ADBE

product upgrades and enhancements or technical support, depending on the offering, are generally recognized ratably over the term of the arrangement. Transaction-based advertising revenue is recognized on a usage basis as we satisfy the performance obligations to our customers. Geographical Information Revenue by geographic area for the three and six months ended May 29, 2026 and May 30, 2025 were as follows: (dollars in millions) Three Months Six Months 2026 2025 % Change 2026 2025 % Change Americas $ 3,872

product upgrades and enhancements or technical support, depending on the offering, are generally recognized ratably over the term of the arrangement. Transaction-based advertising revenue is recognized on a usage basis as we satisfy the performance obligations to our customers. Segments In fiscal 2025, we categorized our products into the following reportable segments: • Digital Media —Our Digital Media segment provides products and services that enable individuals, teams, businesses, and enterprises to c

product upgrades and enhancements or technical support, depending on the offering, are generally recognized ratably over the term of the arrangement. Transaction-based advertising revenue is recognized on a usage basis as we satisfy the performance obligations to our customers. Geographical Information Revenue by geographic area for the three months ended February 27, 2026 and February 28, 2025 were as follows: (dollars in millions) Three Months 2026 2025 % Change Americas $ 3,755 $ 3,405 10 % Percentage of t

30 Table of Contents Interest Expense Interest expense represents interest associated with our debt i

Income (Expense), Net for the Three and Six Months Ended May 29, 2026 and May 30, 2025 (dollars in millions) Three Months Six Months 2026 2025 % Change 2026 2025 % Change Interest expense $ (65) $ (68) (4) % $ (128) $ (130) (2) % Investment gains (losses), net 18 2 ** 23 8 ** Other income (expense), net 47 58 (19) % 109 133 (18) % Total non-operating income (expense), net $ — $ (8) ** $ 4 $ 11 ** _________________________________________ (**) Percentage is not meaningful. Interest Expense Interest expense repr

1,009 744 Amortization of intangibles 37 41 72 82 Total operating expenses 3,665 3,126 6,981 6,055 Operating income 2,238 2,109 4,656 4,272 Non-operating income (expense): Interest expense ( 65 ) ( 68 ) ( 128 ) ( 130 ) Investment gains (losses), net 18 2 23 8 Other income (expense), net 47 58 109 133 Total non-operating income (expense), net — ( 8 ) 4 11 Income before income taxes 2,238 2,101 4,660 4,283 Provision for income taxes 526 410 1,059 781 Net income $ 1,712 $ 1,691 $ 3,601 $ 3,502 Basic net income per

termination fee which resulted from termination of the Figma transaction. Non-Operating Income (Expense), Net (dollars in millions) 2025 2024 2023 % Change 2025-2024 Interest expense $ (263) $ (169) $ (113) 56 % % Investment gains (losses), net 43 48 16 ** Other income (expense), net 248 311 246 (20) % % Total non-operating income (expense), net $ 28 $ 190 $ 149 ** _________________________________________ (**) Percentage is not meaningful. Interest Expense Interest expense represents interest associated wi

1,495 General and administrative 463 367 Amortization of intangibles 35 41 Total operating expenses 3,316 2,929 Operating income 2,418 2,163 Non-operating income (expense): Interest expense ( 63 ) ( 62 ) Investment gains (losses), net 5 6 Other income (expense), net 62 75 Total non-operating income (expense), net 4 19 Income before income taxes 2,422 2,182 Provision for income taxes 533 371 Net income $ 1,889 $ 1,811 Basic net income per share $ 4.60 $ 4.15 Shares used to compute basic net income per share 410 436

• incurrence of additional debt to finance a transaction, which will increase our interest expense and leverage, and/or issuance of equity securities to finance transactions, which will dilute current shareholders’ percentage ownership and earnings per share

40 Table of Contents • incurrence of additional debt to finance a transaction, which will increase our interest expense and leverage, and/or issuance of equity securities to finance transactions, which will dilute current shareholders’ percentage ownership and earnings per share

38 Table of Contents • incurrence of additional debt to finance a transaction, which will increase our interest expense and leverage, and/or issuance of equity securities to finance transactions, which will dilute current shareholders’ percentage ownership and earnings per share

Deferred compensation plan assets 385 385 — — Foreign currency derivatives 11 — 11 — Interest rate swap derivatives 35 — 35 — Total assets $ 5,360 $ 3,732 $ 1,628 $ — Liabilities: Accrued expenses and other current liabilities: Foreign currency derivatives $ 89 $ — $ 89 $ — Interest rate swap derivatives 10 — 10 — Other liabiliti

