Adobe Posts USD 6.76 Billion in Fiscal Q3 2026 Revenue, Up 13%

Adobe reported fiscal third-quarter 2026 results after the US market close on September 10. The company also said monthly active users of its creative and productivity solutions surpassed 1 billion, the first time it has reached that scale.

By revenue mix, subscriptions remained the core. Fiscal third-quarter subscription revenue was USD 6.582 billion, compared with USD 5.791 billion a year earlier, up about 14%. Product revenue was USD 67 million, essentially flat, while services and other revenue was USD 111 million, down from USD 129 million in the same period of 2025. Subscription revenue accounted for more than 97% of total revenue. The company disclosed that total annual recurring revenue (ARR) reached USD 27.5 billion at the end of the fiscal third quarter. By customer group, subscription revenue from business and individual users was USD 1.91 billion, up 16%, and subscription revenue from creative and marketing professionals was USD 4.65 billion, up 13%. Total subscription revenue by customer group was USD 6.56 billion, up 14%.

On AI, Adobe disclosed that its "AI-first" annual recurring revenue grew more than 150% year over year. The company did not disclose the specific amount of that metric. Adobe's AI efforts center on the Firefly generative AI model, Creative Cloud, Document Cloud and Experience Cloud. Chief Executive Officer Shantanu Narayen said the fiscal third-quarter results reflected Adobe's strengths in AI innovation, expanded customer reach and leadership across creativity, productivity and customer experience, and that surpassing 1 billion monthly active users was a key milestone for the company.

On profit, Adobe's fiscal third-quarter GAAP net income was USD 1.827 billion, compared with USD 1.772 billion a year earlier, up about 3%. Non-GAAP net income was USD 2.424 billion, compared with USD 2.252 billion a year earlier, up about 8%. GAAP diluted earnings per share were USD 4.62, compared with USD 4.18 a year earlier. Non-GAAP diluted earnings per share were USD 6.13, compared with USD 5.31 a year earlier, up about 15%. GAAP operating income was USD 2.354 billion, compared with USD 2.173 billion a year earlier. Non-GAAP operating income was USD 2.974 billion, compared with USD 2.773 billion a year earlier. The GAAP operating margin was about 34.8%, below about 36.3% a year earlier. The non-GAAP operating margin was about 44.0%, below about 46.3% a year earlier.

On expenses, research and development costs were USD 1.288 billion, compared with USD 1.088 billion a year earlier. Sales and marketing costs were USD 1.827 billion, compared with USD 1.639 billion a year earlier. General and administrative costs were USD 488 million, compared with USD 408 million a year earlier.

On cash flow, Adobe's fiscal third-quarter operating cash flow was USD 2.523 billion, a fiscal third-quarter record, compared with USD 2.198 billion a year earlier. The company repurchased about 9.5 million shares in the fiscal third quarter, using USD 2.232 billion in cash for common stock repurchases. Diluted shares fell to 395 million from 424 million a year earlier. At the end of the fiscal third quarter, the company had USD 4.359 billion in cash and cash equivalents and USD 1.280 billion in short-term investments, totaling about USD 5.639 billion. Current debt was USD 1.597 billion and long-term debt was USD 4.766 billion, totaling about USD 6.363 billion. On deferred revenue, deferred revenue at period end was USD 7.204 billion, of which current deferred revenue was USD 7.094 billion. Remaining performance obligations were USD 22.16 billion, of which current remaining performance obligations accounted for 67%.

On guidance, Adobe raised its full-year fiscal 2026 revenue target to USD 26.576 billion to USD 26.626 billion, from previous guidance of USD 26.5 billion to USD 26.6 billion. It raised its full-year non-GAAP adjusted earnings per share guidance to USD 24.45 to USD 24.50, from USD 24.35 to USD 24.45. The full-year total ARR growth target is 10.2% year over year. The company's revenue guidance for the fiscal fourth quarter is USD 6.8 billion to USD 6.85 billion, with a midpoint of USD 6.825 billion. Fiscal fourth-quarter non-GAAP adjusted earnings per share guidance is USD 6.30 to USD 6.35. The fiscal fourth-quarter guidance assumes the current macroeconomic environment remains unchanged and a non-GAAP operating margin of about 44%.