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Q2 FY26 Earnings Release
Adobe reports record revenue of $6.62B, EPS beat by $0.15, and reveals AI-first ARR topping $500M.
FY26 Guidance Raise
Management increases full-year revenue guidance to $26.55B, maintaining >45% operating margin target.
Adobe’s Q2 FY26 SaaS metrics defy disruption fears: total revenue grew 13% to $6.62B while AI-first ARR surged 200% YoY. With full-year guidance raised to $26.55B and 45%+ margins, the subscription model proves AI is additive, not destructive.
Adobe’s Q2 FY26 results show AI-powered tools are not disrupting its creative suite but accelerating martech spending. ARR from AI-first products tripled to over $500 million, signaling strong demand for content generation and personalization engines.
Adobe’s Q2 FY26 beat estimates with $6.62B revenue, guidance raised to $26.55B. A DCF model suggests a $410 target price, implying over 40% upside. Margin resilience and AI ARR growth counterbalance governance risks.
Adobe’s AI-first ARR has passed $500 million, up 200% year-over-year, as generative AI features like Firefly become core to Creative Cloud. The Q2 FY26 breakout suggests Adobe is an AI winner, not a victim.