ADOBE INC. (Form: 8-K, Received: 12/10/2025 16:06:28)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (date of earliest event reported): December 10, 2025

ADOBE INC.

(Exact name of Registrant as specified in its charter)

Delaware

0-15175

77-0019522

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

345 Park Avenue

San Jose, California 95110-2704

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (408) 536-6000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.0001 par value per share	ADBE	NASDAQ Global Select Market

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On December 10, 2025, Adobe Inc. (“Adobe”) issued a press release announcing financial results for its fourth quarter and fiscal year 2025 ended November 28, 2025. A copy of this press release is furnished and attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in this report and the exhibit attached hereto are being furnished and shall not be deemed filed for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly stated by specific reference in such filing.

The attached press release includes non-GAAP adjusted or constant currency revenue growth rates, non-GAAP operating income, non-GAAP net income, non-GAAP diluted net income per share (earnings per share), non-GAAP operating margin and non-GAAP tax rate.

These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.

We use these non-GAAP financial measures in making operating decisions because we believe the measures provide meaningful supplemental information regarding our operational performance and give us a better understanding of how we should invest in research and development and fund infrastructure and go-to-market strategies. We use these measures to help us make budgeting decisions, for example, as between product development expenses and research and development, sales and marketing and general and administrative expenses and to facilitate our internal comparisons to our historical operating results. In addition, we believe these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. This allows institutional investors, the analyst community and others to better understand and evaluate our operating results and future prospects in the same manner as management and to compare operating results across accounting periods and to those of our peer companies.

We include adjusted or constant currency revenue growth rates to provide a framework for assessing how our underlying businesses have performed or are expected to perform on a year-over-year basis, excluding the effects of foreign currency rate fluctuations and the impact of our 52/53-week fiscal year, if applicable. Adjusted or constant currency revenue growth rates are calculated in constant currency by converting non-United States Dollar revenue using comparative period exchange rates and determining the change from prior period reported revenue, adjusted for any hedging effects.

In addition, we use non-GAAP financial measures which exclude:

A. Stock-based and deferred compensation expenses. Stock-based compensation expense consists of charges for employee restricted stock units, performance shares and employee stock purchases in accordance with current GAAP including stock-based compensation expense associated with any unvested options and restricted stock units assumed in connection with our acquisitions. We believe that it is useful to investors to understand the impact of the application of accounting standards pertaining to stock-based compensation to our operational performance, liquidity and our ability to invest in research and development and fund acquisitions and capital expenditures. Deferred compensation expense consists of charges associated with movements in our deferred compensation plan liability. Although stock-based compensation and deferred compensation expenses constitute ongoing and recurring expenses, such expenses are excluded from non-GAAP results because they are not expenses that typically require current cash settlement by us and because such expenses are not used by us to assess the core profitability of our business operations. We further believe these measures are useful to investors in that they allow for greater transparency to certain line items in our financial statements. In addition, excluding these items from various non-GAAP measures facilitates comparisons to our competitors’ operating results.

B. Amortization of intangibles. We recognize amortization expense of intangibles in connection with our acquisitions. Intangibles include (i) purchased technology, (ii) trademarks, (iii) customer contracts and relationships and (iv) other intangible assets. In accordance with GAAP, we amortize the fair value of the intangibles based on the pattern in which we expect the economic benefits of the intangibles will be consumed as revenue is generated. Although the intangibles generate revenue for us, we exclude this item because the expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance, liquidity and our ability to invest in research and development, fund acquisitions and capital expenditures. In addition, excluding this item

from various non-GAAP measures facilitates our internal comparisons to our historical operating results and comparisons to our competitors’ operating results.

