Operator

Good day, and welcome to Q2 FY 2026 Adobe Earnings Conference Call. Today’s conference is being recorded.

At this time, I’d like to turn the conference over to Doug Clark, Vice President of Investor Relations. Please go ahead.

Douglas Clark
Vice President of Investor Relations

Good afternoon, and thank you for joining us. With me on the call today are Shantanu Narayen, Adobe’s Chair and CEO; David Wadhwani, President of Creativity and Productivity; Anil Chakravarthy, President of Customer Experience Orchestration; and Steve Day, Senior Vice President, Corporate Finance and CFO of Customer Experience orchestration.

On this call, which is being recorded, we will discuss Adobe’s second quarter fiscal year 2026 financial results. You can find our press release, as well as PDFs of our prepared remarks and financial results on Adobe’s Investor Relations website.

The information discussed on this call, including our financial targets and product plans, is as of today, June 11, and contains forward-looking statements that involve risks, uncertainty and assumptions. Actual results may differ materially from those set forth in these statements. For more information on those risks, please review today’s earnings release and Adobe’s SEC filings.

IT shares extended their losing streak to the seventh straight session Thursday, the longest since September 2025, as fresh AI-disruption jitters gripped investors amid declines in global tech stocks.

The Nifty IT index fell as much as 2.7% intraday before ending at 27,821, down 1.6% and the lowest closing level since May 15. The benchmark Nifty50 ended 0.2% lower.

“Indian IT companies were hammered due to Anthropic launching a new AI model that increased the risk to the revenue for domestic tech players,” said Kotak Securities senior vice-president Sumit Pokharna.

The newly launched model has higher capabilities than previous ones and the faster developments are increasing the pressure on application development and maintenance companies, Pokharna said.

Anthropic launched a Mythos class model, called Claude Fable 5, for general use on June 9.
Sentiment was also hurt by a 2% fall in the Nasdaq Composite Index Wednesday, as investors globally see rising risk due to concentration in some front-end AI stocks and are looking to diversify and rotate into other AI-enabler stocks.“The IT sector is in uncharted territory, given the prolonged revenue weakness during a generational technology shift driven by AI,” said Kumar Rakesh, an IT analyst at BNP Paribas. “This makes it difficult to predict whether the worst is over.”

All constituents of the IT index declined on Thursday. LTM dropped 2.6% while Infosys fell 2.3%. Oracle Financial Services Software and HCL Technologies slipped over 1.5% each.

A cyclical recovery, possibly in September, could be the first sign of revival despite ongoing structural challenges; however, this recovery could be delayed depending on geopolitical tensions, said Kumar.

“Investors should avoid companies that are struggling to transition and instead be extremely selective,” he said. “Persistent Systems among midcaps, and Infosys and Tech Mahindra among large caps, are the preferred picks in the sector.”

So far this year, the Nifty IT index has slumped 26.6%. The benchmark Nifty50 is down 11.4%.

Despite improved valuations, the sector has not bottomed out as headwinds like AI disruption, likely rate hikes in the US and geopolitical turbulence continue to weigh on the sector. The outlook is cautious and selective, said analysts. “Pain periods do turn valuations attractive and staggered accumulation of Infosys, TCS, Tech Mahindra along with Coforge can be considered for a two- to three-year horizon,” said Pokharna.

Few IPOs in recent years have been as avidly anticipated and sparked as much debate as rocket and artificial intelligence (AI) company SpaceX’s blockbuster issue. As the Elon Musk-founded company gears up for listing on Friday after attracting record investor bids for its roughly $75 billion IPO, the largest ever, the discussion extends beyond the stock’s debut.

Investors are asking whether it will validate the torrent of money that has flowed into AI-linked companies and prolong Wall Street’s dream bull run or serve as a signal that market optimism has reached its peak. Saudi Aramco’s $29.4 billion issue in 2019 was the largest IPO before this.

Stress Test
The 555.6-million-share IPO of SpaceX was subscribed more than four times on Wednesday night. The bids underscore investor appetite for the hottest investment theme currently, AI, allowing SpaceX to target an eye-popping $1.75 trillion valuation on debut, turning it instantly into one of the world’s most valuable companies.The valuation target, along with the company’s losses and questions over corporate governance, has led to heightened scepticism about the stock’s prospects, with veteran short seller Jim Chanos warning the offering does not justify the astronomical valuation.

