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Adobe cash flow, quarter by quarter

Latest: Q3 FY26 · from the cash-flow statements filed with the SEC

Free cash flow$2.4B in Q3 FY26 · $10.6B over twelve months

Operating cash flow$2.5B
Capital spending−$85.0M
Free cash flow+$2.4B
Cash / net income1.4×
Cash conversion cycle-34 days

Analysis

In Q3 FY26, Adobe generated $2.5B of operating cash flow and spent $85.0M on capital projects, leaving free cash flow of $2.4B.

Over the twelve months to Aug 28, 2026, operating cash flow was $10.8B; the largest uses were buybacks ($9.3B), acquisitions ($1.6B), taxes on employees’ shares ($400M); besides operations, cash came from shares issued ($262M), net borrowing (+) / repaid (−) ($243M); the cash balance fell by $623M.

Operating cash flow was $2.5B against net income of $1.8B — 1.4× profit, cash ran ahead of reported earnings. The largest differences: stock-based pay +$539M, depreciation & amortization +$215M, prepaid and other assets −$120M.

Its cash conversion cycle was -34 days (receivables 27 + inventory 0 − payables 61): suppliers fund its working capital.

Free cash flow

Adobe: free cash flow by quarterAdobe: free cash flow by quarter$2.9BQ4 FY24$2.5BQ1 FY25$2.1BQ2 FY25$2.1BQ3 FY25$3.1BQ4 FY25$2.9BQ1 FY26$2.1BQ2 FY26$2.4BQ3 FY26
Operating cash flow less capital spending.
Adobe: operating cash flow against capital spendingAdobe: operating cash flow against capital spendingOperating cash flowCapital spending$2.9B$48.0MQ4 FY24$2.5B$26.0MQ1 FY25$2.2B$47.0MQ2 FY25$2.2B$72.0MQ3 FY25$3.2B$34.0MQ4 FY25$3.0B$37.0MQ1 FY26$2.2B$58.0MQ2 FY26$2.5B$85.0MQ3 FY26
Latest (Q3 FY26): Operating cash flow $2.5B, Capital spending $85.0M.

Capital allocation, year by year

Adobe: where the cash came from (up) and went (down), by fiscal yearAdobe: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedCapital spendingAcquisitionsBuybacksFY21: Operating cash flow $7.2BFY21: Shares issued $291MFY21: Capital spending −$348MFY21: Acquisitions −$2.7BFY21: Buybacks −$4.0B$7.5BFY21FY22: Operating cash flow $7.8BFY22: Shares issued $278MFY22: Capital spending −$442MFY22: Acquisitions −$126MFY22: Buybacks −$6.5B$8.1BFY22FY23: Operating cash flow $7.3BFY23: Net borrowing −$500MFY23: Shares issued $314MFY23: Capital spending −$360MFY23: Buybacks −$4.4B$7.6BFY23FY24: Operating cash flow $8.1BFY24: Net borrowing $2.0BFY24: Shares issued $361MFY24: Capital spending −$183MFY24: Buybacks −$9.5B$10.4BFY24FY25: Operating cash flow $10.0BFY25: Net borrowing $497MFY25: Shares issued $348MFY25: Capital spending −$179MFY25: Acquisitions −$17.0MFY25: Buybacks −$11.3B$10.9BFY25
Over these 5 years operating cash flow totalled $40.5B; the largest uses were buybacks ($35.7B) and acquisitions ($2.8B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$5.6B
Debt$4.8B
Net cash$873M
Due within a year$850M

Adobe funds itself: free cash flow was $10.6B over the last twelve months, and $5.6B of cash and investments stands against $4.8B of debt ($850M due within a year, 6.6× covered by cash).

Where the cash came from and went

Adobe: sources (+) and uses (−) of cash, Q3 FY26Adobe: sources (+) and uses (−) of cash, Q3 FY26Operating cash flow$2.5BBuybacks−$2.2BOther investing−$583MCash drawn (+) / kept (−)$560MNet borrowing (+) / repaid (−)−$250MShares issued$178MTaxes on employees’ shares−$92.0MCapital spending−$85.0MOther financing−$19.0M
Adobe: sources (+) and uses (−) of cash, TTM to Q3 FY26Adobe: sources (+) and uses (−) of cash, TTM to Q3 FY26Operating cash flow$10.8BBuybacks−$9.3BAcquisitions−$1.6BCash drawn (+) / kept (−)$623MTaxes on employees’ shares−$400MOther investing−$280MShares issued$262MNet borrowing (+) / repaid (−)$243MCapital spending−$214MOther financing−$179MExchange rates−$6.0M

From profit to cash

Adobe: net income to operating cash flow, Q3 FY26Adobe: net income to operating cash flow, Q3 FY26Net income$1.8BDepreciation & amortization$215MStock-based pay$539MDeferred taxes$53.0MGains on investments−$21.0MOther non-cash$18.0MReceivables−$90.0MPayables$52.0MAccrued liabilities$19.0MDeferred revenue−$46.0MPrepaid and other assets−$120MIncome taxes payable$56.0MOperating cash flow$2.5B
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q3 FY2627—61-34
Q2 FY2628—58-30
Q1 FY2632—57-26
Q4 FY2533—53-20
Q3 FY2529—49-20
Q2 FY2529—49-20
Q1 FY2532—50-18
Q4 FY2431—50-19

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 FY26$2.5B−$85.0M—−$2.2B−$250M$178M$560M$2.4B
Q2 FY26$2.2B−$58.0M—−$2.1B$493M—$1.4B$2.1B
Q1 FY26$3.0B−$37.0M—−$2.5B—$84.0M−$901M$2.9B
Q4 FY25$3.2B−$34.0M—−$2.5B——−$449M$3.1B
Q3 FY25$2.2B−$72.0M−$17.0M−$2.1B—$252M−$51.0M$2.1B
Q2 FY25$2.2B−$47.0M—−$3.5B——$1.8B$2.1B
Q1 FY25$2.5B−$26.0M—−$3.2B$497M$96.0M$855M$2.5B
Q4 FY24$2.9B−$48.0M—−$2.5B——−$420M$2.9B

Adobe: income statement and cash flow

Adobe, Q3 FY26: revenue $6.8B (+13% year over year), operating margin 34.8%. The chart follows the revenue to costs, profit and cash.

Adobe: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.