Financial Analysis

COMMITMENTS AND CONTINGENCIES Unconditional Purchase Obligations Our principal commitments consist of purchase obligations resulting from agreements to purchase goods and services in the ordinary course of business. The following table summarizes our non-cancellable unconditional purchase obligations for each of the next five years and thereafter as of November 28, 2025, primarily relating to contracts with vendors for third-party hosting and data center services: (in millions) Fiscal Year Purchase Obligations 2026 $ 2,083 2027 1,901 2028 1,623 2029 1,196 2030 12 Thereafter 6 Total $ 6,821 Acquisitions On November 18, 2025, we entered into a definitive agreement to acquire Semrush Holdings, Inc., a publicly held brand visibility platform company, for approximately $1.9 billion of cash consideration. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the first half of fiscal 2026. Royalties We have royalty commitments associated with the licensing of certain offerings and products. Royalty expense is generally based on a dollar amount per unit or a percentage of the underlying revenue. Royalty expense, which was recorded in our cost of revenue on our Consolidated Statements of Income, was approximately $283 million, $259 million and $246 million in fiscal 2025, 2024 and 2023, respectively. Indemnifications In the ordinary course of business, we provide indemnifications of varying scope to our customers and channel pa …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

BENEFIT PLANS Retirement Savings Plan The Adobe Inc. 401(k) Retirement Savings Plan, qualified under Section 401(k) of the Internal Revenue Code, is a retirement savings plan covering substantially all of our U.S. employees. Under the plan, eligible employees may contribute up to 65% of their pretax or after-tax salary, subject to the IRS annual contribution limits. In fiscal 2025, we matched 50% of the first 6% of the employees eligible compensation. We contributed $96 million, $91 million and $85 million in fiscal 2025, 2024 and 2023, respectively. We are under no obligation to continue matching future employee contributions and, at our discretion, may change our practices at any time. Deferred Compensation Plan The Adobe Inc. Deferred Compensation Plan is an unfunded, non-qualified, deferred compensation arrangement under which certain executives are able to defer a portion of their annual compensation. Participants may elect to contribute up to 75% of their base salary and 100% of other specified compensation, including commissions and bonuses. Members of the Board of Directors are also eligible to participate and are able to defer their directors fees and elect cash benefit distributions in the same manner as executives. Additionally, members of the Board are permitted to defer equity awards. Participants are able to elect the payment of benefits to begin on a specified date at least three years after the end of the plan year in which election is made or, with respect to …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

DEBT The carrying value of our borrowings as of November 28, 2025 and November 29, 2024 were as follows: (dollars in millions) Issuance Date Due Date Effective Interest Rate 2025 2024 1.90% 2025 Notes February 2020 February 2025 2.07% $ $ 500 3.25% 2025 Notes January 2015 February 2025 3.67% 1,000 2.15% 2027 Notes February 2020 February 2027 2.26% 850 850 4.85% 2027 Notes April 2024 April 2027 5.03% 500 500 4.75% 2028 Notes January 2025 January 2028 4.93% 800 4.80% 2029 Notes April 2024 April 2029 4.93% 750 750 4.95% 2030 Notes January 2025 January 2030 5.09% 700 2.30% 2030 Notes February 2020 February 2030 2.69% 1,300 1,300 4.95% 2034 Notes April 2024 April 2034 5.03% 750 750 5.30% 2035 Notes January 2025 January 2035 5.40% 500 Total debt outstanding, at par $ 6,150 $ 5,650 Less: Current portion of debt, at par (1,500) Fair value of interest rate swaps 86 Unamortized discount and debt issuance costs (26) (21) Carrying value of long-term debt $ 6,210 $ 4,129 Current portion of debt, at par $ $ 1,500 Unamortized discount and debt issuance costs (1) Carrying value of current debt $ $ 1,499 Senior Notes In January 2025, we issued $800 million of senior notes due January 17, 2028, $700 million of senior notes due January 17, 2030 and $500 million of senior notes due January 17, 2035. Our total proceeds were approximately $1.99 billion, net of an issuance discount of $3 million and total issuance costs of $9 million. In February 2025, $1.5 billion of senior notes became due and we …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Subscription revenue by segment for fiscal 2025, 2024 and 2023 were as follows: (in millions) 2025 2024 2023 Digital Media $ 17,389 $ 15,547 $ 13,838 Digital Experience 5,409 4,864 4,331 Publishing and Advertising 106 110 115 Total subscription revenue $ 22,904 $ 20,521 $ 18,284 Digital Media and Digital Experience subscription revenue by customer group for fiscal 2025, 2024 and 2023 were as follows: (in millions) 2025 2024 2023 Creative & Marketing Professionals $ 16,303 $ 14,749 $ 13,425 Business Professionals & Consumers 6,495 5,662 4,744 Total Digital Media and Digital Experience subscription revenue $ 22,798 $ 20,411 $ 18,169