Corporate debt securities 457 — 457 — U

footprint, we are subject to risks and exposures from the evolving macroeconomic environment, including the effects of increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

footprint, we are subject to risks and exposures from the evolving macroeconomic environment, including the effects of increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

footprint, we are subject to risks and exposures from the evolving macroeconomic environment, including the effects of increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

• inflation and actions taken by central banks to counter inflation, including increasing interest rates

• inflation and actions taken by central banks to counter inflation, including increasing interest rates

• inflation and actions taken by central banks to counter inflation, including increasing interest rates

footprint, we are subject to risks and exposures from the evolving macroeconomic environment, including the effects of increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

• inflation and actions taken by central banks to counter inflation, including increasing interest rates

Corporate debt securities 457 — 457 — U

• inflation and actions taken by central banks to counter inflation, including increasing interest rates

footprint, we are subject to risks and exposures from the evolving macroeconomic environment, including the effects of increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

exposures from the evolving macroeconomic environment, including the effects of increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

We are subject to fluctuations in foreign currency exchange rates and may not be able to effectively hedge our exposure

We are subject to fluctuations in foreign currency exchange rates and may not be able to effectively hedge our exposure

We are subject to fluctuations in foreign currency exchange rates and may not be able to effectively hedge our exposure

including artificial intelligence (“AI”) opportunities, customer needs, business and finance strategies, macroeconomic conditions, fluctuations in foreign currency exchange rates, strategic investments, industry positioning, customer acquisition and retention, the amount of annualized recurring revenue and revenue growth

including artificial intelligence (“AI”) opportunities, customer needs, business and finance strategies, macroeconomic conditions, fluctuations in foreign currency exchange rates, strategic investments, industry positioning, customer acquisition and retention, the amount of annualized recurring revenue and revenue growth

for realized gains / losses on derivative instruments 23 ( 20 ) Net increase (decrease) from derivatives designated as hedging instruments ( 73 ) 74 Foreign currency translation adjustments 23 ( 32 ) Other comprehensive income (loss), net of taxes ( 50 ) 43 Total comprehensive income, net of taxes $ 1,839 $ 1,854 See accompanying notes to condensed consolidated financial statements

gains / losses on derivative instruments 23 ( 2 ) 46 ( 22 ) Net increase (decrease) from derivatives designated as hedging instruments 77 ( 283 ) 4 ( 209 ) Foreign currency translation adjustments ( 29 ) 108 ( 6 ) 76 Other comprehensive income (loss), net of taxes 48 ( 175 ) ( 2 ) ( 132 ) Total comprehensive income, net of taxes $ 1,760 $ 1,516 $ 3,599 $ 3,370 See accompanying notes to condensed consolidated fina

exposures from the evolving macroeconomic environment, including the effects of increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

We are subject to fluctuations in foreign currency exchange rates and may not be able to effectively hedge our exposure

for realized gains / losses on derivative instruments 23 ( 20 ) Net increase (decrease) from derivatives designated as hedging instruments ( 73 ) 74 Foreign currency translation adjustments 23 ( 32 ) Other comprehensive income (loss), net of taxes ( 50 ) 43 Total comprehensive income, net of taxes $ 1,839 $ 1,854 See accompanying notes to condensed consolidated financial statements

We are subject to fluctuations in foreign currency exchange rates and may not be able to effectively hedge our exposure

including artificial intelligence (“AI”) opportunities, customer needs, business and finance strategies, macroeconomic conditions, fluctuations in foreign currency exchange rates, strategic investments, industry positioning, customer acquisition and retention, the amount of annualized recurring revenue and revenue growth

Accordingly, we are exposed to changes in laws governing our employee relationships in various U.S. and foreign jurisdictions, including laws and regulations regarding wage and hour requirements, fair labor standards, employee data privacy, unemployment tax rates, workers’ compensation rates, citizenship requirements, immigration and payroll and other taxes, which likely would have a direct impact on our operating costs. Increasing regulatory focus on privacy and security issues and expanding laws and regul

Accordingly, we are exposed to changes in laws governing our employee relationships in various U.S. and foreign jurisdictions, including laws and regulations regarding wage and hour requirements, fair labor standards, employee data privacy, unemployment tax rates, workers’ compensation rates, citizenship requirements, immigration and payroll and other taxes, which likely would have a direct impact on our operating costs. Increasing regulatory focus on privacy and security issues and expanding laws and regul

