Adobe continues to demonstrate structural pricing power, maintaining gross margins near 89% while scaling operating income to $2.2 billion in 2026Q2.
| Metric | TTM | Nov'25 | Nov'24 | Dec'23 | Dec'22 | Dec'21 | Nov'20 | Nov'19 | Nov'18 | Dec'17 | Dec'16 | Nov'15 | Nov'14 | Nov'13 | Nov'12 | Dec'11 | Dec'10 | Nov'09 | Nov'08 | Nov'07 | Dec'06 | Dec'05 | Dec'04 | Nov'03 | Nov'02 | Nov'01 | Dec'00 | Dec'99 | Nov'98 | Nov'97 | Nov'96 |
|---|
| Sales/Revenue | 25.2B | 23.77B | 21.5B | 19.41B | 17.61B | 15.79B | 12.87B | 11.17B | 9.03B | 7.3B | 5.85B | 4.8B | 4.15B | 4.06B | 4.4B | 4.22B | 3.8B | 2.95B | 3.58B | 3.16B | 2.58B | 1.97B | 1.67B | 1.29B | 1.16B | 1.23B | 1.27B | 1.02B | 894.79M | 911.89M | 786.56M |
| Revenue Growth % | 11.49% | 10.53% | 10.8% | 10.24% | 11.54% | 22.67% | 15.19% | 23.71% | 23.67% | 24.72% | 22.08% | 15.64% | 2.26% | -7.91% | 4.45% | 10.95% | 28.99% | -17.71% | 13.36% | 22.62% | 30.97% | 17.99% | 28.72% | 11.16% | -5.28% | -2.89% | 24.71% | 13.48% | -1.88% | 15.93% | 3.18% |
| Cost of Goods Sold | 2.74B | 2.71B | 2.36B | 2.35B | 2.17B | 1.86B | 1.72B | 1.67B | 1.19B | 1.01B | 819.91M | 744.32M | 622.08M | 586.56M | 483.78M | 437.87M | 403.5M | 296.73M | 362.63M | 354.69M | 292.46M | 112.58M | 104.38M | 93.02M | 104.29M | 81.45M | 87.25M | 94.54M | 111.44M | 126.27M | 141.15M |
| COGS % of Revenue | - | 11.39% | 10.96% | 12.13% | 12.3% | 11.82% | 13.38% | 14.97% | 13.23% | 13.84% | 14% | 15.52% | 15% | 14.46% | 10.99% | 10.39% | 10.62% | 10.07% | 10.13% | 11.23% | 11.36% | 5.73% | 6.26% | 7.18% | 8.95% | 6.62% | 6.89% | 9.31% | 12.45% | 13.85% | 17.94% |
| Gross Profit | 22.46B | 21.06B | 19.15B | 17.05B | 15.44B | 13.92B | 11.15B | 9.5B | 7.84B | 6.29B | 5.03B | 4.05B | 3.52B | 3.47B | 3.92B | 3.78B | 3.4B | 2.65B | 3.22B | 2.8B | 2.28B | 1.85B | 1.56B | 1.2B | 1.06B | 1.15B | 1.18B | 920.89M | 783.35M | 785.62M | 645.42M |
| Gross Margin % | 89.12% | 88.61% | 89.04% | 87.87% | 87.7% | 88.19% | 86.62% | 85.03% | 86.77% | 86.16% | 86% | 84.48% | 85% | 85.54% | 89.01% | 89.61% | 89.38% | 89.93% | 89.87% | 88.77% | 88.64% | 94.27% | 93.74% | 92.82% | 91.05% | 93.38% | 93.11% | 90.69% | 87.55% | 86.15% | 82.06% |
| Gross Profit Growth % | - | 10% | 12.27% | 10.45% | 10.93% | 24.89% | 17.34% | 21.23% | 24.54% | 24.96% | 24.27% | 14.93% | 1.62% | -11.51% | 3.75% | 11.24% | 28.21% | -17.66% | 14.77% | 22.79% | 23.15% | 18.66% | 30% | 13.32% | -7.64% | -2.62% | 28.04% | 17.56% | -0.29% | 21.72% | 2.12% |
| Operating Expenses | 13.37B | 12.36B | 12.41B | 10.4B | 9.34B | 8.12B | 6.91B | 6.23B | 4.99B | 4.12B | 3.54B | 3.15B | 3.11B | 3.05B | 2.74B | 2.54B | 2.31B | 1.85B | 2.09B | 1.95B | 1.64B | 1.13B | 970.41M | 822.82M | 734.58M | 743.47M | 757.93M | 629.6M | 619.76M | 548.9M | 498.63M |
| OpEx % of Revenue | - | 51.98% | 57.69% | 53.61% | 53.07% | 51.43% | 53.69% | 55.77% | 55.31% | 56.47% | 60.48% | 65.61% | 75.05% | 75.11% | 62.28% | 60.21% | 60.74% | 62.66% | 58.35% | 61.61% | 63.76% | 57.23% | 58.23% | 63.55% | 63.07% | 60.46% | 59.85% | 62% | 69.26% | 60.19% | 63.39% |