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STOCK-BASED COMPENSATION Our stock-based compensation programs are long-term retention programs that are intended to attract, retain and provide incentives for employees, officers and directors, and to align stockholder and employee interests. We have the following stock-based compensation plans and programs: Restricted Stock Units and Performance Share Programs We grant restricted stock units and performance share awards to eligible employees under our 2019 Equity Incentive Plan (2019 Plan). Restricted stock units generally vest over four years. Certain grants have other vesting periods approved by the Executive Compensation Committee of our Board of Directors (the ECC). As of November 28, 2025, we had reserved 76.0 million shares of our common stock for issuance under our 2019 Plan and had 32.8 million shares available for grant. Our Performance Share Programs aim to help focus key employees on building stockholder value, provide significant award potential for achieving outstanding company performance and enhance our ability to attract and retain highly talented and competent individuals. The ECC approves the terms of each of our Performance Share Programs, including the award calculation methodology. In January 2025, the ECC approved the 2025 Performance Share Program. Shares outstanding under our 2025, 2024 and 2023 Performance Share Programs may be earned based on the achievement of (i) an objective relative total stockholder return measured over a three-year performanc …

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FAIR VALUE MEASUREMENTS Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The fair value of our financial assets and liabilities at November 28, 2025 was determined using the following inputs: (in millions) Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Corporate debt securities $ 928 $ $ 928 $ Money market funds 3,607 3,607 Time deposits 85 85 U.S. Treasury securities 100 100 Short-term investments: Corporate debt securities 914 914 U.S. Treasury securities 250 250 Prepaid expenses and other current assets: Foreign currency derivatives 62 62 Interest rate swap derivatives 2 2 Other assets: Deferred compensation plan assets 342 342 Foreign currency derivatives 22 22 Interest rate swap derivatives 92 92 Total assets $ 6,404 $ 4,034 $ 2,370 $ Liabilities: Accrued expenses and other current liabilities: Foreign currency derivatives $ 94 $ $ 94 $ Interest rate swap derivatives 8 8 Other liabilities: Foreign currency derivatives 6 6 Total liabilities $ 108 $ $ 108 $ The fair value of our financial assets and liabilities at November 29, 2024 was determined using the following inputs: (in millions) Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (L …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLES Goodwill by reportable segment and activity was as follows: (in millions) Digital Media Digital Experience Publishing and Advertising Total Goodwill Balances at December 1, 2023 $ 3,890 $ 8,517 $ 398 $ 12,805 Foreign currency translation (1) (16) (17) Balances at November 29, 2024 $ 3,889 $ 8,501 $ 398 $ 12,788 Acquisitions 14 14 Foreign currency translation 3 52 55 Balances at November 28, 2025 $ 3,906 $ 8,553 $ 398 $ 12,857 During the second quarter of fiscal 2025, we completed our annual goodwill impairment test associated with our reporting units and, based on the qualitative assessment, determined there was no impairment of goodwill. We did not identify any events or changes in circumstances since the performance of our annual goodwill impairment test that would require us to perform another goodwill impairment test during the fiscal year. Other intangibles, net, as of November 28, 2025 and November 29, 2024 were as follows: (dollars in millions) 2025 2024 Gross Carrying Amount Accumulated Amortization Net Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Customer contracts and relationships $ 1,208 $ (857) $ 351 10 $ 1,203 $ (742) $ 461 Purchased technology 881 (853) 28 6 877 (704) 173 Trademarks 372 (301) 71 9 372 (258) 114 Other 60 (15) 45 7 42 (8) 34 Other intangibles, net $ 2,521 $ (2,026) $ 495 $ 2,494 $ (1,712) $ 782 Amortization expense related to other intangibles was $310 million, $336 million …

