ADBE · 10-Q · 2026Q3 · Full report

Operating Expense Trends

ADOBE INC. · 2026-09-22 · Importance 60 · Surprise 40 · No source text

Third-quarter operating expenses increased 15% to $3.64 billion from $3.17 billion, while nine-month operating expenses increased to $10.62 billion from $9.23 billion. Third-quarter research and development expense rose 18% to $1.29 billion, driven primarily by higher compensation costs and, to a lesser extent, hosting and data-center costs, including AI training costs. Sales and marketing expense increased 11% to $1.83 billion, primarily because of higher advertising and compensation costs. Nine-month general and administrative expense increased to $1.50 billion from $1.15 billion due to compensation, professional and consulting fees, software licenses, legal loss contingencies and a goodwill impairment charge related to the Publishing & Advertising reporting unit.

Key facts

• Operating expenses were $3.64 billion during the three months ended August 28, 2026, an increase of $470 million, or 15%, compared to the year-ago period. source
• Research and development expenses were $1,288 million for the three months ended August 28, 2026, up from $1,088 million for the three months ended August 29, 2025. source
• Sales and marketing expenses were $1,827 million for the three months ended August 28, 2026, up from $1,639 million for the three months ended August 29, 2025. source
• During the nine months ended August 28, 2026, we recorded a goodwill impairment charge related to our Publishing & Advertising reporting unit. source
• General and administrative expenses increased during the nine months ended August 28, 2026 due to increases in compensation costs, professional and consulting fees, software licenses, loss contingency and impairment of goodwill. source

Impact estimates