Accordingly, we are exposed to changes in laws governing our employee relationships in various U.S. and foreign jurisdictions, including laws and regulations regarding wage and hour requirements, fair labor standards, employee data privacy, unemployment tax rates, workers’ compensation rates, citizenship requirements, immigration and payroll and other taxes, which likely would have a direct impact on our operating costs. 24 Table of Contents Increasing regulatory focus on privacy and security issues and exp

price over the value of the net tangible and identifiable intangible assets was recorded as goodwill. The resulting goodwill is primarily attributable to the assembled workforce and expected synergies from combining Semrush’s platform with Adobe’s existing offerings. Financial results and pro forma financial information have not been presented for the Semrush acquisition as the impact to our condensed consolidated financial statements was not material. NOTE 4. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTM

to change as new laws are passed and/or new interpretations are made available. These countries, governmental bodies, such as the European Commission of the European Union, and intergovernmental economic organizations, such as the Organization for Economic Cooperation and Development, have made and/or could make other unprecedented assertions about how taxation is determined and, in some cases, have proposed or enacted new laws that are contrary to the way in which rules and regulations have historically be

to change as new laws are passed and/or new interpretations are made available. These countries, governmental bodies, such as the European Commission of the European Union, and intergovernmental economic organizations, such as the Organization for Economic Cooperation and Development, have made and/or could make other unprecedented assertions about how taxation is determined and, in some cases, have proposed or enacted new laws that are contrary to the way in which rules and regulations have historically be

vital to our business growth, fueling the product innovation and value that we deliver to billions of people around the world. We are continually investing in our global workforce to provide fair and market-competitive pay and benefits to support our employees’ wellbeing and foster their growth and development. As of November 28, 2025, we employed 31,360 people, of which 50% were in the United States and 50% were in our international locations. During fiscal 2025, our total attrition rate was 9.9%. We have no

to change as new laws are passed and/or new interpretations are made available. These countries, governmental bodies, such as the European Commission of the European Union, and intergovernmental economic organizations, such as the Organization for Economic Cooperation and Development, have made and/or could make other unprecedented assertions about how taxation is determined and, in some cases, have proposed or enacted new laws that are contrary to the way in which rules and regulations have historically be

Accordingly, we are exposed to changes in laws governing our employee relationships in various U.S. and foreign jurisdictions, including laws and regulations regarding wage and hour requirements, fair labor standards, employee data privacy, unemployment tax rates, workers’ compensation rates, citizenship requirements, immigration and payroll and other taxes, which likely would have a direct impact on our operating costs. Increasing regulatory focus on privacy and security issues and expanding laws and regul

Accordingly, we are exposed to changes in laws governing our employee relationships in various U.S. and foreign jurisdictions, including laws and regulations regarding wage and hour requirements, fair labor standards, employee data privacy, unemployment tax rates, workers’ compensation rates, citizenship requirements, immigration and payroll and other taxes, which likely would have a direct impact on our operating costs. 24 Table of Contents Increasing regulatory focus on privacy and security issues and exp

to change as new laws are passed and/or new interpretations are made available. These countries, governmental bodies, such as the European Commission of the European Union, and intergovernmental economic organizations, such as the Organization for Economic Cooperation and Development, have made and/or could make other unprecedented assertions about how taxation is determined and, in some cases, have proposed or enacted new laws that are contrary to the way in which rules and regulations have historically be

vital to our business growth, fueling the product innovation and value that we deliver to billions of people around the world. We are continually investing in our global workforce to provide fair and market-competitive pay and benefits to support our employees’ wellbeing and foster their growth and development. As of November 28, 2025, we employed 31,360 people, of which 50% were in the United States and 50% were in our international locations. During fiscal 2025, our total attrition rate was 9.9%. We have no

to change as new laws are passed and/or new interpretations are made available. These countries, governmental bodies, such as the European Commission of the European Union, and intergovernmental economic organizations, such as the Organization for Economic Cooperation and Development, have made and/or could make other unprecedented assertions about how taxation is determined and, in some cases, have proposed or enacted new laws that are contrary to the way in which rules and regulations have historically be

Consolidated Financial Statements in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC, we make assumptions, judgments and estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities

currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

Jurisdictions around the world are developing and passing new regulations that apply specifically to the use of AI

