Adobe Q3 2026: AI revenue surge and a CEO change signal a new era
As seen on the 24/7 Wall St. homepage on September 10, 2026.
AI-first annualized recurring revenue grew more than 150% year over year, and Adobe raised its full-year revenue and non-GAAP EPS targets on the back of it. That is the answer bears wanted on AI monetization, arriving the same quarter Adobe named Anil as Shantanu Narayen's successor.
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Adobe posted adjusted earnings of $6.13 per share on revenue of $6.76 billion in Q3 FY2026, beating expectations on both lines and extending its consensus EPS beat streak to five consecutive quarters.
AI-first annualized recurring revenue expanded more than 150% year over year, directly answering persistent skepticism about whether Adobe could turn its generative AI integration into subscription dollars.
Confidence in that trajectory was underscored by raised full-year guidance, with Adobe lifting its FY2026 revenue target to a range of $26.58 billion to $26.63 billion. The AI-driven momentum is expected to carry into the final quarter.
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The quarter also marked a leadership inflection point. Outgoing CEO Shantanu Narayen noted that Adobe has reached more than one billion monthly active users across its creativity and productivity solutions, and he expressed confidence that his successor Anil will build on that base in the AI era.
Adobe repurchased approximately 9.5 million shares during the quarter, a signal that management views the current valuation as an opportunity.
Mentioned: ADBE