Adobe beats Q2 earnings expectations, announces CFO departure

Adobe just posted fiscal Q2 2026 results that cleared Wall Street’s bar on revenue, earnings per share, and operating income. The company also issued upbeat guidance for both Q3 and the full fiscal year.

The “mostly” part: CFO Dan Durn is leaving the company in June. That’s a notable exit at a time when Adobe is navigating one of the rockier stretches in its recent history, with shares down roughly 37% year-to-date heading into the report.

The numbers that matter

Adobe had set its own Q2 guidance at $6.43 to $6.48 billion in revenue and non-GAAP EPS of $5.80 to $5.85. The company beat on both counts, along with operating income.

For context, Adobe’s Q1 FY2026 revenue came in at $6.40 billion, representing 12% year-over-year growth, with non-GAAP EPS of $6.06. That Q1 print had already topped consensus estimates hovering around $5.87 to $5.88 per share.

The company has been running non-GAAP operating margins in the 44% to 47% range in recent quarters.

Leadership turnover at a precarious moment

Durn joined Adobe in October 2021. His exit comes just months after CEO Shantanu Narayen announced in March 2026 that he would step down after 18 years leading the company. Narayen plans to remain as chair during the transition.

Durn is expected to participate in the earnings call, which should provide some clarity on succession planning.

The AI problem that earnings can’t solve

Adobe’s 37% stock decline in 2026 has been attributed to concerns over whether the company can defend its creative software franchise against AI-native competitors. Adobe has responded with Firefly, its own generative AI model, and has been weaving AI capabilities across its product suite.

Adobe’s annual recurring revenue growth target of approximately 10.2% for the full year suggests management isn’t seeing meaningful churn in the subscription base. Adobe’s ongoing share buyback program and non-GAAP operating margins in the 44% to 47% range give it financial flexibility to invest in AI without sacrificing earnings quality.

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