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INCOME TAXES Income before income taxes for fiscal 2025, 2024 and 2023 consisted of the following: (in millions) 2025 2024 2023 Domestic $ 6,721 $ 4,160 $ 3,465 Foreign 2,013 2,771 3,334 Income before income taxes $ 8,734 $ 6,931 $ 6,799 The provision for income taxes for fiscal 2025, 2024 and 2023 consisted of the following: (in millions) 2025 2024 2023 Current: United States federal $ 1,509 $ 1,292 $ 1,198 Foreign 348 315 335 State and local 261 232 260 Total current 2,118 1,839 1,793 Deferred: United States federal (499) (580) (556) Foreign 40 179 227 State and local (55) (67) (93) Total deferred (514) (468) (422) Provision for income taxes $ 1,604 $ 1,371 $ 1,371 Reconciliation of Provision for Income Taxes Total income tax expense differed from the income tax expense computed at the U.S. federal statutory rate of 21% as a result of the following: (in millions) 2025 2024 2023 Tax expense computed at U.S. federal statutory rate $ 1,834 $ 1,456 $ 1,428 Effects of non-U.S. operations (300) (198) (116) Tax credits (154) (150) (130) Tax settlements (55) (85) (14) State tax expense, net of federal benefit 171 139 132 Stock-based compensation 90 (23) 29 Acquisition termination fee 210 Other 18 22 42 Provision for income taxes $ 1,604 $ 1,371 $ 1,371 Deferred Tax Assets and Liabilities The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of November 28, 2025 and November 29, 2024 were as follows: (in mil …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES We lease certain facilities and data centers under non-cancellable operating lease arrangements that expire at various dates through 2038. We also have one land lease that expires in 2091. Our lease agreements do not contain any material residual value guarantees, material variable payment provisions or material restrictive covenants. Operating lease expense was $92 million, $106 million and $117 million for fiscal 2025, 2024 and 2023, respectively. Our operating lease expense includes variable lease costs and is net of sublease income, both of which are not material. During fiscal 2024, we recognized impairment charges of $78 million associated with the optimization of our leased facilities, primarily for operating lease right-of-use assets and leasehold improvements, which were recorded as general and administrative expenses. There was no impairment recognized in the other periods presented. Supplemental cash flow information for fiscal 2025, 2024 and 2023 related to operating leases was as follows: (in millions) 2025 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 95 $ 85 $ 97 Right-of-use assets obtained in exchange for operating lease liabilities $ 86 $ 62 $ 32 The weighted-average remaining lease term and weighted-average discount rate for our operating lease liabilities as of November 28, 2025 were 6 years and 3.30%, respectively. As of November 28, 2025, the maturities of lease liabilities under operating leases were …

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REVENUE Segment Information We report segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our Chief Executive Officer, the companys chief operating decision maker (CODM), reviews revenue and gross margin information for each of our segments to assess segment performance and allocate resources. Segment revenue and gross margin information is primarily reviewed by comparing actual results to prior period results. Our CODM does not review individual significant costs within segment cost of revenue to assess performance, and also does not review operating expense or asset information on a segment by segment basis. During fiscal 2025, our business was organized into the following reportable segments: Digital Media Our Digital Media segment provides products and services that enable individuals, teams, businesses, and enterprises to create, publish and promote their content anywhere and accelerate their productivity by transforming how they view, share, engage with and collaborate on documents and creative content. Our customers span creative professionals, including graphic designers, photographers, videographers, illustrators and 3D artists; creators, including social media influencers and solopreneurs; business professionals, including social media teams, small business owners and knowledge workers; and consumers. …