C. Acquisition-related expenses. We exclude certain acquisition-related expenses, including deal costs and certain professional fees, associated with significant acquisitions. Acquisition-related expenses are inconsistent in amount and are significantly impacted by the timing and nature of each transaction. Therefore, although we have in the past and may in the future continue to incur these types of expenses in connection with acquisitions, such expenses are excluded from our non-GAAP financial measures because these expenses are not used by us to assess the core profitability of our business operations. Consequently, we believe the non-GAAP financial measures excluding these expenses facilitate more meaningful evaluation of the core profitability of our business operations and comparisons to our historical operating results, and allow for greater transparency to certain line items in our financial statements.

D. Investment gains and losses. We recognize investment gains and losses principally from realized gains or losses from the sale and exchange of marketable equity investments, fair value adjustments and impairments to non-marketable equity securities, unrealized holding gains and losses associated with our deferred compensation plan assets and marketable equity securities, gains and losses on the sale of equity securities held indirectly through investment partnerships and gains and losses associated with the recording of equity or non-marketable investments to fair value upon obtaining control through a business combination, as required by GAAP. We do not actively trade publicly held securities nor do we rely on these securities positions for funding our ongoing operations. We exclude investment gains and losses on these equity securities because these items are unrelated to our ongoing business and operating results.

E. Accrued loss contingencies associated with significant litigation events. In connection with ongoing litigation or similar events, we accrue losses in the event such losses are determined to be both probable and estimable under Accounting Standards Codification (ASC) 450-20, Loss Contingencies, although such litigation may be under appeal. As new facts and circumstances arise, we adjust the accrual accordingly. We exclude the impact of such loss contingencies when they relate to significant events that are unrelated to our ongoing business and operating results.

F. Lease-related asset impairments and other charges. We exclude charges associated with significant facilities optimization efforts, including costs related to the impairment, abandonment or early termination of office spaces under operating leases. We exclude the impact of such charges because they are unrelated to our ongoing business and operating results.

G. Income tax adjustments. In determining our non-GAAP provision for income taxes, which can differ significantly from our GAAP provision for income taxes, we apply a fixed long-term projected non-GAAP tax rate that excludes certain significant, non-recurring and period-specific income tax effects, such as changes in judgment or estimates of tax matters related to prior years, changes in tax laws, and changes to our business structure including impacts from business combinations. The application of a fixed long-term non-GAAP tax rate helps us assess the core profitability of our business operations and compare to our historical operating results. In arriving at the long-term non-GAAP tax rates used in fiscal 2025 and 2026, we evaluated currently available information for the three-year periods from fiscal 2023 through 2025 and projections and currently available information for fiscal 2026 through 2028, respectively. The projected long-term non-GAAP tax rate could be subject to change for several reasons, including significant changes in our geographic earnings mix or in application of tax laws in major jurisdictions in which we operate. As such, we periodically re-evaluate the appropriateness of the long-term non-GAAP tax rate and may adjust for significant changes.

H. Income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Excluding the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to our ongoing operations.

We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our financial results as determined in accordance with GAAP and that these measures should only be used to evaluate our financial results in conjunction with the corresponding GAAP measures; therefore we qualify the use of non-GAAP financial information in a statement when non-GAAP information is presented.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits


Exhibit Number						Exhibit Description

99.1						Press release issued on December 10, 2025 entitled “Adobe Reports Record Q4 and FY2025 Revenue”

104						Cover Page Interactive Data File (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			ADOBE INC.

			By:			/s/ DANIEL DURN
						Daniel Durn
						Chief Financial Officer and Executive Vice President, Finance, Technology, Security and Operations

Date: December 10, 2025

Exhibit 99.1

Investor Relations Contact

Doug Clark

Adobe

ir@adobe.com

Public Relations Contact

Ashley Levine

Adobe

adobepr@adobe.com

FOR IMMEDIATE RELEASE

Adobe Reports Record Q4 and FY2025 Revenue

•Exceeds target for FY2025 Digital Media ending ARR and targets FY2026 Total Adobe ending ARR to grow over 10%

•Delivers record operating cash flows of over $10 billion in FY2025

SAN JOSE, Calif. – Dec. 10, 2025 – Adobe (Nasdaq:ADBE), the global technology leader that unleashes creativity and productivity for individuals and businesses through innovative platforms and tools, today reported financial results for its fourth quarter and FY2025 ended Nov. 28, 2025.

