Adobe (ADBE) Risk Factor Changes

•other events, such as significant litigation, regulatory investigations or actions, and negative media or social media coverage.

•adverse economic, political or market conditions; and

•variations in our or our competitors’ financial and business performance, changes in the competitive landscape generally and developments in our industry;

•changes in annualized recurring revenue, unearned revenue, remaining performance obligations and revenue recognized at a point in time, all of which may impact actual or implied growth rates;

Our stock price has been volatile and your investment could lose value.

Our business relies on our network infrastructure and enterprise apps, internal technology systems and websites.

As of November 28, 2025, we had $6.15 billion in senior unsecured notes outstanding and a $3 billion commercial paper program with no amounts outstanding.

Our financial results and performance metrics are subject to fluctuations in foreign currency exchange rates due to the global scope of our business.

We provide solutions, directly and indirectly, to a variety of domestic and foreign government entities, which introduces certain risks and challenges not present in private commercial agreements, including varying go…

The laws, regulations and codes above may impact our innovation and business drivers in developing new and emerging technologies (for example, AI and machine learning) and may impact demand for our solutions and has r…

We are subject to global data protection, privacy and security laws, regulations and codes of conduct that relate to our various business units and data processing activities, which may include sensitive, confidential…

Disputes and litigation can be complex and are typically costly and can be disruptive to our business operations by diverting the attention of management and key personnel.

We are, and may in the future become, subject to litigation, regulatory inquiries, investigations and other actions, which could result in an unfavorable outcome and have an adverse effect on our business, financial c…

As we continue to target enterprise customers for certain of our solutions, we may face increased costs, longer sales cycles, greater competition and less predictability in completing our sales.

Some of our enterprise solutions have extended and complex sales cycles, which may increase our costs and make our sales cycles unpredictable.

As of November 28, 2025, our investment portfolio consisted of money market funds, corporate debt securities, U.S.

Additionally, third parties we do business with and our customers have international operations and are also subject to the above risks.

•changes in laws governing the flow of data across borders including into the United States;

•changes in, or impositions of, legislative or regulatory requirements in the United States and other countries, including antitrust and competition regulations, consumer protection laws, or other government actions;

•international and regional economic, political and labor conditions, including any instability or security concerns abroad, such as uncertainty caused by economic sanctions, downturns and recessions, trade disputes,…

We also rely on third-party service providers and technologies to deliver our solutions and business operations and to operate critical business systems, such as cloud-based infrastructure, data center facilities, gen…

If an agreement with one of our distributors or partners was terminated, any prolonged delay in securing a replacement distributor or partner could have a negative impact on our results of operations.

We rely on our direct sales channel and a number of third-party distributors and sales partners to distribute our solutions.

If we are unable to develop, manage and maintain our sales channels, including our direct sales force, third-party distributors, and sales partners, or third-party relationships upon which we rely for critical busines…

Maintaining the security of our solutions is a critical issue for us and our customers.

Cybersecurity incidents can be caused by human error from our workforce or that of our third-party service providers, by malicious third parties, acting alone or in groups, or by more sophisticated organizations, incl…

Our solutions collect, store, manage and otherwise process third-party data, including our customers’ data and our own data.

It is also possible that hardware or software failures or errors in our systems (or those of our third-party service providers) could result in data loss or corruption, cause the information that we collect or maintai…

Much of our business, including our online store at adobe.com, our cloud solutions and various business processes such as our enterprise resource planning system and customer and sales support, relies on hardware and…

Service interruptions or failures of our information technology systems or those of third parties may impair the availability of our solutions, which may expose us to liability, damage our reputation and harm our futu…

Much of our future success depends on the continued service, availability and performance of our senior management and highly skilled personnel across all levels of our organization.