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ACQUISITIONS Semrush On April 28, 2026, we completed the acquisition of Semrush Holdings, Inc. (Semrush), a publicly held brand visibility platform company, for $1.87 billion, primarily in cash consideration. The acquisition enhances our ability to serve marketers at every scale, with solutions for search engine optimization, generative engine optimization and agentic search optimization. Following the closing, we began integrating Semrush into our operations and have included the financial results of Semrush in our condensed consolidated financial statements beginning on the acquisition date. Purchase Price Allocation The table below represents the preliminary purchase price allocation to the acquired net tangible and intangible assets of Semrush based on their estimated fair values as of the acquisition date and the associated estimated useful lives at that date. The fair values assigned to assets acquired and liabilities assumed are based on managements best estimates and assumptions as of the reporting date. (dollars in millions) Amount Weighted Average Useful Life (years) Purchased technology $ 415 7 Customer contracts and relationships 107 11 Trademarks 60 7 Total identifiable intangible assets 582 Cash and cash equivalents 262 N/A Other net liabilities assumed (1) (221) N/A Goodwill (2) 1,251 N/A Total purchase price $ 1,874 _________________________________________ (1) Primarily comprised of deferred revenue and deferred tax liabilities. (2) Non-deductible for income …

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COMMITMENTS AND CONTINGENCIES Indemnifications In the ordinary course of business, we provide indemnifications of varying scope to our customers and channel partners against claims of intellectual property infringement made by third parties arising from the use of our products and from time to time, we are subject to claims by our customers under these indemnification provisions. Historically, costs related to these indemnification provisions have not been significant and we are unable to estimate the maximum potential impact of these indemnification provisions on our future results of operations. To the extent permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity. The indemnification period covers all pertinent events and occurrences during the officers or directors lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have director and officer insurance coverage that reduces our exposure and enables us to recover a portion of any future amounts paid. We believe the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Legal Proceedings We are subject to legal proceedings, claims, including claims relating to intellectual property, consumer protection, commercial, emp …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Senior Notes The carrying value of our senior notes as of May 29, 2026 and November 28, 2025 were as follows: (dollars in millions) Issuance Date Due Date Effective Interest Rate 2026 2025 2.15% 2027 Notes February 2020 February 2027 2.26% $ 850 $ 850 4.85% 2027 Notes April 2024 April 2027 5.03% 500 500 4.75% 2028 Notes January 2025 January 2028 4.93% 800 800 4.80% 2029 Notes April 2024 April 2029 4.93% 750 750 4.95% 2030 Notes January 2025 January 2030 5.09% 700 700 2.30% 2030 Notes February 2020 February 2030 2.69% 1,300 1,300 4.95% 2034 Notes April 2024 April 2034 5.03% 750 750 5.30% 2035 Notes January 2025 January 2035 5.40% 500 500 Total senior notes outstanding, at par $ 6,150 $ 6,150 Less: Current portion of senior notes, at par (1,350) Fair value of interest rate swaps 23 86 Unamortized discount and debt issuance costs (21) (26) Carrying value of long-term senior notes $ 4,802 $ 6,210 Current portion of senior notes, at par $ 1,350 $ Unamortized discount and debt issuance costs (1) Carrying value of current senior notes $ 1,349 $ Our senior notes rank equally with our other unsecured and unsubordinated indebtedness, and do not contain financial covenants. We may redeem the notes at any time, subject to a make-whole premium. We have entered into interest rate swaps related to certain of our senior notes. The interest rate swaps effectively convert the fixed interest rates on the notes to floating interest rates based on the SOFR OIS. The fair value of the interest …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenue by geographic area for the three and six months ended May 29, 2026 and May 30, 2025 were as follows: Three Months Six Months (in millions) 2026 2025 2026 2025 Americas $ 3,872 $ 3,500 $ 7,627 $ 6,905 EMEA 1,809 1,541 3,548 3,043 APAC 937 832 1,841 1,639 Total $ 6,618 $ 5,873 $ 13,016 $ 11,587 Subscription revenue for the three and six months ended May 29, 2026 and May 30, 2025 were as follows: Three Months Six Months (in millions) 2026 2025 2026 2025 Creative & Marketing Professionals customer group $ 4,537 $ 4,019 $ 8,926 $ 7,941 Business Professionals & Consumers customer group 1,853 1,595 3,635 3,129 Total customer group subscription revenue $ 6,390 $ 5,614 $ 12,561 $ 11,070 Other subscription revenue 26 27 53 54 Total subscription revenue $ 6,416 $ 5,641 $ 12,614 $ 11,124