“Adobe’s record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools,” said Shantanu Narayen, chair and CEO, Adobe. “By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026.”

“Adobe delivered another outstanding year, fueled by strong global demand for our AI solutions across Business Professionals & Consumers and Creative & Marketing Professionals customer groups,” said Dan Durn, executive vice president and CFO, Adobe. “Looking ahead to FY2026, we are confident in our ability to deliver industry-leading innovations, double-digit ARR growth and world class profitability.”

Fourth Quarter FY2025 Financial Highlights

•Adobe achieved record revenue of $6.19 billion in its fourth quarter of FY2025, which represents 10% year-over-year growth as reported and in constant currency. Diluted earnings per share was $4.45 on a GAAP basis and $5.50 on a non-GAAP basis.

•GAAP operating income in the fourth quarter was $2.26 billion and non-GAAP operating income was $2.82 billion. GAAP net income was $1.86 billion and non-GAAP net income was $2.29 billion.

•Record cash flows from operations were $3.16 billion.

•Exiting the quarter, Remaining Performance Obligations (“RPO”) were $22.52 billion, and Current Remaining Performance Obligations (“cRPO”) were 65%.

•Adobe repurchased approximately 7.2 million shares during the quarter.

Fourth Quarter FY2025 Business Segment Highlights

•Digital Media segment revenue was $4.62 billion, which represents 11% year-over-year growth as reported and in constant currency.

•Digital Experience segment revenue was $1.52 billion, representing 9% year-over-year growth, or 8% in constant currency. Digital Experience subscription revenue was $1.41 billion, representing 11% year-over-year growth as reported and in constant currency.

Fourth Quarter FY2025 Customer Group Highlights

•Total Customer Group subscription revenue was $5.96 billion which represents 12% year-over-year growth, or 11% in constant currency.

•Business Professionals & Consumers subscription revenue was $1.72 billion, which represents 15% year-over-year growth, or 14% in constant currency.

•Creative & Marketing Professionals subscription revenue was $4.25 billion, which represents 11% year-over-year growth, or 10% in constant currency.

FY2025 Financial Highlights

•Adobe achieved revenue of $23.77 billion in FY2025, which represents 11% year-over-year growth as reported and in constant currency. Diluted earnings per share was $16.70 on a GAAP basis and $20.94 on a non-GAAP basis.

•Total Adobe Annualized Recurring Revenue (“ARR”) exiting the year was $25.20 billion, representing 11.5% year-over-year growth.

•GAAP operating income was $8.71 billion and non-GAAP operating income was $10.99 billion. GAAP net income was $7.13 billion and non-GAAP net income was $8.94 billion.

•Adobe generated $10.03 billion in operating cash flows during the year.

•Adobe repurchased approximately 30.8 million shares during the year.

FY2025 Business Segment Highlights

•Digital Media segment revenue was $17.65 billion, which represents 11% year-over-year growth as reported and in constant currency. Digital Media ARR exiting the year was $19.20 billion, representing 11.5% year-over-year growth.

•Digital Experience segment revenue was $5.86 billion, representing 9% year-over-year growth as reported and in constant currency. Digital Experience subscription revenue was $5.41 billion, representing 11% year-over-year growth as reported and in constant currency.

FY2025 Customer Group Highlights

•Total Customer Group subscription revenue was $22.80 billion, which represents 12% year-over-year growth as reported and in constant currency.

•Business Professionals & Consumers subscription revenue was $6.50 billion, which represents 15% year-over-year growth as reported and in constant currency.

•Creative & Marketing Professional subscription revenue was $16.30 billion, which represents 11% year-over-year growth as reported and in constant currency.

Disclosure Updates

Beginning in FY2026, we will implement reporting and guidance changes. Our reporting and guidance will focus on customer group subscription revenue and total company ending ARR year-over-year growth, while also guiding on total Adobe revenue and EPS. We will continue to report subscription revenue for Digital Media and Digital Experience as supplemental disclosures.

