ADBE
Adobe Inc.347.89
-3.26-0.93%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
Freemium phase-shift sets H2 ramp
Q&A clarified Q1 ARR dampening from freemium MAU surge and steeper-than-expected stock decline on a ~$450M book—yet ex-stock ARR hit 11.2%, with Firefly ARR exceeding $250M and credits up 45% QoQ from video/audio workflow integration. Management dismissed cRPO trend shifts, affirmed freemium phase-shift yields H2 acceleration via upsell paths proven in Acrobat. CEO search spans months, prioritizing product-savvy growth leaders. Partnerships with ad giants like Meta turn rivals into ecosystem wins. Confident tone; watch freemium conversion.
Key Stats
Market Cap
147.57BP/E (TTM)
20.83Basic EPS (TTM)
16.70Dividend Yield
0%Recent Filings
8-K
Record Q1; CEO to transition
Adobe posted record Q1 FY2026 revenue of $6.40 billion, up 12% year over year, with subscription revenue at $6.17 billion rising 13% and operating cash flow hitting $2.96 billion. Yet CEO Shantanu Narayen, after 18 years, will step down once a successor is named, staying on as board chair during the search led by Frank Calderoni. Leadership transition begins now.
8-K
Exec comp programs approved
Adobe's board approved the 2026 Performance Share Program on January 26, granting execs target awards like 106,672 shares to CEO Narayen, up to 200% based on 50/50 rTSR vs. NASDAQ-100 and net new sales growth over 2026-2028, vesting January 2029 if service continues. They launched a 2026 cash incentive plan with CEO target at 200% base salary, max 310%, tied to 95% revenue/EPS thresholds plus strategic adjustments. Caps exec cash severance at 2.99x salary/bonus without shareholder vote. Ties pay to TSR and sales.
10-K
FY2025 results
Adobe delivered FY2025 revenue of $23.8B, up 11% y/y, with Digital Media at $17.6B (11% y/y) and Digital Experience $5.9B (9% y/y), fueled by 11.5% ARR growth to $25.2B as AI innovations like Firefly and Acrobat Studio accelerated subscriptions across segments. Q4 momentum shone through robust cash flows from operations hitting $10B (25% y/y), while margins held firm despite R&D investments. Repurchased $11.3B in shares, bolstering liquidity with $6.6B cash/investments and $1.5B revolver undrawn; debt steady at $6.2B. No annual guidance disclosed. Yet AI regulations loom large.
8-K
Record revenue, strong ARR growth
10-Q
Q3 FY2025 results
Adobe's Q3 FY2025 revenue climbed 11% y/y to $5.99B, fueled by 12% growth in Digital Media to $4.46B and 9% in Digital Experience to $1.48B, while gross margin held steady at 89%. Operating income rose 9% y/y to $2.17B, with diluted EPS up 11% to $4.18 on 424M shares, though y/y share count dipped due to aggressive buybacks. Cash from operations hit $6.87B YTD, down from $7.61B cash at FYE but supporting $8.81B in repurchases; total debt stands at $6.20B after issuing $2B in new notes and repaying $1.5B. No major M&A this quarter. Yet regulatory scrutiny over subscription practices lingers.
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