AI
← Earnings Calls
01
02
03
04 05
Tone
AI
ADBE
FY2026 Q2
Raised
Adobe Inc. earnings call
Buzzberg read
Deferred Creative Cloud price optimizations to focus on freemium
Management expressed strong conviction in the long-term AI opportunity and the decision to sacrifice short-term ARR for freemium user acquisition, while maintaining confidence in the core business and raising full-year revenue guidance.
Buzzberg read Deferred Creative Cloud price optimizations to focus on freemium Management expressed strong conviction in the long-term AI opportunity and the decision to sacrifice short-term ARR for freemium user acquisition, while maintaining confidence in the core business and raising full-year revenue guidance. Read full analysisCollapse analysis
Management expressed strong conviction in the long-term AI opportunity and the decision to sacrifice short-term ARR for freemium user acquisition, while maintaining confidence in the core business and raising full-year revenue guidance.
Revenue$6.618B+3% QoQ
EPS$5.96-2% QoQ
Gross margin89.2%Reported
Operating margin33.82%Reported
5 grounded callouts
What matters now
The highest-signal changes from the call.
AI
AI-first ARR exceeds $500 million, up 3x year-over-year
AI
Firefly ARR grew ~50% quarter-over-quarter
Show 2 more callouts
Demand
Adobe.com traffic grew over 40% year-over-year
Guidance
Strategic shift lowers second-half ARR expectations
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $6.618B | +3% QoQ |
| EPS | $5.96 | -2% QoQ |
| Gross margin | 89.2% | Reported |
| Operating margin | 33.82% | Reported |
| Free cash flow | $2.454B | -16% QoQ |
| Capex | $0.058B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $24.35–$24.45 | $24.40 | Raised |
| EPS | FY2026 Q3 | $6.05–$6.10 | $6.07 | Guided |
| Revenue | FY2026 | $26.5B–$26.6B | $26.55B | Raised |
| Revenue | FY2026 Q3 | $6.67B–$6.72B | $6.695B | Guided |
| RevenueBUSINESS_PROFESSIONALS_C | FY2026 | $7.44B–$7.48B | $7.46B | Guided |
| RevenueCREATIVE_MARKETING_PROFE | FY2026 | $18.21B–$18.27B | $18.24B | Guided |
AI, capex & demand read
Management read
confident
Management expressed strong conviction in the long-term AI opportunity and the decision to sacrifice short-term ARR for freemium user acquisition, while maintaining confidence in the core business and raising full-year revenue guidance.
Management AI read
Management emphasized that AI is accelerating customer behavior at unprecedented speed, driving a strategic shift to aggressively acquire freemium users through Firefly and Acrobat AI Assistant, with AI-first ARR rising to over $500 million, up 3x year-over-year.
all 9 named companies below
Companiesreturns since call
Customers
Customers
David Wadwani
Accenture is expanding its use of Adobe's creativity and productivity tools, signaling continued investment in digital content and AI workflows.
Evidence
“Customer wins this quarter include Accenture, DATEV, KPMG, Merck, NHL, New York State Court System, The Church of Jesus Christ of Latter-day Saints, Defense Information Systems Agency, and U.S. Department of Housing and Urban Development.”
Customers
David Wadwani
Coca-Cola is adopting Adobe's AI-first creative and marketing tools, indicating the brand's shift toward AI-powered content production at scale.
Evidence
“Enterprise wins this quarter include Merck, SAP, ServiceNow, Tesco, the Coca-Cola Company, Workday, and Xfinity.”
Customers
Anil Chakravarty
SAP is expanding its use of Adobe's customer experience orchestration platform, highlighting strong cross-sell in the enterprise segment.
Evidence
“Global enterprise customer wins in Q2 included Dentsu Merkle, Defense Information Systems Agency, Diria Company, Kaiser Foundation Hospitals, Merck Sharp and Dome, NHL, SAP, ServiceNow, Stagwell, Stellantis, Tesco, and the Coca-Cola”
Partners
Partners
David Wadwani
Adobe is leveraging NVIDIA's GPU compute to scale AI content generation, signaling continued enterprise demand for NVIDIA's accelerated computing.
Evidence
“Our announced NVIDIA partnership will bring accelerated computing to Adobe Firefly Foundry for faster, higher-performing custom models across image, video, audio, vector, and 3D, plus a cloud-native 3D digital twin built on Omniverse and”
OPENAI
ANTHROPIC
Partners
David Wadwani
Adobe's creative agent is distributable via ChatGPT, giving OpenAI another professional tool in its plugin ecosystem and driving usage of Adobe's agent.
Evidence
“We've also taken that AI assistant, that creative agent, and made it available inside of both ChatGPT and inside of Claude.”
Partners
David Wadwani
Adobe's creative agent will integrate with Microsoft Copilot, positioning Copilot as a distribution channel for creative AI tasks and expanding its enterprise value.
Evidence
“The Adobe Creative Agent is also available in Cloud, ChatGPT, and soon, Copilot and Gemini.”
Supply chain
SEMR
Supply chain
Steve Day
Adobe's acquisition of SEMrush adds a substantial ARR base (c. $480M) and complements its brand visibility offering; the purchase price and integration progress are key for SEMrush's existing stakeholders.
Evidence
“SEMrush added $480 million ARR to our book of business and expands our ability to serve marketers of every scale.”
Methodology & coverage
Management-only analysis. All 9 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.