| Selling, General & Admin | 8.8B | 8.06B | 7.29B | 6.76B | 6.19B | 5.41B | 4.56B | 4.12B | 3.37B | 2.82B | 2.49B | 2.22B | 2.22B | 2.14B | 1.95B | 1.8B | 1.63B | 1.28B | 1.43B | 1.26B | 1.1B | 759.98M | 659.11M | 545.84M | 488.5M | 519.35M | 517.72M | 432.13M | 412.42M | 378.63M | 317.01M |
| SG&A % of Revenue | - | 33.91% | 33.91% | 34.85% | 35.14% | 34.25% | 35.43% | 36.92% | 37.27% | 38.65% | 42.5% | 46.19% | 53.41% | 52.79% | 44.31% | 42.7% | 42.83% | 43.47% | 39.85% | 39.88% | 42.8% | 38.65% | 39.55% | 42.16% | 41.94% | 42.23% | 40.88% | 42.56% | 46.09% | 41.52% | 40.3% |
| Research & Development | 4.49B | 4.29B | 3.94B | 3.47B | 2.99B | 2.54B | 2.19B | 1.93B | 1.54B | 1.22B | 975.99M | 862.73M | 844.35M | 826.63M | 742.82M | 738.05M | 680.33M | 565.14M | 662.06M | 613.24M | 539.68M | 365.33M | 311.3M | 276.98M | 246.08M | 224.12M | 240.21M | 197.48M | 207.34M | 170.86M | 152.91M |
| R&D % of Revenue | - | 18.07% | 18.34% | 17.89% | 16.97% | 16.09% | 17% | 17.28% | 17.03% | 16.76% | 16.67% | 17.99% | 20.36% | 20.38% | 16.87% | 17.5% | 17.9% | 19.18% | 18.49% | 19.42% | 20.96% | 18.58% | 18.68% | 21.39% | 21.13% | 18.23% | 18.97% | 19.45% | 23.17% | 18.74% | 19.44% |
| Other Operating Expenses | 2M | 0 | 1.17B | 168M | 169M | 172M | 162M | 175.24M | 91.1M | 76.56M | 77.03M | 68.65M | 72.31M | 78.75M | 48.66M | 0 | 0 | 0 | 0 | 72.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -590K | 28.71M |
| Operating Income | 9.09B | 8.71B | 6.74B | 6.65B | 6.1B | 5.8B | 4.24B | 3.27B | 2.84B | 2.17B | 1.49B | 903.1M | 412.69M | 422.72M | 1.18B | 1.1B | 993.07M | 690.51M | 1.03B | 857.59M | 551.29M | 728.43M | 591.79M | 379.45M | 287.03M | 378.46M | 408.08M | 259.85M | 125.35M | 230.76M | 146.79M |
| Operating Margin % | 36.07% | 36.63% | 31.35% | 34.26% | 34.64% | 36.76% | 32.93% | 29.25% | 31.45% | 29.69% | 25.51% | 18.83% | 9.95% | 10.42% | 26.8% | 26.07% | 26.13% | 23.44% | 28.72% | 27.16% | 21.41% | 37.05% | 35.51% | 29.31% | 24.64% | 30.78% | 32.22% | 25.59% | 14.01% | 25.31% | 18.66% |
| Operating Income Growth % | - | 29.15% | 1.37% | 9.05% | 5.1% | 36.94% | 29.65% | 15.06% | 31.01% | 45.16% | 65.39% | 118.83% | -2.37% | -64.18% | 7.36% | 10.7% | 43.82% | -32.85% | 19.9% | 55.56% | -24.32% | 23.09% | 55.96% | 32.2% | -24.16% | -7.26% | 57.04% | 107.31% | -45.68% | 57.21% | 9.08% |
| EBITDA | 9.85B | 9.52B | 7.6B | 7.52B | 7.04B | 6.66B | 4.99B | 4B | 3.19B | 2.49B | 1.83B | 1.24B | 726.27M | 743.95M | 1.48B | 1.37B | 1.29B | 972.94M | 1.3B | 1.17B | 859.12M | 792.77M | 652.6M | 428.46M | 350.51M | 435.1M | 451.36M | 310.62M | 181.61M | 290.14M | 202.41M |
| EBITDA Margin % | 39.09% | 40.07% | 35.33% | 38.76% | 39.97% | 42.21% | 38.81% | 35.85% | 35.29% | 34.16% | 31.18% | 25.91% | 17.51% | 18.35% | 33.61% | 32.48% | 33.84% | 33.03% | 36.27% | 37.15% | 33.36% | 40.32% | 39.16% | 33.09% | 30.09% | 35.38% | 35.64% | 30.59% | 20.3% | 31.82% | 25.73% |
