Adobe Inc. stock research
FY2026 Q1
Adobe (ADBE) Gross Margin — Quarter Ended Feb 27, 2026
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose over both periods. Gross profit grew accordingly, and gross margin improved slightly versus the prior quarter and more notably versus the year-ago quarter.
Gross margin takeaway
Quarter ended Feb 27, 2026 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose over both periods. Gross profit grew accordingly, and gross margin improved slightly versus the prior quarter and more notably versus the year-ago quarter.
- The strongest observable margin driver is the sustained high gross margin, which remained above the prior quarter and year-ago levels, indicating that revenue growth outpaced cost of revenue growth.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were higher, with cost of revenue higher as well.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.6%
Gross profit
$5.7B
Revenue
$6.4B
Cost of revenue
$664.0M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 30, 2025 | $5.9B | $5.2B | $638.0M | 89.1% |
| Aug 29, 2025 | $6.0B | $5.3B | $642.0M | 89.3% |
| Nov 28, 2025 | $6.2B | $5.5B | $649.0M | 89.5% |
| Feb 27, 2026 | $6.4B | $5.7B | $664.0M | 89.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 28, 2025
+0.1 pts
Year-over-year change
Feb 28, 2025
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sustained high gross margin, which remained above the prior quarter and year-ago levels, indicating that revenue growth outpaced cost of revenue growth.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were higher, with cost of revenue higher as well.
Monitor the trend in cost of revenue, which increased sequentially and year-over-year, to see if it continues to grow relative to revenue.