SpaceX posted revenue of $18.67 billion in 2025, up 33% from the previous year, along with a net loss of $4.94 billion.
To be sure, it’s also some kind of a referendum on Musk.
To his dedicated fanbase, Musk can do no wrong. Naysayers warn investors against getting swept up in the general euphoria of a listing pop lest they be left holding the pieces down the line.
Beyond the scale, SpaceX’s listing has greater significance for global markets riding the AI wave. It’s a stress test of market appetite for the high-growth, capital-intensive AI theme as equity supply risks are set to rise. It will also signal how much tolerance investors have for losses posted by some stars of the AI firmament.

“There is also a psychological element to the supply-demand picture with SpaceX,” BNP Paribas Securities analysts wrote in a recent client note. “Many investors will likely anticipate that the deal size is only the tip of a supply iceberg.”

OpenAI and rival Anthropic recently made confidential filings for mega IPOs, seeking to capitalise on the voracious investor demand for AI-linked shares. Both these companies may be targeting trillion-dollar valuations.

“Follow-on issuance and stock lock-ups expiring plus possible IPOs for OpenAI and Anthropic collectively amount to much more equity supply,” said the BNP note.

For seasoned investors, a likely glut of AI-linked IPOs and share sales evokes memories of the dotcom boom. At that time, investors snapped up shares at astounding prices, ignoring losses and the absence of viable business models.

As comparisons with previous market bubbles resurface, so too has the familiar refrain that “this time is different” with proponents arguing that the scale of investment flowing into AI and its growing commercial adoption set the current boom apart from past ones.

Ford is ​recalling more than 548,000 vehicles over a center console defect that could cause injury to the occupants, according to the ​U.S. National Highway Traffic ​Safety Administration.

The recall affects certain 2018-2024 Ford Expedition vehicles, the federal regulator said Thursday. A total of 548,463 vehicles are affected by the recall.

The center console’s ​chrome plating may bubble ​and peel over time, potentially leading to sharp edges, the regulator said. Passengers who come ​into contact with the sharp ​edges face an increased risk of injury.

KIA RECALLS 6K VEHICLES DUE TO POSSIBLE SEAT BELT DEFECT THAT COULD RAISE INJURY RISK

“A customer may come in contact with the sharp edge of peeling chrome while driving, increasing the risk of injury,” the NHTSA report reads.

The NHTSA said the defect may have been caused by the center ​console chrome ​trim that ⁠was manufactured by a supplier using parameters that failed to meet ​Ford’s specifications.

The manufacturers listed in the regulator’s report are automotive parts suppliers Xin Point and Forvia.

According to the recall report, Ford identified a trend in the NHTSA’s Vehicle Owner Questionnaires (VOQs) in September about the bubbling and peeling of chrome trim on the center console of 2019-2020 model-year Ford Expedition vehicles.

Ticker	Security	Last	Change	Change %
F	FORD MOTOR CO.	14.71	+0.41	+2.87%

“Five of the six reported VOQs allege customer hand injuries from contact with the sharp edge of the peeling chrome trim,” the report reads.

Ford said it is aware of one accident and 65 injuries in connection with this issue.

MORE THAN 1 MILLION JEEP VEHICLES RECALLED OVER FIRE RISK AS OWNERS WARNED NOT TO PARK INSIDE

“Customer reports of hand and finger lacerations associated with this condition include a small number of instances stating that professional medical attention was required,” the report says.

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Customers affected by the recall will be able to go to a Ford dealer to have their vehicles inspected, and center consoles replaced as ⁠necessary, at no cost.

Notification letters about the safety risk are expected to be mailed out on June 29. 

Additional letters will be sent in January of next year “once the remedy is available,” according to the NHTSA.

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NEW YORK — The New York Knicks staged one of the most remarkable comebacks in NBA Finals history, erasing a 29-point deficit to defeat the San Antonio Spurs 107-106 on Wednesday night and take a commanding 3-1 series lead.

OG Anunoby tipped in a miss by Jalen Brunson with 1.2 seconds remaining, completing the historic rally at a raucous Madison Square Garden. The victory puts the Knicks on the brink of their first championship since 1973, with three chances to close out the series starting with Game 5 on Saturday in San Antonio.

It was the largest comeback in Finals history, surpassing the previous mark of 24 points set by Boston against the Lakers in 2008. The Spurs had led 81-52 in the third quarter and held a 27-point advantage at halftime, appearing headed for a commanding road win.

