | GAAP operating income | $ | 2,354 | | | $ | 2,173 | | | $ | 2,238 | | | | | | Stock-based and deferred compensation expense | 544 | | | 521 | | | 556 | | | | | | Impairment of goodwill | — | | | — | | | 70 | | | | | | Amortization of intangibles | 58 | | | 79 | | | 46 | | | | | | Acquisition-related expenses | 18 | | | — | | | 5 | | | | | | Loss contingency | — | | | — | | | 30 | | | | | | | | | | | | | | | | Non-GAAP operating income | $ | 2,974 | | | $ | 2,773 | | | $ | 2,945 | | | | | | | | | | | | | | | | Net income: | | | | | | | | | | | | | | | | | | | | GAAP net income | $ | 1,827 | | | $ | 1,772 | | | $ | 1,712 | | | | | | Stock-based and deferred compensation expense | 544 | | | 521 | | | 556 | | | | | | Impairment of goodwill | — | | | — | | | 70 | | | | | | Amortization of intangibles | 58 | | | 79 | …

11. #11prepared remarks

    The following table shows Adobe’s third quarter fiscal year 2026 GAAP tax rate reconciled to the non-GAAP tax rate included in this release. | | | | | | | | | | | | | Third Quarter Fiscal 2026 | Effective income tax rate: | | | | GAAP effective income tax rate | | 22.5 | | % | Income tax adjustments | | (1.5) | | | Stock-based and deferred compensation expense | | (3.0) | | | Non-GAAP effective income tax rate (*) | | 18.0 | | % |

12. #12prepared remarks

    (*) Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028 7

13. #13prepared remarks

    Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions The following tables show Adobe's fourth quarter fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release. | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Shares in millions) | Fourth Quarter Fiscal 2026 | | Low | | | | High | Diluted net income per share: | | | | | | | | | | | | GAAP diluted net income per share | $ | 4.65 | | | | | | | | $ | 4.70 | | | Stock-based and deferred compensation expense | | 1.48 | | | | | | | | | 1.48 | | | Amortization of intangibles | | 0.16 | | | | | | | | | 0.16 | | | | | | | | | | | | | | | | | | | | | | | | | | | Acquisition-related expenses | | 0.08 | | | | | | | | | 0.08 | | | Income tax adjustments | | (0.07) | | | | | | | | | (0.07) | | | Non-GAAP diluted net income per share | $ | 6.30 | | | | | | | | $ | 6.35 | | | | | | | | | Shares used to compute diluted net income per share | 389 | | | | | | | 389 | | |

14. #14prepared remarks

    | | | | | | | | | | | | | Fourth Quarter Fiscal 2026 | Operating margin: | | | | GAAP operating margin | | 34.0 | | % | Stock-based and deferred compensation expense | | 8.6 | | | Amortization of intangibles | | 0.9 | | | Acquisition-related expenses | | 0.5 | | | Non-GAAP operating margin | | 44.0 | | % |

15. #15prepared remarks

    | | | | | | | | | | | | | Fourth Quarter Fiscal 2026 | Effective income tax rate: | | | | GAAP effective income tax rate | | 22.0 | | % | Income tax adjustments | | (1.0) | | | Stock-based and deferred compensation expense | | (3.0) | | | | | | | | | | | | | | | | | | | Non-GAAP effective income tax rate (*) | | 18.0 | | % |

16. #16prepared remarks

    (*) Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028 8

17. #17prepared remarks

    Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions (continued) The following tables show Adobe's updated annual fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release. | | | | | | | | | | | | | | | | | | | | | | | | (Shares in millions) | Fiscal Year 2026 | | Low | | High | Diluted net income per share: | | | | | | | | GAAP diluted net income per share | $ | 18.12 | | | | $ | 18.17 | | | Stock-based and deferred compensation expense | | 5.42 | | | | | 5.42 | | | Amortization of intangibles | | 0.51 | | | | | 0.51 | | | Impairment of goodwill | | 0.18 | | | | | 0.18 | | | Loss contingency | | 0.23 | | | | | 0.23 | | | Acquisition-related expenses | | 0.14 | | | | | 0.14 | | | Investment (gains) losses, net | | (0.04) | | | | | (0.04) | | | Income tax adjustments | | (0.11) | | | | | (0.11) | | | Non-GAAP diluted net income per share | $ | 24.45 | | | | $ | 24.50 | | | | | | | Shares used to compute diluted net income per share | 400 | | | | 400 | | |

18. #18prepared remarks

    | | | | | | | | | | | | | Fiscal Year 2026 | Operating margin: | | | | GAAP operating margin | | 35.0 | | % | Stock-based and deferred compensation expense | | 8.3 | | | Amortization of intangibles | | 0.8 | | | Impairment of goodwill | | 0.3 | | | Loss contingency | | 0.4 | | | Acquisition-related expenses | | 0.2 | | | Non-GAAP operating margin | | 45.0 | | % |

19. #19prepared remarks

    | | | | | | | | | | | | | Fiscal Year 2026 | Effective income tax rate: | | | | GAAP effective income tax rate | | 22.5 | | % | Income tax adjustments | | (1.5) | | | Stock-based and deferred compensation expense | | (3.0) | | | | | | | | | | | | | | | | | | | Non-GAAP effective income tax rate (*) | | 18.0 | | % |

20. #20prepared remarks

    (*) Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028 Use of Non-GAAP Financial Information Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others t…

21. #21prepared remarks

    and losses, income tax adjustments and other items that are not considered part of Adobe’s ongoing operations, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Adobe uses these non-GAAP measures in order to assess the performance of Adobe's business and for planning and forecasting in subsequent periods. Whenever such a non-GAAP measure is used, Adobe provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above. 10