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STOCK-BASED COMPENSATION Restricted Stock Units Restricted stock unit activity for the six months ended May 29, 2026 was as follows: Number of Shares (in millions) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in millions) Beginning outstanding balance 7.9 $ 436.52 Awarded 7.0 $ 293.34 Released (2.0) $ 421.11 Forfeited (0.5) $ 406.22 Increase due to acquisition 0.4 $ 215.23 Ending outstanding balance 12.8 $ 355.44 $ 3,312 Expected to vest 11.7 $ 356.94 $ 3,019 The total fair value of restricted stock units vested during the six months ended May 29, 2026 was $541 million. Performance Shares In the first quarter of fiscal 2026, the Executive Compensation Committee of our Board of Directors (the ECC) approved the 2026 Performance Share Program, the terms of which are similar to the 2025 Performance Share Program that is still outstanding. For information regarding our outstanding Performance Share Programs, including the terms, see Note 12. Stock-Based Compensation of our Annual Report on Form 10-K for the fiscal year ended November 28, 2025. As of May 29, 2026, performance shares awarded under our 2026, 2025 and 2024 Performance Share Programs remained outstanding and unvested. Performance share activity for the six months ended May 29, 2026 was as follows: Number of Shares (in millions) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in millions) Beginning outstanding balance 0.6 $ 501.16 Awarded 0.3 $ 339.26 Released (0.2) $ 472.18 Forfei …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The fair value of our financial assets and liabilities at May 29, 2026 was determined using the following inputs: (in millions) Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Corporate debt securities $ 806 $ $ 806 $ Money market funds 3,252 3,252 Time deposits 95 95 Short-term investments: Corporate debt securities 606 606 U.S. Treasury securities 101 101 Prepaid expenses and other current assets: Foreign currency derivatives 69 69 Other assets: 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 liabilities: Foreign currency derivatives 9 9 Interest rate swap derivatives 2 2 Total liabilities $ 110 $ $ 110 $ The fair value of our financial assets and liabilities at November 28, 2025 was determined using the following inputs: (in millions) Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLES Goodwill as of May 29, 2026 and November 28, 2025 was $14.04 billion and $12.86 billion, respectively. The increase was due to our acquisition of Semrush in the second quarter of fiscal 2026, partially offset by a goodwill impairment charge of $70 million associated with our Publishing & Advertising reporting unit, which was recorded in general and administrative expenses. Other intangible assets subject to amortization as of May 29, 2026 and November 28, 2025 were as follows: (in millions) 2026 2025 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer contracts and relationships $ 1,117 $ (711) $ 406 $ 1,208 $ (857) $ 351 Purchased technology 490 (60) 430 881 (853) 28 Trademarks 402 (291) 111 372 (301) 71 Other 81 (16) 65 60 (15) 45 Other intangibles, net $ 2,090 $ (1,078) $ 1,012 $ 2,521 $ (2,026) $ 495 During the six months ended May 29, 2026, other intangibles, net, increased primarily due to identifiable intangible assets acquired through Semrush, partially offset by amortization expense. Amortization expense related to other intangibles was $50 million and $91 million for the three and six months ended May 29, 2026, respectively. Comparatively, amortization expense related to other intangibles was $83 million and $167 million for the three and six months ended May 30, 2025, respectively. Of these amounts, $12 million and $17 million were included in cost of revenue for the three …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Not Yet Effective In December 2023, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes, which prescribes standardized categories and disaggregation of information in the reconciliation of provision for income taxes, requires disclosure of disaggregated income taxes paid, and modifies other income tax-related disclosure requirements. The updated standard is effective for our annual report for fiscal 2026. We are currently evaluating the impact that the updated standard will have on our annual financial statement disclosures. In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures, which requires additional disclosure of certain costs and expenses within the notes to the financial statements. The updated standard is effective for our annual periods beginning in fiscal 2028 and interim periods beginning in the first quarter of fiscal 2029. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. In September 2025, the FASB issued ASU No. 2025-06, IntangiblesGoodwill and OtherInternal-Use Software, which modernizes the accounting for internal-use software and clarifies capitalization criteria. The updated standard is effective for us beginning with our interim and annual reporting periods of fiscal 2029. Early adoption i …

