Name: Adobe Inc. (NASDAQ:ADBE) | Common-Size Income Statement (Quarterly)
Creator: Stock Analysis on Net

Common-Size Income Statement
Quarterly Data

Adobe Inc., common-size consolidated income statement (quarterly data)

3 months ended:	Aug 28, 2026	May 29, 2026	Feb 27, 2026	Nov 28, 2025	Aug 29, 2025	May 30, 2025	Feb 28, 2025	Nov 29, 2024	Aug 30, 2024	May 31, 2024	Mar 1, 2024	Dec 1, 2023	Sep 1, 2023	Jun 2, 2023	Mar 3, 2023	Dec 2, 2022	Sep 2, 2022	Jun 3, 2022	Mar 4, 2022	Dec 3, 2021	Sep 3, 2021	Jun 4, 2021	Mar 5, 2021	Nov 27, 2020	Aug 28, 2020	May 29, 2020	Feb 28, 2020
Subscription	97.37%	96.95%	96.87%	96.69%	96.71%	96.05%	95.96%	95.70%	95.78%	95.31%	94.87%	94.35%	94.70%	93.79%	93.94%	93.52%	93.12%	92.80%	92.87%	92.75%	92.94%	91.79%	91.78%	90.98%	91.41%	90.51%	88.39%
Product	0.99%	1.34%	1.41%	1.19%	1.14%	1.50%	1.66%	1.44%	1.52%	1.96%	2.30%	2.26%	1.96%	2.70%	2.58%	2.54%	2.84%	3.33%	3.40%	3.11%	3.02%	3.99%	3.97%	3.71%	3.38%	4.09%	4.63%
Services and other	1.64%	1.71%	1.72%	2.11%	2.15%	2.45%	2.38%	2.85%	2.70%	2.73%	2.84%	3.39%	3.33%	3.51%	3.48%	3.93%	4.04%	3.88%	3.73%	4.14%	4.04%	4.22%	4.25%	5.32%	5.21%	5.40%	6.99%
Revenue	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Subscription	-9.36%	-8.85%	-8.44%	-8.43%	-8.52%	-8.60%	-8.58%	-8.47%	-7.64%	-8.59%	-8.78%	-10.00%	-9.14%	-9.05%	-9.32%	-9.50%	-9.32%	-9.35%	-9.22%	-9.20%	-8.74%	-8.55%	-8.30%	-8.27%	-8.74%	-8.60%	-8.86%
Product	-0.07%	-0.08%	-0.09%	-0.10%	-0.08%	-0.10%	-0.11%	-0.11%	-0.11%	-0.15%	-0.10%	-0.12%	-0.14%	-0.17%	-0.17%	-0.18%	-0.18%	-0.21%	-0.23%	-0.29%	-0.25%	-0.23%	-0.26%	-0.29%	-0.31%	-0.29%	-0.23%
Services and other	-1.85%	-1.87%	-1.84%	-1.95%	-2.12%	-2.16%	-2.21%	-2.41%	-2.50%	-2.52%	-2.51%	-2.44%	-2.58%	-2.66%	-2.71%	-2.87%	-2.82%	-2.74%	-2.56%	-2.85%	-2.87%	-2.79%	-2.89%	-3.94%	-4.19%	-4.38%	-5.53%
Cost of revenue	-11.29%	-10.80%	-10.38%	-10.48%	-10.72%	-10.86%	-10.89%	-10.99%	-10.24%	-11.26%	-11.39%	-12.56%	-11.86%	-11.88%	-12.20%	-12.55%	-12.32%	-12.29%	-12.01%	-12.34%	-11.87%	-11.58%	-11.45%	-12.50%	-13.24%	-13.27%	-14.62%
Gross profit	88.71%	89.20%	89.62%	89.52%	89.28%	89.14%	89.11%	89.01%	89.76%	88.74%	88.61%	87.44%	88.14%	88.12%	87.80%	87.45%	87.68%	87.71%	87.99%	87.66%	88.13%	88.42%	88.55%	87.50%	86.76%	86.73%	85.38%
Research and development	-19.05%	-18.10%	-17.35%	-17.73%	-18.17%	-18.42%	-17.96%	-17.82%	-18.90%	-18.53%	-18.12%	-17.61%	-18.02%	-18.19%	-17.77%	-17.08%	-17.48%	-16.83%	-16.45%	-15.99%	-16.54%	-15.96%	-15.88%	-16.30%	-17.55%	-17.01%	-17.21%
Sales and marketing	-27.03%	-28.47%	-26.70%	-27.90%	-27.37%	-27.69%	-26.16%	-27.40%	-26.46%	-27.22%	-26.09%	-27.10%	-27.34%	-27.93%	-27.95%	-28.66%	-28.56%	-28.43%	-27.17%	-27.52%	-27.14%	-27.98%	-26.86%	-27.48%	-27.66%	-28.80%	-27.73%
General and administrative	-7.22%	-8.25%	-7.24%	-6.80%	-6.81%	-6.42%	-6.42%	-8.13%	-6.77%	-6.69%	-6.79%	-7.37%	-7.22%	-7.41%	-7.11%	-7.51%	-7.20%	-6.63%	-6.31%	-6.67%	-6.73%	-6.68%	-7.43%	-7.10%	-7.13%	-7.16%	-8.77%
Acquisition termination fee	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-19.30%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Amortization of intangibles	-0.59%	-0.56%	-0.55%	-0.60%	-0.63%	-0.70%	-0.72%	-0.75%	-0.80%	-0.79%	-0.81%	-0.83%	-0.86%	-0.87%	-0.90%	-0.93%	-0.97%	-0.96%	-0.99%	-0.97%	-1.09%	-1.15%	-1.15%	-1.14%	-1.27%	-1.28%	-1.36%
Operating expenses	-53.89%	-55.38%	-51.83%	-53.02%	-52.99%	-53.23%	-51.26%	-54.10%	-52.92%	-53.23%	-71.11%	-52.91%	-53.44%	-54.40%	-53.73%	-54.19%	-54.21%	-52.85%	-50.92%	-51.14%	-51.51%	-51.76%	-51.32%	-52.02%	-53.61%	-54.25%	-55.06%
Operating income	34.82%	33.82%	37.79%	36.50%	36.29%	35.91%	37.85%	34.91%	36.83%	35.51%	17.50%	34.53%	34.70%	33.72%	34.07%	33.26%	33.48%	34.86%	37.07%	36.52%	36.62%	36.66%	37.23%	35.48%	33.15%	32.48%	30.31%
Interest expense	-0.98%	-0.98%	-0.98%	-1.07%	-1.12%	-1.16%	-1.09%	-0.89%	-0.94%	-0.77%	-0.52%	-0.55%	-0.55%	-0.54%	-0.69%	-0.62%	-0.63%	-0.64%	-0.66%	-0.68%	-0.69%	-0.73%	-0.77%	-0.79%	-0.87%	-0.90%	-1.07%
Investment gains (losses), net	0.31%	0.27%	0.08%	0.19%	0.38%	0.03%	0.11%	0.25%	0.22%	0.08%	0.35%	0.08%	0.12%	0.10%	0.02%	0.09%	-0.14%	-0.18%	-0.21%	-0.10%	0.18%	0.21%	0.13%	0.18%	0.31%	0.00%	-0.10%
Other income (expense), net	0.71%	0.71%	0.97%	0.92%	0.97%	0.99%	1.31%	1.25%	1.65%	1.54%	1.35%	1.76%	1.37%	0.98%	0.92%	0.80%	0.14%	-0.02%	0.00%	-0.02%	-0.08%	0.00%	0.10%	0.09%	0.28%	0.38%	0.58%
Non-operating income (expense), net	0.04%	0.00%	0.06%	0.05%	0.23%	-0.14%	0.33%	0.61%	0.92%	0.85%	1.18%	1.29%	0.94%	0.54%	0.26%	0.27%	-0.63%	-0.84%	-0.87%	-0.80%	-0.58%	-0.52%	-0.54%	-0.53%	-0.28%	-0.51%	-0.58%
Income before income taxes	34.87%	33.82%	37.86%	36.55%	36.52%	35.77%	38.19%	35.52%	37.76%	36.35%	18.68%	35.82%	35.64%	34.26%	34.33%	33.52%	32.84%	34.02%	36.20%	35.72%	36.04%	36.14%	36.70%	34.96%	32.87%	31.97%	29.73%
(Provision for) benefit from income taxes	-7.84%	-7.95%	-8.33%	-6.59%	-6.93%	-6.98%	-6.49%	-5.49%	-6.62%	-6.72%	-6.72%	-6.44%	-6.95%	-7.37%	-7.54%	-7.54%	-7.22%	-7.16%	-6.50%	-5.72%	-5.24%	-7.04%	-4.40%	30.75%	-3.26%	3.20%	1.16%
Net income	27.03%	25.87%	29.52%	29.96%	29.59%	28.79%	31.69%	30.02%	31.14%	29.63%	11.96%	29.38%	28.69%	26.89%	26.79%	25.99%	25.63%	26.86%	29.70%	30.00%	30.80%	29.10%	32.29%	65.71%	29.61%	35.17%	30.90%