Jurisdictions around the world are developing and passing new regulations that apply specifically to the use of AI

Jurisdictions around the world are developing and passing new regulations that apply specifically to the use of AI

GOVERNMENT REGULATION We operate globally and are subject to a wide range of laws and regulations in the U

Jurisdictions around the world are developing and passing new regulations that apply specifically to the use of AI

ND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U

currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

Consolidated Financial Statements in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC, we make assumptions, judgments and estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities

Jurisdictions around the world are developing and passing new regulations that apply specifically to the use of AI

I-driven solutions that enable them to create, manage and optimize personalized digital experiences at scale and to enhance brand visibility across the content supply chain

For marketing professionals, we unify creative production and marketing execution with content supply chain solutions that deliver end-to-end customer experience orchestration solutions, automate workflows and personalize experiences and engagement at scale across channels

contract acquisition costs, including sales commissions, travel expenses and related facilities costs for our sales, marketing, order management and global supply chain management personnel

For marketing professionals, we unify creative production and marketing execution with comprehensive content supply chain solutions that deliver end-to-end customer experience orchestration solutions, automate workflows and personalize experiences and engagement at scale across channels

Our solutions are incorporated into the supply chain of a large number of companies worldwide and, as a result, if our solutions experience a compromise, a large portion or, in some instances, all of our customers and their data for a given solution could be simultaneously affected

Our solutions are incorporated into the supply chain of a large number of companies worldwide and, as a result, if our solutions experience a compromise, a large portion or, in some instances, all of our customers and their data for a given solution could be simultaneously affected

Our solutions are incorporated into the supply chain of a large number of companies worldwide and, as a result, if our solutions experience a compromise, a large portion or, in some instances, all of our customers and their data for a given solution could be simultaneously affected

Our solutions are incorporated into the supply chain of a large number of companies worldwide and, as a result, if our solutions experience a compromise, a large portion or, in some instances, all of our customers and their data for a given solution could be simultaneously affected

contract acquisition costs, including sales commissions, travel expenses and related facilities costs for our sales, marketing, order management and global supply chain management personnel

Our solutions are incorporated into the supply chain of a large number of companies worldwide and, as a result, if our solutions experience a compromise, a large portion or, in some instances, all of our customers and their data for a given solution could be simultaneously affected

I-driven solutions that enable them to create, manage and optimize personalized digital experiences at scale and to enhance brand visibility across the content supply chain

For marketing professionals, we unify creative production and marketing execution with comprehensive content supply chain solutions that deliver end-to-end customer experience orchestration solutions, automate workflows and personalize experiences and engagement at scale across channels

require us to make substantial investments and these investments may not be successful. We have experienced, and may in the future experience, reputational harm, reduced customer demand and customer attrition from, among other things, the introduction of new products, features, services, or terms that do not meet customer expectations; our position on or approach to new and evolving technologies, including AI; backlash from customers, 39 Table of Contents the creative community, government entities or other sta

require us to make substantial investments and these investments may not be successful. We have experienced, and may in the future experience, reputational harm, reduced customer demand and customer attrition from, among other things, the introduction of new products, features, services, or terms that do not meet customer expectations; our position on or approach to new and evolving technologies, including AI; backlash from customers, the creative community, government entities or other stakeholders that disagr

require us to make substantial investments and these investments may not be successful. We have experienced, and may in the future experience, reputational harm, reduced customer demand and customer attrition from, among other things, the introduction of new products, features, services, or terms that do not meet customer expectations; our position on or approach to new and evolving technologies, including AI; backlash from customers, 37 Table of Contents the creative community, government entities or other sta

require us to make substantial investments and these investments may not be successful. We have experienced, and may in the future experience, reputational harm, reduced customer demand and customer attrition from, among other things, the introduction of new products, features, services, or terms that do not meet customer expectations; our position on or approach to new and evolving technologies, including AI; backlash from customers, the creative community, government entities or other stakeholders that disagr

require us to make substantial investments and these investments may not be successful. We have experienced, and may in the future experience, reputational harm, reduced customer demand and customer attrition from, among other things, the introduction of new products, features, services, or terms that do not meet customer expectations; our position on or approach to new and evolving technologies, including AI; backlash from customers, 37 Table of Contents the creative community, government entities or other sta

The technology industry has been and may continue to be subject to substantial and continuous competition for talent, particularly with AI and cybersecurity backgrounds, and demand for cutting-edge or unique skill sets may continue to be highly competitive, both of which are heightened with hybrid or remote working arrangements