Financial Targets

We revalued ending ARR at the end of FY2025 which resulted in a $460 million increase to Total Adobe ARR, from $25.20 billion to $25.66 billion entering FY2026, primarily from foreign exchange rate changes. We now provide historical information on Total Adobe ARR going back to FY2023 in our investor data sheet.

These targets factor in expectation for current macroeconomic conditions and do not include any contributions from Semrush Holdings, Inc., subject to regulatory approvals and other customary closing conditions.

The following table summarizes Adobe’s FY2026 targets1:


Total revenue	$25.90 billion to $26.10 billion
Business Professionals & Consumers subscription revenue	$7.35 billion to $7.40 billion
Creative & Marketing Professionals subscription revenue	$17.75 billion to $17.90 billion
Total Adobe ending ARR growth	10.2% year over year
Earnings per share	GAAP: $17.90 to $18.10	Non-GAAP: $23.30 to $23.50

1Targets assume non-GAAP operating margin of ~45.0%, GAAP tax rate of ~20.5%, non-GAAP tax rate of ~18.0% and diluted share count of ~403 million for FY2026.

The following table summarizes Adobe’s first quarter FY2026 targets2:


Total revenue	$6.25 billion to $6.30 billion
Business Professionals & Consumers subscription revenue	$1.74 billion to $1.76 billion
Creative & Marketing Professionals subscription revenue	$4.30 billion to $4.33 billion
Earnings per share	GAAP: $4.55 to $4.60	Non-GAAP: $5.85 to $5.90

2Targets assume non-GAAP operating margin of ~47.0%, GAAP tax rate of ~21.5%, non-GAAP tax rate of ~18.0% and diluted share count of ~411 million for first quarter FY2026.

Additional Information

Total Customer Group Subscription Revenue represents all subscription revenue across Business Professionals & Consumers and Creative & Marketing Professionals.

Total Adobe ARR represents the annual value of subscription contracts in the Creative & Marketing Professionals and Business Professionals & Consumers customer groups.

Total AI-Influenced ARR reflects ARR from the product offerings and tiers that the customers select that are enhanced by AI features and functionalities embedded in the product. We will periodically update product offerings and tiers included in Total AI-Influenced ARR based on new AI capabilities and workflows.

Adobe to Host Conference Call

Adobe will webcast its fourth quarter and fiscal year 2025 earnings conference call today at 2:00 p.m. Pacific Time from its investor relations website: http://www.adobe.com/ADBE. Earnings documents, including Adobe management’s prepared conference call remarks with slides and an investor datasheet are posted to Adobe’s Investor Relations Website in advance of the conference call for reference.

Forward-Looking Statements, Non-GAAP and Other Disclosures

In addition to historical information, this press release contains “forward-looking statements” within the meaning of applicable securities laws, including statements related to our business, strategy, artificial intelligence (“AI”) and innovation momentum; our market and AI opportunity and future growth; market and AI trends; current macroeconomic conditions; fluctuations in foreign currency exchange rates; strategic investments; customer success and groups; expectations regarding acquisitions and other business transactions; and our financial targets and assumptions related thereto, including revenue, operating margin, operating efficiencies, annualized recurring revenue, tax rate, earnings per share and share count. Each of the forward-looking statements we make in this press release involves risks, uncertainties and assumptions based on information available to us as of the date of this press release. Such risks and uncertainties, many of which relate to matters beyond our control, could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: failure to innovate effectively and meet customer needs; issues relating to development and use of AI; failure to compete effectively; damage to our reputation or brands; failure to realize the anticipated benefits of investments or acquisitions; service interruptions or failures in information technology systems by us or third parties; security incidents; failure to effectively develop, manage and maintain critical third-party business relationships; risks associated with being a multinational corporation and adverse macroeconomic conditions; complex sales cycles; failure to recruit and retain key personnel; litigation, regulatory inquiries and intellectual property infringement claims; changes in, and compliance with, global laws and regulations, including those related to information security and privacy; failure to protect our intellectual property; changes in tax regulations; complex government procurement processes; risks related to fluctuations in or the timing of revenue recognition from our subscription offerings; fluctuations in foreign currency exchange rates; impairment charges; our existing and future debt obligations; catastrophic events; and fluctuations in our stock price. Further information on these and other factors are discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and Adobe's most recently filed Quarterly Reports on Form 10-Q. The risks described in this press release and in Adobe’s filings with the U.S. Securities and Exchange Commission should be carefully reviewed.