The financial trajectory of the company indicates a comprehensive strategic transition toward a subscription-dominated revenue model, resulting in enhanced gross margins and consistent operating profitability despite occasional non-recurring expenses.

Revenue Composition: A decisive shift in the revenue mix is evident, with subscription revenue increasing from 88.39% in February 2020 to 97.37% by August 2026. This growth occurred at the expense of both product and services revenue. Product revenue declined from 4.63% to 0.99%, while services and other revenue decreased from 6.99% to 1.64%, signaling a near-total migration to a Software-as-a-Service (SaaS) model.
Gross Profitability: Gross profit margins demonstrate a steady upward trend, rising from 85.38% in early 2020 to a peak of 89.62% in February 2026, ending at 88.71%. This expansion is supported by a reduction in the cost of revenue as a percentage of total revenue, which fell from 14.62% to 11.29% over the analyzed period.
Operating Expense Analysis: Research and development expenses remained a significant investment, fluctuating between 15.88% and 19.05% of revenue. Sales and marketing costs were relatively stable, generally oscillating between 26% and 28.8%. General and administrative expenses showed a gradual decline from 8.77% in February 2020 to 7.22% by August 2026, suggesting improvements in administrative efficiency.
Operating Income and Anomalies: Operating income margins remained robust, typically ranging between 33% and 37%. A significant outlier occurred in March 2024, where operating income dropped to 17.50% due to a one-time acquisition termination fee amounting to 19.30% of revenue. Excluding this event, the company maintained high operational leverage and consistent profitability.
Net Income and Tax Impact: Net income margins exhibit higher volatility than operating margins due to fluctuations in income tax provisions. While margins generally hovered between 25% and 31%, an anomalous peak of 65.71% was recorded in November 2020, driven by a substantial tax benefit of 30.75% of revenue. In recent periods, net income has stabilized, ending at 27.03% in August 2026.

Overall, the data reflects a company that has successfully optimized its business model for recurring revenue, maintaining high gross and operating margins while managing a lean administrative cost structure.

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Adobe Inc. (NASDAQ:ADBE)

Common-Size Income StatementQuarterly Data

Common-Size Income Statement
Quarterly Data