| EBITDA Growth % | 8.49% | 25.35% | 1.01% | 6.89% | 5.61% | 33.42% | 24.7% | 25.67% | 27.78% | 36.65% | 46.88% | 71.09% | -2.38% | -49.73% | 8.07% | 6.51% | 32.16% | -25.07% | 10.7% | 36.54% | 8.37% | 21.48% | 52.31% | 22.24% | -19.44% | -3.6% | 45.31% | 71.04% | -37.41% | 43.34% | 3.8% |
| D&A (Non-Cash Add-back) | 759M | 818M | 857M | 872M | 939M | 861M | 757M | 736.67M | 346.49M | 326M | 331.54M | 339.47M | 313.59M | 321.23M | 299.77M | 270.2M | 292.74M | 282.42M | 270.27M | 315.46M | 307.82M | 64.33M | 60.81M | 49.01M | 63.48M | 56.65M | 43.27M | 50.77M | 56.26M | 59.38M | 55.62M |
| EBIT | 9.18B | 8.93B | 7.1B | 6.91B | 6.1B | 5.81B | 4.29B | 3.36B | 2.88B | 2.17B | 1.49B | 937.97M | 421.11M | 423.65M | 1.19B | 1.1B | 1B | 704.93M | 1.09B | 858.14M | 571.03M | 728.43M | 608.64M | 378.9M | 304.94M | 390.52M | 414.18M | 286.46M | 163.59M | 236.13M | 172.99M |
| Net Interest Income | -135M | -263M | 177M | 156M | -51M | -96M | -73M | -89M | 4M | -8.33M | -23.1M | -35.42M | -38.38M | -45.62M | -42.94M | -42.45M | -35.03M | 31.57M | 33.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 341M | 269M | 61M | 17M | 43M | 68M | 93M | 66.07M | 47.34M | 28.76M | 21.36M | 21.89M | 24.55M | 24.51M | 21.92M | 34.98M | 43.85M | 92.79M | 0 | 0 | 13.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 135M | 263M | 164M | 113M | 112M | 113M | 116M | 157M | 89M | 74.4M | 70.44M | 64.18M | 59.73M | 67.51M | 67.49M | 66.95M | 56.95M | 3.41M | 10.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 21M | 28M | 190M | 149M | -90M | -97M | -61M | -63.38M | -46.49M | -30.45M | -58.46M | -29.31M | -51.31M | -66.58M | -61.4M | -64.07M | -49.92M | 11.01M | 50.24M | 89.61M | 128.43M | 37.34M | 16.85M | 1.04M | -2.34M | -71.53M | 35.66M | 114.57M | 42.35M | 65.33M | 98.04M |
| Pretax Income | 9.11B | 8.73B | 6.93B | 6.8B | 6.01B | 5.71B | 4.18B | 3.2B | 2.79B | 2.14B | 1.44B | 873.78M | 361.38M | 356.14M | 1.12B | 1.04B | 943.15M | 701.52M | 1.08B | 947.19M | 679.73M | 765.78M | 608.64M | 380.49M | 284.69M | 306.93M | 443.74M | 374.43M | 167.69M | 296.09M | 244.82M |
| Pretax Margin % | 36.16% | 36.75% | 32.23% | 35.03% | 34.12% | 36.14% | 32.45% | 28.69% | 30.94% | 29.28% | 24.51% | 18.22% | 8.71% | 8.78% | 25.41% | 24.55% | 24.82% | 23.81% | 30.13% | 29.99% | 26.39% | 38.94% | 36.52% | 29.39% | 24.44% | 24.96% | 35.04% | 36.87% | 18.74% | 32.47% | 31.13% |
| Income Tax | 1.88B | 1.6B | 1.37B | 1.37B | 1.25B | 883M | -1.08B | 253.28M | 203.1M | 443.69M | 266.36M | 244.23M | 92.98M | 66.16M | 286.02M | 202.38M | 168.47M | 315.01M | 206.69M | 223.38M | 173.92M | 162.94M | 158.25M | 114.15M | 93.29M | 101.29M | 155.93M | 136.68M | 62.55M | 109.25M | 91.55M |
| Effective Tax Rate % | 20.66% | 18.37% | 19.78% | 20.16% | 20.84% | 15.48% | -25.96% | 7.9% | 7.27% | 20.76% | 18.56% | 27.95% | 25.73% | 18.58% | 25.56% | 19.55% | 17.86% | 44.9% | 19.16% | 23.58% | 25.59% | 21.28% | 26% | 30% | 32.77% | 33% | 35.14% | 36.5% | 37.3% | 36.9% | 37.39% |
| Net Income | 7.23B | 7.13B | 5.56B | 5.43B | 4.76B | 4.82B | 5.26B | 2.95B | 2.59B | 1.69B | 1.17B | 629.55M | 268.39M | 289.99M | 832.77M | 832.85M | 774.68M | 386.51M | 871.81M | 723.81M | 505.81M | 602.84M | 450.4M | 266.34M | 191.4M | 205.64M | 287.81M | 237.75M | 105.14M | 186.84M | 153.28M |
