How does Adobe (ADBE) make money?

Adobe (ADBE) primarily makes money through Digital Media, which accounts for 74.3% of total revenue. For TTM through Q1 2026, Adobe generated $24.45B in total revenue with a net profit margin of 29.5%.

What is Adobe (ADBE) gross profit margin?

Adobe (ADBE) reported a gross profit margin of 89.1% for TTM through Q1 2026, equivalent to $21.79B in gross profit. This means Adobe retains 89.1% of each revenue unit after direct costs of production.

What is Adobe (ADBE) operating profit margin?

Adobe (ADBE) reported an operating profit margin of 36.6% for TTM through Q1 2026, equivalent to $8.96B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Adobe (ADBE) net profit margin?

Adobe (ADBE) reported a net profit margin of 29.5% for TTM through Q1 2026, equivalent to $7.21B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Adobe (ADBE) invest in R&D?

Adobe (ADBE) invested $4.38B in research and development in TTM through Q1 2026 (17.9% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Adobe (ADBE) spend on capital expenditures?

Adobe (ADBE) spent $190.00M on capital expenditures in TTM through Q1 2026 (0.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Adobe (ADBE) free cash flow?

Adobe (ADBE) generated $10.32B in free cash flow for TTM through Q1 2026 (42.2% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Adobe (ADBE) effective tax rate?

Adobe (ADBE) had an effective tax rate of 19.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Adobe (ADBE) Makes Money: A Visual Guide

Adobe (ADBE) generated $24.45B in revenue, earning $7.21B in net profit (29.5% margin). Its largest revenue source is Digital Media (74.3% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Adobe (ADBE) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending February 27, 2026 (reported March 25, 2026).

Frequently asked questions

How does Adobe (ADBE) make money?: Adobe (ADBE) primarily makes money through Digital Media, which accounts for 74.3% of total revenue. For TTM through Q1 2026, Adobe generated $24.45B in total revenue with a net profit margin of 29.5%.
What is Adobe (ADBE) gross profit margin?: Adobe (ADBE) reported a gross profit margin of 89.1% for TTM through Q1 2026, equivalent to $21.79B in gross profit. This means Adobe retains 89.1% of each revenue unit after direct costs of production.
What is Adobe (ADBE) operating profit margin?: Adobe (ADBE) reported an operating profit margin of 36.6% for TTM through Q1 2026, equivalent to $8.96B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Adobe (ADBE) net profit margin?: Adobe (ADBE) reported a net profit margin of 29.5% for TTM through Q1 2026, equivalent to $7.21B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Adobe (ADBE) invest in R&D?: Adobe (ADBE) invested $4.38B in research and development in TTM through Q1 2026 (17.9% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Adobe (ADBE) spend on capital expenditures?: Adobe (ADBE) spent $190.00M on capital expenditures in TTM through Q1 2026 (0.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Adobe (ADBE) free cash flow?: Adobe (ADBE) generated $10.32B in free cash flow for TTM through Q1 2026 (42.2% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Adobe (ADBE) effective tax rate?: Adobe (ADBE) had an effective tax rate of 19.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.