Adobe Shares Slip as Fourth-Quarter Revenue Outlook Misses Consensus

Key Facts

Adobe shares fell 2.7% in Friday premarket trading after the company forecast fourth-quarter revenue of $6.80 billion to $6.85 billion. The $6.825 billion midpoint was below the $6.85 billion analyst consensus, even as third-quarter results beat expectations.

Adobe posted record quarterly revenue of $6.76 billion, up 13% year over year, and adjusted earnings of $6.13 a share. Both exceeded analyst estimates of $6.69 billion in revenue and $6.07 in adjusted earnings per share.

Customer Group subscription revenue reached $6.56 billion, up 14%. Business Professionals & Consumers subscription revenue rose 16% to $1.91 billion, while Creative & Marketing Professionals subscription revenue increased 13% to $4.65 billion.

Adobe said AI-first ARR grew more than 150% year over year, while total ARR at quarter-end reached $27.50 billion. ARR annualizes recurring revenue, making it an indicator of the recurring subscription base rather than revenue recognized during the quarter itself.

The company raised its fiscal 2026 outlook to revenue of $26.576 billion to $26.626 billion and adjusted earnings of $24.45 to $24.50 a share. It also projected fourth-quarter adjusted earnings of $6.30 to $6.35 a share, suggesting that the initial disappointment centered more on quarterly revenue guidance than the profit outlook.

Investors will watch whether Adobe delivers within its fourth-quarter revenue range, sustains subscription growth and converts use of its AI products into additional ARR. Those measures offer a clearer basis for judging whether the soft outlook is confined to one quarter or signals broader pressure on growth.