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SEGMENT INFORMATION
6 Months Ended
May 29, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.
In the first quarter of fiscal 2026, we combined our former segments—Digital Media, Digital Experience and Publishing and Advertising—into a single operating and reportable segment due to changes in how management evaluates results and allocates resources, reflecting the Company’s shift to unified selling motions and integrated product innovation. Prior period information in the table below has been recast to reflect this change. Our Chief Executive Officer, the Company’s chief operating decision maker, reviews consolidated results, including net income, to assess segment performance and allocate resources. This information is primarily reviewed by comparing actual results to prior period results and to quarterly and annual forecasts. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.
Information about our single reportable segment revenue, net income and significant segment expenses for the three and six months ended May 29, 2026 and May 30, 2025 were as follows:
 Three Months EndedSix Months Ended
(dollars in millions)
2026202520262025
Revenue
$6,618 $5,873 $13,016 $11,587 
Less:
Cost of revenue(1)
669 565 1,299 1,115 
Research and development expenses(1)
911 834 1,745 1,616 
Sales and marketing expenses(1)
1,729 1,485 3,295 2,845 
General and administrative expenses(1)
364 315 697 622 
Stock-based and deferred compensation expense556 482 1,070 951 
Impairment of goodwill70 — 70 — 
Amortization of purchased intangibles
46 83 85 166 
Loss contingency
30 — 92 — 
Acquisition-related expenses— — 
Non-operating (income) expense, net(2)
— (4)(11)
Income before income taxes2,238 2,101 4,660 4,283 
Provision for income taxes526 410 1,059 781 
Net income$1,712 $1,691 $3,601 $3,502 
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(1)Excludes stock-based and deferred compensation expenses, impairment of goodwill, amortization of purchased intangibles, and certain loss contingencies and acquisition-related expenses, which are presented separately within this table.
(2)Includes interest income of $56 million for both the three months ended May 29, 2026 and the three months ended May 30, 2025, and $119 million and $136 million for the six months ended May 29, 2026 and May 30, 2025, respectively.
Further components of the Company’s measures of segment profitability and segment assets are included throughout the Company’s financial statements.