Undue reliance should not be placed on the financial information set forth in this press release, which reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Annual Report on Form 10-K for our fiscal year ended Nov. 28, 2025, which Adobe expects to file in Jan. 2026.

Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.

A reconciliation between GAAP and non-GAAP earnings results and financial targets and a statement regarding use of non-GAAP financial information are provided at the end of this press release and on Adobe’s investor relations website. Definitions of our non-GAAP financial measures are provided in the Current Report on Form 8-K relating to this press release.

About Adobe

Adobe is changing the world through personalized digital experiences. For more information, visit www.adobe.com.

###

©2025 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries) in the United States and/or other countries. All other trademarks are the property of their respective owners.

Condensed Consolidated Statements of Income

(In millions, except per share data; unaudited)


	Three Months Ended				Year Ended
	November 28, 2025		November 29, 2024		November 28, 2025		November 29, 2024
Revenue:
Subscription	$	5,989	$	5,365	$	22,904	$	20,521
Product	74		81		325		386
Services and other	131		160		540		598
Total revenue	6,194		5,606		23,769		21,505

Cost of revenue:
Subscription	522		475		2,027		1,799
Product	6		6		23		25
Services and other	121		135		501		534
Total cost of revenue	649		616		2,551		2,358

Gross profit	5,545		4,990		21,218		19,147

Operating expenses:
Research and development	1,098		999		4,294		3,944
Sales and marketing	1,728		1,536		6,488		5,764
General and administrative	421		456		1,573		1,529

Acquisition termination fee	—		—		—		1,000
Amortization of intangibles	37		42		157		169
Total operating expenses	3,284		3,033		12,512		12,406

Operating income	2,261		1,957		8,706		6,741

Non-operating income (expense):
Interest expense	(66)		(50)		(263)		(169)
Investment gains (losses), net	12		14		43		48
Other income (expense), net	57		70		248		311
Total non-operating income (expense), net	3		34		28		190
Income before income taxes	2,264		1,991		8,734		6,931
Provision for income taxes	408		308		1,604		1,371
Net income	$	1,856	$	1,683	$	7,130	$	5,560
Basic net income per share	$	4.45	$	3.81	$	16.73	$	12.43
Shares used to compute basic net income per share	417		441		426		447
Diluted net income per share	$	4.45	$	3.79	$	16.70	$	12.36
Shares used to compute diluted net income per share	417		443		427		450

Condensed Consolidated Balance Sheets

(In millions; unaudited)


	November 28, 2025		November 29, 2024
ASSETS

Current assets:
Cash and cash equivalents	$	5,431	$	7,613
Short-term investments	1,164		273
Trade receivables, net of allowances for doubtful accounts of $13 and $14, respectively	2,344		2,072
Prepaid expenses and other current assets	1,224		1,274
Total current assets	10,163		11,232

Property and equipment, net	1,873		1,936
Operating lease right-of-use assets, net	312		281
Goodwill	12,857		12,788
Other intangibles, net	495		782

Deferred income taxes	2,186		1,657
Other assets	1,610		1,554
Total assets	$	29,496	$	30,230

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Trade payables	$	417	$	361
Accrued expenses and other current liabilities	2,648		2,336
Debt	—		1,499
Deferred revenue	6,905		6,131
Income taxes payable	153		119
Operating lease liabilities	77		75
Total current liabilities	10,200		10,521

