Adobe Inc. · ADBE · FY2026 Q2 · Calendar Q2 2026

Adobe Q2 FY26: Revenue Beats, Guidance Raised, but Freemium Pivot Pressures Near-Term ARR

Adobe delivered a solid Q2 with revenue and EPS beats and raised full-year guidance, but the initial market reaction was negative (-6.8% vs. a flat benchmark) as management deferred Creative Cloud price optimizations in favor of a freemium acquisition strategy, introducing near-term ARR uncertainty. The stock subsequently drifted +8.2% higher, suggesting investors warmed to the long-term AI and freemium thesis as the quarter's execution and raised guidance offset transition concerns.

Reported After market closeNASDAQTechnology $99.05B market cap
90quality score

Company context

Snapshot as of publication

Adobe Inc. stands as a prominent global software provider, delivering a diverse range of solutions. Its operations are structured into three primary business divisions: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment empowers individuals, teams, and enterprises to generate, disseminate, and amplify various forms of content through its array of products and services, including the cloud-native Document Cloud platform. Central to this segment is Creative Cloud, its subscription-based flagship, granting access to a comprehensive suite of creative tools. This division caters to a diverse range of users, from professional content creators and marketers to educators, communicators, and general consumers.…

Earnings scorecard

Reported versus consensus
Reported EPS $5.96 Consensus $6
EPS surprise +2.4% Reported versus consensus
Reported revenue $6.62B Consensus $6.45B
Revenue surprise +2.5% Reported versus consensus

Earnings History

Estimate Beat Miss Match
ADBE EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q4 '23 estimate $4.13 Q4 '23 actual $4.27, beat Q1 '24 estimate $4.38 Q1 '24 actual $4.48, beat Q2 '24 estimate $4.39 Q2 '24 actual $4.48, beat Q3 '24 estimate $4.53 Q3 '24 actual $4.65, beat Q2 '25 estimate $4.97 Q2 '25 actual $5.06, beat Q3 '25 estimate $5.18 Q3 '25 actual $5.31, beat Q4 '25 estimate $5.40 Q4 '25 actual $5.50, beat Q1 '26 estimate $5.87 Q1 '26 actual $6.06, beat Q2 '26 estimate $5.82 Q2 '26 actual $5.96, beat Q3 '26 estimate $6.07 Q4 '26 estimate $6.30 Q1 '27 estimate $6.75 Q2 '27 estimate $6.78
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Analyst Consensus ?

ConsensusHold62 ratings
Bullish3150.0%
Neutral2641.9%
Bearish58.1%

Analyst 52W Price Targets

$249.18Current
$190Low
$414.96Average
$730High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Jul 29, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Morgan Stanley Underweight Equal WeightDowngradeJul 21, 2026
HSBC Buy HoldUpgradeJul 2, 2026
Wells Fargo Overweight OverweightMaintainJun 12, 2026
UBS Neutral NeutralMaintainJun 12, 2026
Stifel Hold BuyDowngradeJun 12, 2026
Piper Sandler Neutral NeutralMaintainJun 12, 2026
Mizuho Neutral NeutralMaintainJun 12, 2026
Keybanc Underweight UnderweightMaintainJun 12, 2026
Show 54 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $249.18. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Morgan StanleyAdam Wood$240$234.74 -3.7%Jul 21, 2026
CLSAAnalyst unavailable$300$237.25 +20.4%Jul 20, 2026
HSBCStephen Bersey$308$210.98 +23.6%Jul 2, 2026
BMO CapitalAnalyst unavailable$230$218.8 -7.7%Jun 12, 2026
Piper SandlerAnalyst unavailable$240$218.8 -3.7%Jun 12, 2026
D.A. DavidsonGil Luria$250$218.8 +0.3%Jun 12, 2026
Goldman SachsGabriela Borges$190$218.8 -23.7%Jun 12, 2026
BernsteinAnalyst unavailable$379$218.8 +52.1%Jun 12, 2026
UBSKeith Weiss$365$218.8 +46.5%Jun 12, 2026
Robert W. BairdAnalyst unavailable$230$218.8 -7.7%Jun 12, 2026
See 163 more

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Market reaction

event-close to next-session close
Stock move -6.8% Event window
SPY move +0.5% Same window
Abnormal move -7.3% Stock minus SPY
Volume 4.2× Versus trailing sessions
Subsequent drift +8.2% Up to 20 sessions
ADBESPY benchmark

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Transcript intelligence

What changed

Q2 FY26 revenue of $6.62B beat consensus by 2.5% (11% YoY growth) and non-GAAP EPS of $5.96 beat by 2.4%. Adobe raised FY26 revenue guidance to $20.5-$20.6B and non-GAAP EPS to $24.35-$24.45. The SEMrush acquisition closed, adding approximately $480M in ARR. Management announced AI-first agents (Productivity Agent, Creative Agent) with integrations across ChatGPT, Claude, Copilot, and Gemini. Firefly MAUs grew 70% YoY, and Acrobat/Express surpassed 850M MAUs.

Guidance delta

Adobe raised its full-year FY26 revenue guidance to $20.5-$20.6B and non-GAAP EPS to $24.35-$24.45. Management is deferring Creative Cloud price line-optimizations to prioritize freemium user acquisition, creating a short-term ARR headwind that the company expects to offset through expanded top-of-funnel growth and AI-driven conversion over time.

Key takeaways

  • Revenue of $6.62B beat estimates by 2.5% with 11% YoY growth; non-GAAP EPS of $5.96 beat by 2.4%.
  • FY26 guidance raised to $20.5-$20.6B revenue and $24.35-$24.45 non-GAAP EPS.
  • SEMrush acquisition closed, adding ~$480M ARR and expanding Adobe's CX and brand-visibility offerings.
  • Freemium strategy acceleration: Acrobat/Express MAUs exceed 850M, Creative Freemium exceeds 90M, Firefly MAUs up 70% YoY.
  • New AI-first agents launched across third-party platforms including ChatGPT, Claude, Copilot, and Gemini.

Management priorities

  • Scale the freemium acquisition model across Acrobat, Express, and Firefly.
  • Roll out Adobe CX Enterprise and CX Enterprise Coworker broadly.
  • Deepen SEMrush integration for brand-visibility solutions.
  • Expand AI agents across third-party platforms (ChatGPT, Claude, Copilot, Gemini).
  • Re-evaluate Creative Cloud pricing later in the year after freemium growth matures.
  • Continue strategic M&A and tuck-in opportunities in AI and content technology.

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Sources

  1. Earnings call transcript and parsed analysis · 2026-06-11T23:19:28.927685+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-29T04:30:16.527112+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-29T04:30:16.524320+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.