Overview
- Justice Department filed a proposed stipulated order that would resolve its case against Adobe and two executives, Maninder Sawhney and David Wadhwani, pending court approval.
- The proposal includes a $75 million civil penalty and $75 million in free services plus requirements to disclose Early Termination Fees and their calculation before enrollment, send reminders for trials over seven days, and simplify cancellations.
- Adobe denied wrongdoing, said it has already streamlined sign‑up and cancellation flows, and noted the agreement contains no admission of liability.
- Adobe reported fiscal Q1 revenue of $6.40 billion and adjusted EPS of $6.06, both above estimates, reiterated full‑year guidance, and said subscriptions accounted for 97% of quarterly revenue.
- CEO Shantanu Narayen will step down after a successor is named and remain board chair; shares fell more than 5% following the announcement as Citi trimmed its price target to $278.