Long-term liabilities:
Debt	6,210		4,129
Deferred revenue	125		128
Income taxes payable	469		548
Operating lease liabilities	361		353
Other liabilities	508		446
Total liabilities	17,873		16,125

Stockholders’ equity:
Preferred stock	—		—
Common stock	—		—
Additional paid-in capital	15,361		13,419
Retained earnings	45,354		38,470
Accumulated other comprehensive income (loss)	(245)		(201)
Treasury stock, at cost	(48,847)		(37,583)
Total stockholders’ equity	11,623		14,105
Total liabilities and stockholders’ equity	$	29,496	$	30,230

Condensed Consolidated Statements of Cash Flows

(In millions; unaudited)


	Three Months Ended
	November 28, 2025		November 29, 2024
Cash flows from operating activities:
Net income	$	1,856	$	1,683
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	184		218
Stock-based compensation	489		441
Lease-related asset impairments	—		78


Other non-cash adjustments	(109)		(116)
Changes in deferred revenue	496		353
Changes in other operating assets and liabilities	244		264
Net cash provided by operating activities	3,160		2,921

Cash flows from investing activities:
Purchases, sales and maturities of short-term investments, net	(194)		50
Purchases of property and equipment	(34)		(48)

Purchases and sales of long-term investments, intangibles and other assets, net	82		17

Net cash provided by (used for) investing activities	(146)		19

Cash flows from financing activities:
Repurchases of common stock	(2,474)		(2,500)
Taxes paid related to net share settlement of equity awards, net of proceeds from treasury stock re-issuances	(94)		(152)


Other financing activities, net	13		151

Net cash used for financing activities	(2,555)		(2,501)
Effect of exchange rate changes on cash and cash equivalents	(10)		(19)
Net change in cash and cash equivalents	449		420
Cash and cash equivalents at beginning of period	4,982		7,193
Cash and cash equivalents at end of period	$	5,431	$	7,613

Non-GAAP Results

The following table shows Adobe’s GAAP results reconciled to non-GAAP results included in this release.


(In millions, except per share data)	Three Months Ended						Year Ended
	November 28, 2025		November 29, 2024		August 29, 2025		November 28, 2025		November 29, 2024
Operating income:

GAAP operating income	$	2,261	$	1,957	$	2,173	$	8,706	$	6,741
Stock-based and deferred compensation expense	501		455		521		1,973		1,881
Amortization of intangibles	61		84		79		306		334
Acquisition-related expenses	1		—		—		1		1,007
Loss contingency (reversal)	—		—		—		—		(44)
Lease-related asset impairments and other charges	—		100		—		—		100
Non-GAAP operating income	$	2,824	$	2,596	$	2,773	$	10,986	$	10,019

Net income:

GAAP net income	$	1,856	$	1,683	$	1,772	$	7,130	$	5,560
Stock-based and deferred compensation expense	501		455		521		1,973		1,881

Amortization of intangibles	61		84		79		306		334
Acquisition-related expenses	1		—		—		1		1,007
Loss contingency (reversal)	—		—		—		—		(44)
Lease-related asset impairments and other charges	—		100		—		—		100
Investment (gains) losses, net	(12)		(14)		(23)		(43)		(48)
Income tax adjustments	(113)		(176)		(97)		(426)		(509)
Non-GAAP net income	$	2,294	$	2,132	$	2,252	$	8,941	$	8,281

Diluted net income per share:

GAAP diluted net income per share	$	4.45	$	3.79	$	4.18	$	16.70	$	12.36
Stock-based and deferred compensation expense	1.20		1.03		1.23		4.62		4.18

Amortization of intangibles	0.15		0.19		0.19		0.72		0.75
Acquisition-related expenses	—		—		—		—		2.24
Loss contingency (reversal)	—		—		—		—		(0.10)
Lease-related asset impairments and other charges	—		0.23		—		—		0.22
Investment (gains) losses, net	(0.03)		(0.03)		(0.05)		(0.10)		(0.10)
Income tax adjustments	(0.27)		(0.40)		(0.24)		(1.00)		(1.13)
Non-GAAP diluted net income per share	$	5.50	$	4.81	$	5.31	$	20.94	$	18.42

Shares used to compute diluted net income per share	417		443		424		427		450

Non-GAAP Results (continued)

The following table shows Adobe’s fourth quarter fiscal year 2025 GAAP tax rate reconciled to the non-GAAP tax rate included in this release.


