Keith Weiss

Shantanu outlined phase-shifted monetization where MAU leads ARR. Firefly now a $250M business that did not exist a few years ago. GenStudio growing 30%, AEP and apps growing 30%. AI-first book of business tripled and expected to become next billion-dollar business.

Shantanu described Q4 as an inflection point in leading indicators. Cited $2.6 billion net new ARR guide as highest beginning-of-year target ever, MAU growth, freemium usage, Creative Cloud core subscription growing sequentially, and combined enterprise strategy as driving confidence.

Shantanu acknowledged SMBs may use proprietary channel tools but larger enterprises want cross-channel campaign creation, attribution, and analysis through GenStudio.

David explained Adobe differentiates on choice (all third-party models available) and integrations (precision workflows combining Photoshop with generative capabilities).

Shantanu wants CC Pro as sweet spot for creative pros, with Standard and Firefly single app as on-ramps. Dan said FX is small factor; vast majority of raise driven by ARR performance.

Shantanu confirmed the read, noting Creative and Marketing has large untapped TAM and new subscriptions like Firefly app will accelerate growth.

Dan Durn said they will continue to be strong capital allocators and opportunistic. Shantanu called it a vote of confidence in opportunities ahead.

Shantanu pushed back noting Adobe beat all three ARR targets set during FY2024. Explained creative growth was understated because Acrobat Pro shifted to document cloud bucket. Highlighted GenStudio as enterprise unlock.

Sasan acknowledged the issue is different from 2023-24, requiring durable model change rather than one-time offers. Explained shift from complexity-based to value-based pricing, with monetization beyond tax through Credit Karma and money offerings.

Sasan explained data stays within Intuit, no economics shared, LLM partners rely on Intuit for regulated financial expertise. Sandeep reinforced moat: proprietary data, flow of funds, human intelligence all remain untouched.

Sasan noted payroll hours worked up, industry-specific variation (IT/construction/manufacturing up, real estate/lending down). Sandeep added Intuit's must-have positioning means products become more critical in tougher economy.

Sasan noted AI agent monetization not in FY26 guidance. Millions engaging after 1 month, repeat usage above expectations. Mailchimp to exit FY26 at double-digit growth via mid-market sales and product improvements.

Sandeep clarified hiring was slightly below plan due to AI-driven productivity gains, not delays. 40% faster coding with GenAI tools.

Sasan cited expense discipline, AI efficiencies in customer success coming earlier than expected, and slower tax season start aiding Q2 margins.

Sandeep categorically denied macro weakness as a factor, attributing churn entirely to product innovation skewing toward larger customers.

Sandeep attributed churn to mid-market innovation making discovery harder for small customers. Deeply integrated Mailchimp-QBO experience expected in several quarters.

Sanjit answered directly: value compounds as data accumulates over time and across customers (maintenance, risk patterns).

Dominic answered directly: the acceleration is broad-based across emerging products, large deals and verticals, not one product.

Dominic said most net new ACV comes from expansions, and emerging products are just scratching the surface, enabling larger landings across multiple products.

Sanjit cited dedicated strategic-account sales plus implementation/change-management and API/security investments; the $1M+ customer record shows it working.

Dominic attributed elongation to direct customer conversations about prioritizing tariff-impacted vehicle and asset purchases after Liberation Day.

Dominic pointed to the record 79% but guided to limited near-term gross-margin leverage, with software-only SKUs and asset tags accretive over time.

Stand-in Chris Quintero on for Keith Weiss. Dominic credited multi-year investment, product features and referenceability for Mexico/UK strength and expects continued international investment.

Dominic said the quarter was balanced, tilted slightly toward expansion, and that reps cover both new logos and expansions in their territories.

Washington pointed to net new AOV outpacing AOV since H2 FY26, with guidance raised for the year. Milano added that top 10 deals grew TCV 2.5x year over year, Informatica bookings reaccelerated beyond expectations, and 7 of 10 top deals added new seats.

Marc acknowledged the comprehensive business dynamics but emphasized results exceeded expectations, while Robin noted seats still growing and multiple AI monetization paths.

Miguel emphasized the last mile problem requires enterprise context that only Salesforce provides, citing 400 customer meetings across 12 countries in three continents.

Srini cited forward deployed engineers, agent command center observability, and deterministic agent features, while Miguel gave Falabella and DirecTV examples.

Marc committed to margin and cash flow frameworks while outlining a growth transformation through distribution expansion, and Miguel detailed 22% capacity growth targets.

Marc gave a detailed real-world example of a $20M telecom deal split $13M human products and $7M Agentforce, showing the mixed pricing model in action.

Millham confirmed initial 200 deals are primarily Service Cloud add-ons but emphasized opportunity across Sales, Marketing, Commerce, and Data Cloud. Called it tip of the iceberg.

Amy explained the shift from pure seat-based to seat+consumption pricing model. Satya reinforced that value comes from eval and outcome, where agents create cost savings or revenue increases for customers.

Hood reframed Azure guide as allocated-capacity; said had all Q1/Q2 GPUs gone to Azure, growth would have been over 40%. GPUs are being prioritized to Copilot, GitHub, R&D, then Azure.

Nadella framed 'jagged intelligence' as the reality and said Microsoft's Copilot/Agent HQ systems are the organizing layers that smooth out model gaps; AGI per the contract is not near.

Nadella drew parallel to Amazon/Netflix on AWS; said head apps shape the platform and broad diffusion follows, and Microsoft tracks both head and tier-2 usage.

Nadella reframed as routine portfolio management; Hood added they'll remain tight on capacity through Q4 as they prioritize the right fleet shape and location.

Hood attributed shortfall to scale-motion execution issues in the partner channel and reaffirmed Q3 Azure guide of 31-32% CC; confidence on AI side unchanged.

Satya framed training capex as rate-limited by inference monetization and named power and data-center construction as the near-term external constraints.

Mike explained Teamwork Graph delivers higher quality AI at lower token cost. James detailed $50M DC pull-forward from future periods driven by EOL announcement, Q3 largest expiry base, and March pricing change. DC retention rates outperformed. Migration customers moderating DC seat expansion.

Joe explained cloud migrations drive revenue timing differences, cloud recognized ratably vs DC partially upfront, plus lower marketplace take rate on cloud apps. All other organic drivers in-line or slightly better. Mike emphasized this is positive for business citing 26% cloud growth and 42% RPO growth.

Mike dismissed AI developer displacement concerns with data. Business users in instances with connected AI tools are growing faster. Cited Rovo Dev performance on SWE-bench and internal use of 3-4 cogeneration tools with 1,000+ daily users each.

Mike outlined four pillars of differentiation: R&D speed, multi-model strategy (30+ models, 7+ vendors), data quality via Teamwork Graph, and interface/surface advantages.

Joe acknowledged macro stability as a factor but also cited good sales execution, paid seat expansion, and migrations. Mike added consolidation as a growth driver.