| Net Margin % | 28.69% | 30% | 25.85% | 27.97% | 27.01% | 30.55% | 40.88% | 26.42% | 28.69% | 23.2% | 19.96% | 13.13% | 6.47% | 7.15% | 18.91% | 19.75% | 20.39% | 13.12% | 24.35% | 22.92% | 19.64% | 30.66% | 27.03% | 20.57% | 16.43% | 16.72% | 22.73% | 23.41% | 11.75% | 20.49% | 19.49% |
| Net Income Growth % | 5.24% | 28.24% | 2.43% | 14.13% | -1.37% | -8.33% | 78.22% | 13.92% | 52.94% | 44.93% | 85.65% | 134.56% | -7.45% | -65.18% | -0.01% | 7.51% | 100.43% | -55.67% | 20.45% | 43.1% | -16.1% | 33.85% | 69.1% | 39.16% | -6.93% | -28.55% | 21.05% | 126.12% | -43.72% | 21.89% | 63.96% |
| Net Income (Continuing) | 7.23B | 7.13B | 5.56B | 5.43B | 4.76B | 4.82B | 5.26B | 2.95B | 2.59B | 1.69B | 1.17B | 629.55M | 268.39M | 289.99M | 832.77M | 832.85M | 774.68M | 386.51M | 871.81M | 723.81M | 505.81M | 602.84M | 450.4M | 266.34M | 191.4M | 205.64M | 287.81M | 237.75M | 105.14M | 186.84M | 153.28M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 17.98 | 16.70 | 12.36 | 11.83 | 10.10 | 10.02 | 10.83 | 6.00 | 5.20 | 3.38 | 2.32 | 1.24 | 0.50 | 0.56 | 1.66 | 1.65 | 1.47 | 0.73 | 1.59 | 1.21 | 0.83 | 1.19 | 0.91 | 0.55 | 0.40 | 0.42 | 0.56 | 0.46 | 0.19 | 0.32 | 0.25 |
| EPS Growth % | 11.76% | 35.11% | 4.48% | 17.13% | 0.8% | -7.48% | 80.5% | 15.38% | 53.85% | 45.69% | 87.1% | 148% | -10.71% | -66.27% | 0.61% | 12.24% | 101.37% | -54.09% | 31.41% | 45.78% | -30.25% | 30.77% | 65.45% | 37.5% | -4.76% | -25% | 21.74% | 142.11% | -40.63% | 28% | 56.25% |
| EPS (Basic) | - | 16.73 | 12.44 | 11.88 | 10.13 | 10.10 | 10.94 | 6.07 | 5.28 | 3.43 | 2.35 | 1.26 | 0.51 | 0.58 | 1.68 | 1.67 | 1.49 | 0.74 | 1.62 | 1.24 | 0.85 | 1.23 | 0.95 | 0.57 | 0.41 | 0.43 | 0.61 | 0.49 | 0.20 | 0.33 | 0.25 |
| Diluted Shares Outstanding | 402M | 427M | 450M | 459M | 471M | 481M | 485M | 491.57M | 497.84M | 501.12M | 504.3M | 507.16M | 508.48M | 513.48M | 502.72M | 503.92M | 525.82M | 530.61M | 548.55M | 598.77M | 612.22M | 508.07M | 495.63M | 482.9M | 486.24M | 498.29M | 511.55M | 516.82M | 543.79M | 593.28M | 608.52M |
| Basic Shares Outstanding | 402M | 426M | 447.1M | 457M | 470M | 477M | 481M | 486.29M | 490.56M | 493.63M | 498.35M | 498.76M | 497.87M | 501.37M | 494.73M | 497.47M | 519.04M | 524.47M | 539.37M | 584.2M | 593.75M | 489.92M | 477.66M | 468.49M | 473.67M | 476.92M | 476.58M | 483.14M | 531.46M | 575.7M | 608.52M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 0.5% | 2.65% | 4.37% | 6.21% | 5.84% | 4.16% | 5.15% | 15.49% | 11.19% | 9.52% |
Generative AI compute costs
According to the latest quarterly data, Adobe has maintained a consistent growth trajectory, with revenue reaching $6.6 billion in 2026Q2, representing a 12.7% year-over-year increase that underscores the durability of its subscription-based model despite broader macroeconomic headwinds affecting enterprise IT spending cycles across the technology sector.
