Adobe Posts Record $6.76 Billion Quarterly Revenue
Updated September 12, 2026 with notes from the earnings call.
The software company lifted full-year fiscal 2026 revenue targets to $26.576 billion to $26.626 billion after a third-quarter beat.
Adobe (ADBE) reported record third-quarter fiscal 2026 revenue of $6.76 billion, 13% above a year earlier and 12% in constant currency, matching the year-over-year growth rate it posted in the second quarter.
The result exceeded the company’s own third-quarter target of $6.57 billion to $6.62 billion and followed sequential revenue of $6.62 billion in the prior quarter. Diluted earnings were $4.62 a share on a GAAP basis and $6.13 a share on a non-GAAP basis, versus $4.25 GAAP and $5.96 non-GAAP in the second quarter. GAAP results no longer included the $0.17 a share non-cash goodwill impairment charge related to the Publishing & Advertising reporting unit that had been in the prior quarter.
Chair and CEO Shantanu Narayen said the quarter reflected the strength of AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience. Interim CFO Steve Day said Adobe delivered double-digit revenue and EPS growth and is raising full-year revenue and EPS targets.
Monthly active users across creativity and productivity solutions reached a milestone of more than 1 billion. Adobe AI-first ARR grew more than 150% year over year, after tripling year over year and exceeding $500 million in the second quarter. Total Adobe ARR exiting the quarter was $27.50 billion, up from $27.10 billion at the end of the prior quarter and $26.06 billion two quarters earlier.
Customer Group subscription revenue was $6.56 billion, up 14% year over year, or 13% in constant currency, matching the 14% year-over-year rate in the second quarter. Business Professionals & Consumers subscription revenue was $1.91 billion, up 16% year over year, or 15% in constant currency, also matching the prior quarter’s 16% rate. Creative & Marketing Professionals subscription revenue was $4.65 billion, up 13% year over year, or 12% in constant currency, matching the prior quarter’s 13% rate.
GAAP operating income was $2.35 billion and non-GAAP operating income was $2.97 billion. GAAP net income was $1.83 billion and non-GAAP net income was $2.42 billion. Cash flows from operations were a record $2.52 billion, versus $2.17 billion in the second quarter and a record $2.96 billion two quarters earlier. Remaining Performance Obligations were $22.16 billion exiting the quarter, with Current RPO at 67%, versus $22.27 billion RPO and 67% cRPO in the prior quarter. Adobe repurchased approximately 9.5 million shares during the quarter.
Day said the company is expanding its user base through a freemium strategy and deepening engagement with agentic experiences to deliver long-term, durable growth. Narayen said he has confidence that successor Anil will build on the momentum of the 1-billion-user milestone to drive Adobe’s next chapter of growth and innovation in the AI era.
Fourth-quarter fiscal 2026 targets are total revenue of $6.80 billion to $6.85 billion, GAAP EPS of $4.65 to $4.70 and non-GAAP EPS of $6.30 to $6.35, assuming a non-GAAP operating margin of about 44.0%. Updated fiscal 2026 targets were raised to total revenue of $26.576 billion to $26.626 billion, GAAP EPS of $18.12 to $18.17 and non-GAAP EPS of $24.45 to $24.50, versus the prior updated range of $26.50 billion to $26.60 billion revenue, $17.90 to $18.00 GAAP EPS and $24.35 to $24.45 non-GAAP EPS. Those annual targets assume total Adobe ending ARR growth of 10.2% year over year and a non-GAAP operating margin of about 45.0%.
Update from the earnings call — 2026-09-10
- Adobe's AI-first ending ARR exceeded $650 million in the third quarter, while creative freemium monthly active users surpassed 100 million and grew more than 70% year over year. - Adobe said it has fully used its March 2024 share-repurchase authorization and has approximately $24.55 billion remaining under the April 2026 authorization. - Adobe's fourth-quarter targets include Business Professionals and Consumers subscription revenue of $1.93 billion to $1.95 billion and Creative and Marketing Professionals subscription revenue of $4.665 billion to $4.695 billion.