•incurrence of additional debt to finance a transaction, which will increase our interest expense and leverage, and/or issuance of equity securities to finance transactions, which will dilute current shareholders’ per…

•exposure to litigation or other claims in connection with, or inheritance of claims or litigation risk as a result of, a transaction;

•potential identified or unknown security vulnerabilities in acquired or integrated entities’ systems, technologies, or products that expose us to additional security risks or delay our ability to integrate the acquir…

•difficulty in maintaining controls, procedures and policies during the transition and integration of an acquired business and inability to conclude that our internal controls over financial reporting are effective;

•delay in customer and distributor purchasing decisions due to uncertainty about the direction of our solutions;

•difficulty in effectively integrating operations, technologies, products, services, solutions, culture or personnel;

We have acquired and may continue to acquire businesses, products, talent and technologies as part of our business strategy.

We may not realize the anticipated benefits of acquisitions, investments or other strategic transactions, and they may disrupt our business and adversely affect our business and financial results.

We believe our reputation and brands have been, and we expect them to continue to be, important to our business and financial results.

Uncertainty around new and evolving AI uses may require significant, additional investment to develop models and proprietary datasets, responsible-use frameworks and new approaches and processes to attribute or compen…

Jurisdictions around the world are developing and passing new regulations that apply specifically to the use of AI.

Issues relating to the development and use of AI in our solutions may result in reputational harm, liability and adverse business and financial results.

The markets for our solutions are rapidly evolving and intensely competitive.

We participate in rapidly evolving and intensely competitive markets, and, if we do not compete effectively, our business and financial results could materially suffer.

We operate in rapidly evolving industries and expect the pace of innovation to continue to accelerate.

We may be unsuccessful at innovating in response to rapid technological or industry changes to meet customer needs, which could cause our business and financial results to suffer materially.

The occurrence of an epidemic or a pandemic, such as the COVID-19 pandemic, has had, and may in the future, have an adverse effect on our operating results.

Laws, regulations and policies relating to environmental, social, and governance are expanding globally.

to material cybersecurity incidents and the reasonably likely impact of such an incident on Form 8-K.

indemnification commitments with our customers, including contractual provisions under various license arrangements and service agreements.

As we continue to target enterprise customers for certain of our offerings, including Adobe Experience Cloud in our Digital Experience business and our Enterprise Term License Agreements in our Digital Media business,…

•tax laws (including U.S.

We rely on third-party service providers and technologies to deliver our products, services and business operations and to operate critical business systems, such as cloud-based infrastructure, data center facilities,…

violate our terms of service.

•inability to achieve the financial and strategic goals of the investment or acquisition;

Uncertainty around new and evolving AI uses may require significant, additional investment to develop models and proprietary datasets, responsible-use frameworks and new approaches and processes to attribute or compen…

•changes to our key performance metrics;

continue to make, significant investments to support future sales opportunities in various government sectors, including to obtain various security authorizations and certifications.

Additionally, the General Data Protection Regulation in the European Economic Area and the United Kingdom continues to be interpreted by European and UK courts in novel ways leading to shifting requirements, country-s…

We may be subject to certain aspects of the EU’s Digital Services Act, which imposes additional legal requirements on certain types of digital service providers, including online platforms and content sharing sites.

•tax laws in the United States as well as other countries and jurisdictions;

systems.

Our solutions are incorporated into the supply chain of a large number of companies worldwide and, as a result, if our solutions experience a compromise, a large portion or, in some instances, all of our customers and…

to regulatory and customer notification requirements, violations of service level agreement commitments or financial liabilities and result in customer dissatisfaction or harm our business.

We have experienced, and may continue to experience, higher compensation costs to retain and recruit senior management or highly skilled personnel that may not be offset by innovation, improved productivity or increas…

•brand or reputational harm associated with our acquisitions, investments or other strategic transactions; and

•in the case of foreign transactions, the impact of particular economic, tax, currency, political, legal and regulatory risks associated with specific countries;

•inability to achieve the expected financial and strategic benefits on a timely basis or at all;

harmful content, misinformation and disinformation, harmful bias, misappropriation, data privacy, derivative uses of third-party AI and personal injury torts.