The steady acceleration from 10.2% growth in 2024Q2 to 12.7% in the most recent quarter suggests that the company is successfully navigating the transition to AI-integrated workflows. Investors should monitor whether this growth remains organic or if it becomes increasingly reliant on price adjustments to offset potential saturation in core creative seat counts.
As reported in financial statements, Adobe continues to exhibit exceptional pricing power, maintaining gross margins near 89% over the last ten quarters, a figure that highlights the low marginal cost of software distribution and the high switching costs inherent in its proprietary creative file formats.
While these margins remain industry-leading, the integration of generative AI features introduces a new variable in the cost of goods sold that warrants further investigation. If compute-intensive AI generation becomes a larger component of the service delivery, the company may face pressure to defend these margins through more aggressive monetization of its Firefly credit system.
Based on reported figures, Adobe has demonstrated disciplined operating leverage, with operating income scaling to $2.2 billion in 2026Q2, even as the company continues to allocate significant capital toward R&D and SG&A to maintain its technological lead against emerging AI-native competitors in the creative software space.
The ability to keep operating margins consistently above 33% while scaling R&D spending suggests that management is effectively balancing innovation with profitability. However, the recent uptick in SG&A expenses may indicate a more competitive environment, requiring higher customer acquisition costs to maintain market share in the Digital Experience segment.
Analysis of the income statement reveals that stock-based compensation remains a significant non-cash expense, totaling $534 million in 2026Q2, which continues to represent a meaningful portion of operating costs and necessitates careful scrutiny regarding the true economic earnings available to common shareholders over the long term.
While net income remains robust, the persistent level of SBC suggests that the company relies heavily on equity-based incentives to retain talent in a competitive labor market. Investors should evaluate whether the current EPS growth of 7.6% is being artificially supported by share repurchases that offset the dilutive impact of these compensation packages.
Quick answers to the most common questions about buying ADBE stock.
For fiscal year 2025, Adobe Inc. (ADBE) reported total revenue of $23.77B. This represents a 2921.9% increase compared to $786.6M in 1996.
Adobe Inc. (ADBE) is profitable, generating $7.13B in net income for the fiscal year ending 2025 with a net profit margin of 30.0%.
Adobe Inc. (ADBE) reported an operating income of $8.71B, resulting in an operating profit margin of 36.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Adobe Inc. (ADBE) generated $21.06B in gross profit for the year, representing a gross profit margin of 88.6%. This demonstrates the company's core pricing power and production efficiency.