Adobe Inc

Q2 performance: solid growth, driven by subscription + conversion; EPS ahead (with one GAAP drag) - Revenue: $6.62B, up 11% YoY (reported). - GAAP EPS: $4.25 (+8% YoY); Non-GAAP EPS: $5.96 (+18% YoY). - One notable negative/technical item: GAAP EPS included a $70M ($0.17/share) non-cash goodwill impairment related to a publishing/advertising unit. - Business momentum highlighted as subscription bookings to revenue conversion; management also cited “disciplined investments” supporting EPS growth.

Full-year outlook raised: revenue + non-GAAP EPS targets up; assumes SEMrush included - FY26 revenue target: $20.5B–$20.6B (raised). - FY26 non-GAAP EPS target: $24.35–$24.45 (raised). - FY26 GAAP EPS target: $17.9–$18.0. - ARR: ~10.2% YoY ending book-of-business growth, now reflecting (a) SEMrush addition and (b) strategic shift (accelerate freemium MAU premium growth; defer Creative Cloud “line optimizations”). - Capital return / buybacks: repurchased ~8.5M shares in Q2; $27B remaining under authorization at quarter-end (and a new $25B authorization announced in April—important for capital return expectations even though no dividend was discussed).

Q3 guidance: moderate continued growth; EPS expectations with margin/tax assumptions - FY26 Q3 revenue: $6.67B–$6.72B. - Q3 subscription revenue (BP&C): $1.87B–$1.89B. - Q3 subscription revenue (Creative & Marketing): $4.61B–$4.64B. - Q3 EPS: GAAP $4.40–$4.45, Non-GAAP $6.05–$6.10. - Guidance assumptions included non-GAAP operating margin ~44–45% and GAAP tax rate ~23% (non-GAAP tax rate ~18%).