	Fourth Quarter Fiscal 2025
Effective income tax rate:

GAAP effective income tax rate		18.0	%
Income tax adjustments		3.0

Stock-based and deferred compensation expense		(2.3)
Amortization of intangibles		(0.3)

Investment gains (losses), net		0.1
Non-GAAP effective income tax rate (*)		18.5	%

(*) Represents Adobe’s fixed long-term non-GAAP tax rate applicable for fiscal 2023 through fiscal 2025

Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions

The following tables show Adobe's annual fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.


(Shares in millions)	Fiscal Year 2026
	Low		High
Diluted net income per share:

GAAP diluted net income per share	$	17.90	$	18.10
Stock-based and deferred compensation expense		5.51		5.50
Amortization of intangibles		0.39		0.39



Income tax adjustments		(0.50)		(0.49)
Non-GAAP diluted net income per share	$	23.30	$	23.50

Shares used to compute diluted net income per share	403		403


	Fiscal Year 2026
Operating margin:

GAAP operating margin		36.0	%
Stock-based and deferred compensation expense		8.4
Amortization of intangibles		0.6
Non-GAAP operating margin		45.0	%


	Fiscal Year 2026
Effective income tax rate:

GAAP effective income tax rate		20.5	%
Stock-based and deferred compensation expense		(2.5)





Non-GAAP effective income tax rate (*)		18.0	%

(*) Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028

Reconciliation of GAAP to Non-GAAP Financial Targets and Assumptions (continued)

The following tables show Adobe's first quarter fiscal year 2026 financial targets and assumptions reconciled to non-GAAP financial targets and assumptions included in this release.


(Shares in millions)	First Quarter Fiscal 2026
	Low		High
Diluted net income per share:

GAAP diluted net income per share	$	4.55			$	4.60
Stock-based and deferred compensation expense		1.24				1.24
Amortization of intangibles		0.10				0.10



Income tax adjustments		(0.04)				(0.04)
Non-GAAP diluted net income per share	$	5.85			$	5.90

Shares used to compute diluted net income per share	411			411


	First Quarter Fiscal 2026
Operating margin:

GAAP operating margin		38.0	%
Stock-based and deferred compensation expense		8.4
Amortization of intangibles		0.6
Non-GAAP operating margin		47.0	%


	First Quarter Fiscal 2026
Effective income tax rate:

GAAP effective income tax rate		21.5	%
Stock-based and deferred compensation expense		(3.0)




Income tax adjustments		(0.5)
Non-GAAP effective income tax rate (*)		18.0	%

(*) Represents Adobe’s fixed long-term non-GAAP tax rate based on projections and currently available information for fiscal 2026 through fiscal 2028

Use of Non-GAAP Financial Information

Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe's operating results. Adobe believes these non-GAAP financial measures are useful because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. This allows institutional investors, the analyst community and others to better understand and evaluate Adobe’s operating results and future prospects in the same manner as management.

Adobe's management believes it is useful for itself and investors to review, as applicable, both GAAP information as well as non-GAAP measures, which may exclude items such as stock-based and deferred compensation expenses, amortization of intangibles, investment gains and losses, income tax adjustments and other items that are not considered part of Adobe’s ongoing operations, and the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes. Adobe uses these non-GAAP measures in order to assess the performance of Adobe's business and for planning and forecasting in subsequent periods. Whenever such a non-GAAP measure is used, Adobe provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.