Slide 1: Adobe Q1 FY2026 Earnings Call
Adobe Q1 FY2026 Earnings Call March 12, 2026 DOUG CLARK Good afternoon and thank you for joining us. With me on the call today are Shantanu Narayen, Adobe’s Chair and CEO, David Wadhwani, President of Creativity & Productivity, Anil Chakravarthy, President of Customer Experience Orchestration, and D
Slide 2: Forward-looking statements and non-GAAP measures
The information discussed on this call, including our financial targets and product plans, is as of today, March 12, and contains forward-looking statements that involve risk, uncertainty and assumptions. Actual results may differ materially from those set forth in these statements. For more informa
Slide 3: CEO transition and AI strategy
SHANTANU NARAYEN Thanks, Doug. Good afternoon, everyone and thank you for joining us. Earlier today, we announced that I will be transitioning from my role as CEO after over 18 years and 100 earnings calls! Over the coming months I will be working with Frank Calderoni, Adobe’s Lead Director, and the
Slide 4: Customer-centric AI product strategy
transformation begins with a focus on a customer-centric product strategy to anticipate and fulfill the diverse needs of a large and growing customer base. At Adobe, we are targeting Business Professionals & Consumers and Creative & Marketing Professionals through differentiated AI- infused and AI-f
Slide 5: Enterprise momentum and AI platform integrations
channels. Adobe’s end-to-end solutions are uniquely designed to meet these needs at scale. Strong momentum across our enterprise offerings underscores our leadership and customer confidence in Adobe’s ability to deliver AI-driven value. In Q1 globally, we achieved over 30% year-over-year growth in A
Slide 6: Strategic product platform initiatives
Strategic product platform initiatives Business Professionals Creators & Marketing & Consumers Creative Professionals Professionals AI-powered, quick & easy apps to stand out Power & precision to bring creative visions to life Customer Experience Orchestration to create, deliver through Creativity &
Slide 7: AI growth drivers and MAU growth
DAVID WADHWANI Thanks, Shantanu. Hello everyone. AI is fundamentally reshaping how people create and work. As experiences become increasingly conversational and outcome-driven, more people than ever will benefit from our creativity and productivity tools. Our approach is to expand access to AI acros
Slide 8: Business Professionals & Consumers
Business Professionals & Consumers In the first quarter, subscription revenue for Business Professionals & Consumers was $1.78 billion, growing 15% year over year. Our vision for Business Professionals & Consumers is to deliver AI-powered applications that reinvent how users comprehend, create and s
Slide 9: Conversational platform integrations and Creators & Creative Professionals
We are embedding Adobe’s capabilities directly into new conversational platforms. In Q1, we launched both Acrobat and Express for ChatGPT, significantly expanding the reach of our creativity and productivity workflows. You can expect to see similar integrations into Copilot, Claude and Gemini as tho
Slide 10: Creative Cloud AI capabilities and Firefly Enterprise
Creative Cloud applications continue to embed new AI capabilities, making users far more productive. Photoshop added new partner models and support for higher resolution image generation and editing. Illustrator expanded its generative design capabilities with models from OpenAI, Ideogram, and Googl
Slide 11: Additional Creators & Creative Professionals highlights
Additional Creators & Creative Professionals Highlights Include: • Photoshop launched a conversational editing experience in ChatGPT; • 85% of films premiering at the 2026 Sundance Film Festival were made using Adobe Creative Cloud tools; • Frame is emerging as the cross-media work-in-progress repos
Slide 12: Q1 FY2026 Highlights: Customer Experience Orchestration
Q1 FY2026 Highlights Anil Chakravarthy | President, Customer Experience Orchestration Business ANIL CHAKRAVARTHY Thanks, David. Hello, everyone. Adobe provides the leading AI-powered solutions for Creative & Marketing Professionals to deliver personalized customer experiences at scale. AI remains a
Slide 13: AI-powered Customer Experience Orchestration
In the era of AI, every enterprise needs to drive their current business while harnessing AI to address new trends in consumer behavior and expectations. Companies must ensure their brands remain front and center even as consumers are increasingly discovering new information, engaging with businesse
Slide 14: Brand Concierge, Semrush and GenStudio
increase their organic traffic. Adobe Brand Concierge is an AI-first application enabling businesses to configure and manage agentic AI experiences on their websites and mobile apps to guide consumers from exploration to purchase decisions, using immersive and conversational experiences. We expect o
Slide 15: Creative & Marketing Professional highlights
Creative & Marketing Professional Accomplishments & Highlights Include: • Strong customer demand for our agentic web offerings with over 650 customer trials underway for Adobe LLM Optimizer, Sites Optimizer, and Brand Concierge; • Continued adoption and momentum for AEP AI Assistant with 70% of all
Slide 16: Q1 FY26 performance
DAN DURN Thanks, Anil. Today, I will start by summarizing Adobe’s performance in Q1 fiscal 2026, highlighting growth drivers across our customer groups, and I’ll finish with our financial targets. Q1 FY26 Performance In Q1, Adobe achieved revenue of $6.40 billion, growing 12% year over year as repor
Slide 17: Q1 financial highlights
19% year over year, respectively. GAAP operating margin was 37.8% and non-GAAP operating margin was 47.4%. Q1 Financial Highlights Include: • Total Adobe ending ARR of $26.06 billion, growing 10.9% year over year; • Total Customer Group subscription revenue of $6.17 billion, growing 13% year over ye
Slide 18: Q1 growth drivers by customer group
Q1 growth drivers for Business Professionals & Consumers include: • Sustained double digit ending ARR growth across all geographies; • Acrobat + Express MAU grew approximately 20% year over year; • Acrobat AI Assistant ARR grew ~3x year over year; and • Strong upgrades to Acrobat Studio as part of e
Slide 19: Creative & Marketing Professionals growth drivers
• Growth in Creative Cloud driven by the CC Pro offering; • Creative freemium MAU crossed 80 million, growing over 50% year over year and includes web and mobile versions of Firefly, Express, Premiere, Photoshop and Lightroom; • Generative credit consumption increased more than 45% quarter over quar
Slide 20: Additional insights and targets
products. In Q1, this AI functionality drove significantly greater credit consumption quarter over quarter. However, in Q1 we experienced a greater-than-anticipated decline in our traditional, standalone Stock book of business. While this is happening faster than expected, our strategy is to provide
Slide 21: Q2 targets and summary
• Creative & Marketing Professionals subscription revenue of $4.41 to $4.44 billion; • GAAP EPS of $4.35 to $4.40; and • Non-GAAP EPS of $5.80 to $5.85. For Q2, we expect non-GAAP operating margin of approximately 44.5% and a non-GAAP tax rate of approximately 18.0%. In addition, we are reaffirming
Slide 22: CEO closing remarks
SHANTANU NARAYEN Thanks, Dan. Q1 represented a strong start to the year, both for our existing platforms where we’ve innovated with AI as well as the new strategic initiatives that will drive future growth. Adobe remains steadfast in its commitment to innovation and delivering value to our customers
Slide 23: Q&A
Q&A Adobe 23