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Adobe ADBE Subscription — Cost of revenue

Other product segments

Services and other
$124M-2.4%

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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$103.08B-29.7%
Enterprise value$105.23B-29.0%
P/E14.3×-7.1×
P/S4.1×-2.4×

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 source filing: Adobe’s 10-Q, filed June 15, 2026.

Filed
Jun 15, 2026, 6:04 AM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000796343-26-000112
Line itemThree Months Ended / May 29,2026Three Months Ended / May 30,2025Six Months Ended / May 29,2026Six Months Ended / May 30,2025
Services and other113144223280
Total revenue6,6185,87313,01611,587
Cost of revenue:
Subscription5865051,126995
Product561112
Services and other124127242253
Total cost of revenue7156381,3791,260
Gross profit5,9035,23511,63710,327

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FAQ

What is Adobe's subscription — cost of revenue?
Adobe (ADBE) reported subscription — cost of revenue of $586M in Q1 2026.
How has Adobe's subscription — cost of revenue changed year-over-year?
Adobe's subscription — cost of revenue increased by 16.0% year-over-year, from $505M to $586M.
What is the long-term trend for Adobe's subscription — cost of revenue?
Over 4 years (2021 to 2025), Adobe's subscription — cost of revenue has grown at a 10.2% compound annual growth rate (CAGR), from $1.37B to $2.03B.
What does subscription — cost of revenue mean?
This metric captures the direct costs associated with delivering subscription-based software services to customers, including cloud hosting infrastructure, customer support, and third-party licensing fees. It is a critical indicator of the scalability and operational efficiency of the digital service delivery model. Monitoring this helps assess the gross margin profile of the subscription business as it scales.

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