Adobe 8-K

PositiveEarningsCEO/CFO changeNew guidance

CEO succession search begins; Shantanu Narayen will hand off the role once a successor is appointed and remain Board chair.

Filed 2026-03-12 16:09 ET

Summary

Q1 FY2026 results with Q2 targets and a CEO succession announcement. Revenue rose 12% Y/Y, while AI-first ARR more than tripled. Shantanu Narayen plans to transition as CEO after a successor is appointed; he will remain CEO until then and continue as Board chair. Adobe has begun an internal and external search, led by a special committee chaired by Lead Independent Director Frank Calderoni.

Key Figures

Metric Q1 2026
Revenue $6.40B, +12% Y/Y
Gross margin 89.6%, vs 89.1%
Operating income, GAAP $2.42B, +12% Y/Y
Operating income, non-GAAP $3.04B, +12% Y/Y
Net income, GAAP $1.89B, +4% Y/Y
Net income, non-GAAP $2.49B, +12% Y/Y
Diluted EPS, GAAP $4.60, +11% Y/Y
Diluted EPS, non-GAAP $6.06, +19% Y/Y
Operating cash flow $2.96B, +19% Y/Y
Total Adobe ARR $26.06B
  • Customer Group subscription revenue was $6.17B, +13% Y/Y; RPO was $22.22B and cRPO was 67%. Adobe said AI-first ARR more than tripled Y/Y.
  • Adobe repurchased approximately 8.1M shares for $2.48B; diluted weighted-average shares fell to 411M from 438M. Cash was $6.33B at quarter-end, and total debt was $6.23B.

Guidance

Metric Period Guidance Prior Direction
Total revenue Q2 2026 $6.43B-$6.48B — —
Business Professionals & Consumers subscription revenue Q2 2026 $1.80B-$1.82B — —
Creative & Marketing Professionals subscription revenue Q2 2026 $4.41B-$4.44B — —
Diluted EPS, GAAP Q2 2026 $4.35-$4.40 — —
Diluted EPS, non-GAAP Q2 2026 $5.80-$5.85 — —
Operating margin, GAAP Q2 2026 35.0% — —
Operating margin, non-GAAP Q2 2026 44.5% — —
Effective tax rate, GAAP Q2 2026 22.5% — —
Effective tax rate, non-GAAP Q2 2026 18.0% — —
Diluted share count Q2 2026 402M — —

FY2026 targets reaffirmed; figures not restated.

Investor Takeaways

  • Watch for the successor announcement and the timing of Narayen’s CEO transition.
  • Compare Q2 results with the revenue, subscription revenue and EPS target ranges.

The summary is written by an AI model reading the filing.

Model 005 · prompt 8bef31e277 · 2026-10-14 16:48:37Z

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