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Adobe ADBE Subscription — Cost of revenue

Other product segments

Services and other
$124M-2.4%

Similar metrics at other companies

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ADSKCost of subscription revenue — Cost of revenue
$129M+16.2%
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VEEVSubscription — Total cost of revenues
$99.1M+26.5%
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MDBSubscription — Total Cost of Revenue
$164.91M+27.3%
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OKTASubscription — Total Cost of Revenue
$150M+10.3%
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ROKUSubscriptions — Total Cost of Revenue
$305.41M+49.7%
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WDAYSubscription services — Total costs and expenses
$412M+17.7%

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$77.58B-40.5%
Enterprise value$79.72B-39.8%
P/E10.7×-8.2×
P/S3.1×-2.7×

Profitability

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

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 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?
The direct expenses incurred to provide and maintain subscription software services for customers.
How do you interpret subscription — cost of revenue?
A decrease relative to revenue suggests improved operational efficiency and economies of scale, whereas an increase may indicate rising cloud infrastructure costs or higher service delivery overhead.
How does subscription — cost of revenue compare across companies?
Comparable to Cost of Goods Sold (COGS) for software services or direct service delivery costs reported by peer technology companies.