Dramatic Rally Unfolds

The Knicks limited San Antonio to just 14 points on 4-for-20 shooting in the third quarter, using a 13-0 run to claw back into contention. They entered the fourth quarter trailing 90-75 but outscored the Spurs 32-16 in the final period to pull off the improbable victory.

Brunson led the Knicks with 36 points, delivering clutch scoring throughout the comeback. Anunoby finished with 33 points and made the game-winning play, swooping in as Brunson’s long three-point attempt bounced off the front rim.

“I told OG as big, as strong, as athletic as he is, he’s got to be a monster on the offensive glass tonight,” Knicks coach Mike Brown said. “I don’t know if there was a play bigger than any other play in the history of Knicks basketball.”

Delirious fans inside Madison Square Garden erupted as the final seconds ticked away, singing along to Journey’s “Don’t Stop Believin’” after witnessing a moment that seemed almost impossible earlier in the evening.

Spurs Collapse After Strong Start

The young Spurs built their massive lead with hot three-point shooting, making 11 of their first 16 attempts. However, they went cold in the second half, shooting just 3 for 17 from beyond the arc as the Knicks mounted their charge.

Victor Wembanyama recorded 24 points and 13 rebounds but shot 9-for-25 from the field. The 7-foot-4 phenom struggled to impose his will consistently against New York’s physical defense in the second half.

“We got on our heels — we missed some shots,” Spurs coach Mitch Johnson said. “It’s disappointing, to say the least.”

Dylan Harper scored 21 points for San Antonio, while De’Aaron Fox and Devin Vassell each added 18. The Spurs, who had won Game 3 in New York to avoid falling into a 3-0 hole, now face elimination pressure on their home court.

“I think it began before (the fourth quarter),” Wembanyama said of the collapse. “I can’t really explain it right now. I don’t know. … We clearly weren’t the most hungry in the second half.”

Historic Context and Series Implications

The Knicks had their 13-game winning streak snapped in Game 3 but responded with resilience that has defined their playoff run. This marks only the second time in Finals history that road teams won the first three games, and the Spurs were well-positioned to make it four before the dramatic reversal.

No team had come from more than 24 points down in a Finals game since detailed play-by-play tracking began in 1997. The Knicks’ effort now stands as the largest comeback in Finals annals and the second-largest in any playoff game, behind only the LA Clippers’ 31-point rally against Golden State in 2019.

The series has been intensely physical, with Wembanyama drawing flagrant fouls and heightened defensive attention. The hostile environment at Madison Square Garden played a significant role in the momentum shift, energizing the Knicks during their third-quarter surge.

Path to the Title

A Knicks victory in Game 5 on Saturday would give them their first title in more than five decades. The franchise last won in 1973 under Willis Reed. This year’s team, built around Brunson’s leadership and a balanced supporting cast, has overcome significant obstacles throughout the postseason.

The Spurs, in just their third season with Wembanyama, have exceeded expectations by reaching the Finals. A return home for Game 5 offers them a chance to extend the series and test the Knicks’ resolve in a hostile environment once more.

Coaching and Tactical Notes

Mike Brown’s adjustments in the second half, particularly emphasizing offensive rebounding and defensive intensity, proved decisive. The Knicks’ ability to limit San Antonio’s three-point shooting after halftime was a turning point.

Mitch Johnson and the Spurs staff will need to regroup quickly, addressing second-half execution and finding ways to sustain energy against a motivated Knicks squad.

Fan and Cultural Impact

The atmosphere at Madison Square Garden was electric, with fans roaring through every run. Celebrities including Taylor Swift were in attendance, adding to the spectacle of a Finals game that will be remembered for years.

The Knicks’ resilience has captivated New York and basketball fans nationwide, evoking memories of past championship teams known for toughness and never-quit attitudes.

As the series shifts back to San Antonio, the Spurs will look to leverage home-court energy while the Knicks aim to close out the championship on the road. Game 5 promises another intense battle between two resilient teams featuring generational talents in Brunson and Wembanyama.

The 2026 NBA Finals have already delivered drama and historic moments. With the Knicks one win away from ending a long title drought, the coming games will determine whether New York completes its journey or if San Antonio forces a longer, more grueling series.

The Knicks’ record comeback in Game 4 stands as a testament to their character and sets up what could be a memorable conclusion to the 2026 postseason.