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Adobe ADBE Product — Cost of revenue

Other product segments

Subscription
$586M+16.0%
Services and other
$124M-2.4%

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$12.14M+15.8%

Other financials

Income statement

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Revenue$6.6B+12.7%
Gross profit$5.9B+12.8%
Operating income$2.2B+6.1%
Net income$1.7B+1.2%
EPS (diluted)$4.25+7.9%

Balance sheet

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Cash & equivalents$4.9B-0.2%
Total debt$7.1B+7.6%
Total equity$11.5B+0.6%
Total assets$29.9B+6.5%

Cash flow

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Operating cash flow$2.2B-1.2%
CapEx$58.0M+23.4%
Free cash flow$2.1B-1.7%

Valuation

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Market cap$78.14B-51.9%
Enterprise value$80.28B-51.1%
P/E10.8×-12.8×
P/S3.1×-4.1×

Profitability

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Gross margin89.4%+0.2pp
Operating margin36.1%-0.3pp
Net margin28.7%-1.7pp
FCF margin40.8%-1.0pp

Returns & leverage

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Return on equity63%+10.7pp
Debt / equity0.6×0.0×
Current ratio0.8×-0.2×

Where this comes from

Reported directly by Adobe in its filing.

Tagged under the XBRL concept us-gaap:CostOfRevenue.

The official record: Adobe’s 10-Q, filed June 15, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Adobe's product — cost of revenue?
Adobe (ADBE) reported product — cost of revenue of $5M in Q1 2026.
How has Adobe's product — cost of revenue changed year-over-year?
Adobe's product — cost of revenue decreased by 16.7% year-over-year, from $6M to $5M.
What is the long-term trend for Adobe's product — cost of revenue?
Over 4 years (2021 to 2025), Adobe's product — cost of revenue has grown at a -13.5% compound annual growth rate (CAGR), from $41M to $23M.
What does product — cost of revenue mean?
This metric measures the direct costs associated with producing and delivering legacy software products, including physical media distribution, third-party royalties, and direct support overhead. It represents the expenses required to maintain and fulfill non-subscription product sales. Tracking this allows management to evaluate the profitability and operational efficiency of legacy product lines.