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REVENUE Our revenue is derived from the sale of cloud-enabled software subscriptions, cloud-hosted offerings, term-based, royalty, and perpetual software licenses, associated software maintenance and support plans, consulting services, training and technical support. Disaggregation of Revenue Revenue by geographic area for the three and six months ended May 29, 2026 and May 30, 2025 were as follows: Three Months Six Months (in millions) 2026 2025 2026 2025 Americas $ 3,872 $ 3,500 $ 7,627 $ 6,905 EMEA 1,809 1,541 3,548 3,043 APAC 937 832 1,841 1,639 Total $ 6,618 $ 5,873 $ 13,016 $ 11,587 Subscription revenue for the three and six months ended May 29, 2026 and May 30, 2025 were as follows: Three Months Six Months (in millions) 2026 2025 2026 2025 Creative & Marketing Professionals customer group $ 4,537 $ 4,019 $ 8,926 $ 7,941 Business Professionals & Consumers customer group 1,853 1,595 3,635 3,129 Total customer group subscription revenue $ 6,390 $ 5,614 $ 12,561 $ 11,070 Other subscription revenue 26 27 53 54 Total subscription revenue $ 6,416 $ 5,641 $ 12,614 $ 11,124 Contract Balances A receivable is recorded when an unconditional right to invoice and receive payment exists, such that only the passage of time is required before payment of consideration is due. Included in trade receivables on the condensed consolidated balance sheets are unbilled receivable balances which have not yet been invoiced, and are mainly related to subscription revenue that has been del …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION We report segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. In the first quarter of fiscal 2026, we combined our former segmentsDigital Media, Digital Experience and Publishing and Advertisinginto a single operating and reportable segment due to changes in how management evaluates results and allocates resources, reflecting the Companys shift to unified selling motions and integrated product innovation. Prior period information in the table below has been recast to reflect this change. Our Chief Executive Officer, the Companys chief operating decision maker, reviews consolidated results, including net income, to assess segment performance and allocate resources. This information is primarily reviewed by comparing actual results to prior period results and to quarterly and annual forecasts. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets. Information about our single reportable segment revenue, net income and significant segment expenses for the three and six months ended May 29, 2026 and May 30, 2025 were as follows: Three Months Ended Six Months Ended (dollars in millions) 2026 2025 2026 2025 Revenue $ 6,618 $ 5,873 $ 13,016 $ 11,587 Less: Cost of revenue (1) 669 565 1,299 1,115 Research and development expenses (1) 911 834 1,745 1,61 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing