Adobe Inc. (ADBE) Income Statement

30Y historyFree accessUpdated daily

Revenue growth has accelerated to 12.9% year-over-year in Q3 2026, but operating margin has compressed to 34.8% as a 21% year-over-year increase in R&D investment outpaces the benefit of an 88.1% gross margin.

Annual statement

ADBE Income Statement

Adobe Inc. (ADBE) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

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	25.97B	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 %	12.03%	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	2.9B	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	23.07B	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 %	88.82%	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	13.8B	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	9.06B	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	4.69B	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	1000K	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	9.27B	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 %	35.7%	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	10.04B	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 %	38.65%	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 %	8.46%	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)	766M	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	9.28B	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	-134M	-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	134M	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	10M	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	9.28B	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 %	35.74%	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	2B	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 %	21.52%	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	7.28B	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 %	28.05%	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 %	4.7%	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)	7.28B	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)	18.44	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 %	11.58%	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	395M	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	395M	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%

Key Metrics

Growth RegimeAccelerating

ProfitabilityStrong

Balance SheetFortress

Cash FlowRobust

Top Statement Risk

AI monetization uncertain

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Re-Acceleration in Subscription Momentum

Adobe's year-over-year revenue growth has re-accelerated from 10.2% in Q2 2024 to 12.9% in Q3 2026, suggesting successful execution on its AI-driven product roadmap and strengthening enterprise demand.

The sequential acceleration in revenue growth over the last several quarters, culminating in a 12.9% year-over-year increase in Q3 2026, indicates the company is gaining momentum after a period of steady, decelerating growth. This re-acceleration implies that investments in generative AI features within the Creative Cloud are beginning to translate into top-line expansion, likely through seat additions or pricing power. However, investors should monitor whether this growth is being driven by core subscription pricing, new AI credit monetization, or a recovery in enterprise IT spending, as the sustainability of each driver varies.

AI Investment Pressuring Operating Leverage

Despite an industry-leading gross margin of 88.1% in Q3 2026, operating margin compressed to 34.8% from a 37.8% peak in Q1, suggesting elevated R&D and S&M spending is currently outpacing the operational efficiency gains from scale.

Adobe's gross margin remains exceptionally high and stable, confirming the low marginal cost of its software delivery model. However, the decline in operating margin from the early 2025 peak indicates that the company is in a period of heavier investment, likely directed toward AI infrastructure and competitive positioning. This pattern suggests management is prioritizing long-term market leadership over near-term profitability, a trade-off that warrants monitoring to ensure the increased spending ultimately translates into durable revenue growth and margin expansion.

Elevated Cost Base Reflects Strategic Pivot

Total operating expenses as a percentage of revenue reached 53.3% in Q3 2026, driven by a 21% year-over-year increase in R&D, which appears to be a direct investment in generative AI capabilities and product integration.

The cost structure shows a clear strategic shift, with R&D growth outpacing revenue growth over the trailing period. This is consistent with the company's stated focus on embedding generative AI across its core products. While this spending is necessary to defend its competitive moat, it has resulted in operating expense growth that is temporarily above the revenue growth rate. The key analytical question is whether this investment cycle will yield a subsequent period of operating leverage, where revenue growth accelerates while the cost base stabilizes.

Operating Leverage Temporarily Sidelined

Operating income growth of 16.2% in Q3 2026 is lagging behind gross profit growth of 19.8%, indicating that incremental spending is currently consuming the benefit of scale on the top line.

Historically, Adobe's high fixed-cost model allows for significant operating leverage, where revenue growth flows through to operating income at a high rate. The current dynamic, where operating income growth trails gross profit growth, suggests the company is in a deliberate investment phase. This may represent a temporary sacrifice of near-term margin expansion to fund long-term competitive advantages. The inflection point back to positive operating leverage will be a critical signal for investors that the investment cycle is yielding returns.

SBC Dilution Masks Underlying Profitability

Stock-based compensation of $539 million in Q3 2026 represents approximately 7.9% of revenue, a significant non-cash expense that dilutes reported EPS and highlights the high cost of retaining talent in a competitive AI labor market.

While Adobe generates strong GAAP profitability, the substantial and growing absolute level of stock-based compensation is a real cost to shareholders through dilution. This expense, which has increased by over 16% year-over-year, is particularly relevant as it underscores the competitive pressure for engineering talent in the AI domain. Investors should examine the trend in SBC as a percentage of revenue to assess whether the company is maintaining discipline or if talent costs are becoming an escalating structural headwind.

Premium Valuation on Unproven AI Monetization

The stock's premium multiple is predicated on the successful monetization of generative AI, yet Q3 results show the first significant EPS miss in recent quarters, raising questions about the pace of return on massive R&D investments.

A critical view suggests that Adobe's valuation assumes a seamless transition where AI features drive accelerated growth and margin expansion. However, the Q3 earnings miss, despite strong top-line growth, may indicate that the cost of AI integration is higher than anticipated or that monetization mechanisms (like credit-based pricing) are not yet fully optimized. The competitive threat from AI-native startups could also force Adobe into more aggressive pricing or spending, which would challenge the high-margin thesis. The durability of the premium multiple is therefore contingent on unproven assumptions about AI's net impact on unit economics.

ADBE — Frequently Asked Questions

Quick answers to the most common questions about buying ADBE stock.

What was Adobe Inc.'s (ADBE) revenue in 2025?

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.

Is Adobe Inc. (ADBE) profitable?

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%.

What is Adobe Inc.'s operating profit margin?

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.

What is Adobe Inc.'s gross profit and gross margin?

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.