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Risks

• The effects of the COVID-19 pandemic have materially affected how we and our customers are operating our businesses, and the duration and extent to which this will impact our future results of operations and overall financial performance remains uncertain.
• Our competitive position and results of operations could be harmed if we do not compete effectively.
• If we cannot continue to develop, acquire, market and offer new products and services or enhancements to existing products and services that meet customer requirements, our operating results could suffer.
• Introduction of new technology could harm our business and results of operations.
• We may not realize the anticipated benefits of past or future investments or acquisitions, and integration of acquisitions may disrupt our business and management.
• The success of some of our product and service offerings depends on our ability to continue to attract and retain customers of and contributors to our online marketplaces for creative content.
• If our products or platforms are used to create or disseminate objectionable content, particularly misleading content intended to manipulate public opinion, our brand reputation may be damaged, and our business and financial results may be harmed.
• Social and ethical issues relating to the use of AI in our offerings may result in reputational harm and liability.
• Security breaches in data centers we manage, or third parties manage on our behalf, may compromise the confidentiality, integrity, or availability of employee and customer data, which could expose us to liability and adversely affect our reputation and business.
• We rely on data centers managed both by Adobe and third parties to host and deliver our services, as well as access, collect, process, use, transmit and store data, and any interruptions or delays in these hosted services, or failures in data collection or transmission could expose us to liability and harm our business and reputation.
• Security vulnerabilities in our products and systems, or in our supply chain, could lead to reduced revenue or to liability claims.
• Some of our enterprise offerings have extended and complex sales cycles, which can make our sales cycles unpredictable.
• If our customers fail to renew subscriptions in accordance with our expectations, our future revenue and operating results could suffer.
• We face various risks associated with our operating as a multinational corporation.
• Our business could be harmed if we fail to effectively manage critical strategic third-party business relationships.
• Failure of our third-party customer service and technical support providers to adequately address customers’ requests could harm our business and adversely affect our financial results.
• If we are unable to recruit and retain key personnel, our business may be harmed.
• Failure to manage our sales, partner and distribution channels effectively could result in a loss of revenue and harm to our business.
• Catastrophic events may disrupt our business.
• Climate change may have a long-term impact on our business.
• We are subject to risks associated with compliance with laws and regulations globally, which may harm our business.
• Increasing regulatory focus on privacy and security issues and expanding laws could impact our business models and expose us to increased liability.
• Our intellectual property portfolio is a valuable asset and we may not be able to protect our intellectual property rights, including our source code, from infringement or unauthorized copying, use or disclosure.
• We may incur substantial costs defending against third parties alleging that we infringe their proprietary rights.
• Changes in accounting principles, or interpretations thereof, could have a significant impact on our financial position and results of operations.
• Changes in tax rules and regulations, or interpretations thereof, may adversely affect our effective tax rates.
• Contracting with government entities exposes us to additional risks inherent in the government procurement process.
• Uncertainty about current and future economic conditions and other adverse changes in general political conditions in any of the major countries in which we do business could adversely affect our operating results.
• Subscription offerings could create risks related to the timing of revenue recognition.
• We may incur losses associated with currency fluctuations and may not be able to effectively hedge our exposure.
• Revenue, margin or earnings shortfalls or the volatility of the market generally may cause the market price of our stock to decline.
• If our goodwill or amortizable intangible assets become impaired, then we could be required to record a significant charge to earnings.
• We have issued $4.15 billion of notes in debt offerings and may incur other debt in the future, which may adversely affect our financial condition and future financial results.
• Our investment portfolio may become impaired by deterioration of the financial markets.