EL7.AI
StocksMedium•25 October 2026•
4 min read

Adobe Posts Record Revenue of $6.76 Billion and Raises 2026 Targets

Key Facts

1Revenue was $6.76 billion, up 13% year over year or 12% in constant currency.
2Diluted earnings per share were $4.62 on a GAAP basis and $6.13 on a non-GAAP basis.
3Annual recurring revenue from AI-powered offerings grew more than 150% year over year.
4Adobe raised its fiscal 2026 revenue target range to $26.576–$26.626 billion.

Adobe reported its fiscal 2026 third-quarter results on September 10, for the period ended August 28, posting record revenue of $6.76 billion, up 13% year over year or 12% in constant currency. Diluted earnings per share were $4.62 on a GAAP basis and $6.13 on a non-GAAP basis, according to the company’s filing with the U.S. Securities and Exchange Commission. Revenue exceeded analysts’ average estimate of $6.70 billion, while adjusted earnings per share also topped their estimate of $6.09, according to data cited by Reuters. The company said it raised its fiscal 2026 revenue and earnings per share targets. The statement does not establish that this was the second consecutive time the company had raised its targets.

Subscriptions led revenue, with Customer Group subscription revenue reaching $6.56 billion, up 14% year over year or 13% in constant currency. Within the group, subscriptions for the Business Professionals and Consumers category generated $1.91 billion, up 16% from the same period a year earlier. Subscriptions for the Creators and Marketing Professionals category totaled $4.65 billion, up 13%. The figures show year-over-year growth in both categories, with Business Professionals and Consumers posting the faster rate of increase. Adobe’s annual recurring revenue stood at $27.50 billion at the end of the quarter, while remaining performance obligations reached $22.16 billion, of which 67% was expected to be recognized over the following twelve months.

Adobe said annual recurring revenue from its AI-powered offerings grew more than 150% year over year during the quarter. Monthly active users across its creative and productivity solutions also exceeded 1 billion. Chief Executive Shantanu Narayen described the level as “a major and important milestone for Adobe” and said the quarterly results reflected the company’s AI innovation and expanding customer base. These indicators place AI and wider usage in the context of the company’s results, alongside subscription revenue growth. The growth figure in the statement applies specifically to annual recurring revenue from AI-powered offerings, while the statement reports quarterly revenue and subscription growth separately.

On operating performance, the company posted GAAP operating income of $2.35 billion and net income of $1.83 billion. It also generated record third-quarter cash flow from operations of $2.52 billion. The company repurchased about 9.5 million shares during the quarter. These indicators accompany the increases in revenue and subscription revenue, adding details on the company’s income, cash flows and use of cash during the period. The figures cited here in the statement do not specify the effect of the share repurchases on earnings per share.

For the coming quarter, Adobe targeted revenue of $6.80 billion to $6.85 billion for the fourth quarter of fiscal 2026, and non-GAAP earnings per share of $6.30 to $6.35. The company raised its fiscal-year revenue target range to $26.576–$26.626 billion and set a range of $24.45 to $24.50 for earnings per share on the same basis. It also targets year-end annual recurring revenue growth of 10.2% year over year. The quarterly revenue guidance sets a clear range for the next quarter, while the annual targets reflect the company’s expectations for the remainder of the fiscal year. The figures follow revenue of $6.40 billion in the first quarter and $6.62 billion in the second, before the third-quarter result of $6.76 billion.

The stock’s reaction after the announcement was mixed despite results topping estimates; it fell 2.7% in premarket trading on Friday, September 11, according to Investing.com. The report linked the decline to fourth-quarter expectations, with the midpoint of Adobe’s revenue target range at $6.825 billion, compared with analysts’ consensus of $6.85 billion. The move was in premarket trading after the results announcement and should not be confused with the share price recorded later in October. Adobe shares closed at $263.82 on October 23, according to EL7 data. Before the results were released, it had been announced that Anil Chakravarthy would become president and chief executive officer effective December 1, 2026, while Shantanu Narayen would move to the role of chairman of the board.