The technology industry has been and may continue to be subject to substantial and continuous competition for talent, particularly with AI and cybersecurity backgrounds, and demand for cutting-edge or unique skill sets may continue to be highly competitive, both of which are heightened with hybrid or remote working arrangements

The technology industry has been and may continue to be subject to substantial and continuous competition for talent, particularly with AI and cybersecurity backgrounds, and demand for cutting-edge or unique skill sets may continue to be highly competitive, both of which are heightened with hybrid or remote working arrangements

Chakravarthy held multiple leadership roles at Symantec Corporation ("Symantec"), a cybersecurity software and services company, most recently serving as its Executive Vice President, Information Security from February 2013 to September 2013

including any instability or security concerns abroad, such as uncertainty caused by economic sanctions, downturns and recessions, trade disputes, tariffs, armed conflicts and wars, and epidemics and pandemics like COVID-19

including any instability or security concerns abroad, such as uncertainty caused by economic sanctions, downturns and recessions, trade disputes, tariffs, armed conflicts and wars, and epidemics and pandemics like COVID-19

including any instability or security concerns abroad, such as uncertainty caused by economic sanctions, downturns and recessions, trade disputes, tariffs, armed conflicts and wars, and epidemics and pandemics like COVID-19

creative, productivity or marketing trends or fail to devote appropriate resources to adapt to such trends, our business could be harmed

creative, productivity or marketing trends or fail to devote appropriate resources to adapt to such trends, our business could be harmed

Quarterly Report on Form 10-Q contains forward-looking statements, including statements regarding product plans, future growth, market opportunities, including artificial intelligence (“AI”) opportunities, customer needs, business and finance strategies, macroeconomic conditions, fluctuati

In the artificial intelligence (“AI”) era, we are harnessing the power of AI across our solutions by bringing together our commercially safe first-party and leading partner AI models best suited for the job

We have concluded that certain subscription offerings, which include both on-premise/on-device software licenses and cloud services, represent a single, highly integrated performance obligation

increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

increased global inflationary pressures and interest rates, fluctuations in foreign currency exchange rates, potential economic slowdowns or recessions and geopolitical pressures, including the unknown impacts of current and future trade regulations

Laws in Asia, such as the Personal Information Protection Law in China, Personal Information Protection Act in Korea and developing privacy laws in India, as well as state laws in the United States on privacy, data and related technologies, such as the California Consumer Privacy Act, the California Privacy Rights Act, the

well as through original equipment manufacturers and hardware manufacturers

Laws in Asia, such as the Personal Information Protection Law in China, Personal Information Protection Act in Korea and developing privacy laws in India, as well as state laws in the United States on privacy, data and related technologies, such as the California Consumer Privacy Act, the California Privacy Rights Act, the

security concerns abroad, such as uncertainty caused by economic sanctions, downturns and recessions, trade disputes, tariffs, armed conflicts and wars, and epidemics and pandemics like COVID-19; 22 Table of Contents • tax laws in the United States as well as other countries and jurisdictions; • increased financial accounting and reporting burdens and complexities; • changes in, or impositions of, legislative or regulatory requirements in the United States and other countries, including antitrust and compe

security concerns abroad, such as uncertainty caused by economic sanctions, downturns and recessions, trade disputes, tariffs, armed conflicts and wars, and epidemics and pandemics like COVID-19; • tax laws in the United States as well as other countries and jurisdictions; • increased financial accounting and reporting burdens and complexities; • changes in, or impositions of, legislative or regulatory requirements in the United States and other countries, including antitrust and competition regulations, c

service providers due to a major earthquake, other natural disasters, including climate-related events (such as flooding, water stress, heat waves, cyclones and wildfires), power shutoff or loss, telecommunications failure, cloud service provider outages, epidemic, pandemic, war, terrorist attack or other catastrophic event, could cause interruptions to our systems, solutions and business operations, damage to critical infrastructure, loss of intellectual property, data security breaches and data loss

service providers due to a major earthquake, other natural disasters, including climate-related events (such as flooding, water stress, heat waves, cyclones and wildfires), power shutoff or loss, telecommunications failure, cloud service provider outages, epidemic, pandemic, war, terrorist attack or other catastrophic event, could cause interruptions to our systems, solutions and business operations, damage to critical infrastructure, loss of intellectual property, data security breaches and data loss