Adobe Inc
Q3 2026 Earnings
Market Reaction
Did ADBE Beat Earnings? Q3 2026 Results
Adobe delivered a clean beat across the board in Q3 FY2026, extending its consensus EPS beat streak to five consecutive quarters as the creative software giant posted adjusted earnings of $6.13 per share, ahead of the $6.09 analyst estimate, on revenue of $6.76 billion that grew 12.9% year over year and edged past the $6.70 billion consensus. The key engine behind the quarter's momentum was Adobe's AI-driven subscription business, where total subscription revenue reached $6.58 billion, up 14% from a year ago, and AI-first annualized recurring revenue expanded more than 150% year over year, validating the company's aggressive push to embed generative AI across its product suite. Operating cash flows hit $2.52 billion for the quarter, while total ARR exiting the period stood at $27.50 billion. Looking ahead, Adobe raised its full-year FY2026 revenue target to a range of $26.58 billion to $26.63 billion and lifted its non-GAAP EPS guidance to $24.45 to $24.50, with Q4 revenue expected between $6.80 billion and $6.85 billion, signaling continued confidence in its freemium and agentic AI growth strategy.
- AI innovation driving customer adoption and revenue growth
- Subscription revenue grew 14% year over year to $6.58 billion
- Reached 1 billion monthly active users across creativity and productivity solutions
- Total ARR reached $27.50 billion
- Record operating cash flows of $2.52 billion
“Adobe delivered record Q3 results, reflecting the strength of our AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience.”
Adobe CEO, on the earnings call
Forward Guidance & Outlook
Adobe raised its full-year FY2026 targets: total revenue of $26.576 billion to $26.626 billion; non-GAAP EPS of $24.45 to $24.50; GAAP EPS of $18.12 to $18.17. Business Professionals & Consumers subscription revenue is targeted at $7.470 billion to $7.490 billion, and Creative & Marketing Professionals subscription revenue at $18.242 billion to $18.272 billion. Total Adobe ending ARR growth is targeted at 10.2% year over year. For Q4 FY2026, Adobe targets total revenue of $6.80 billion to $6.85 billion, Business Professionals & Consumers subscription revenue of $1.93 billion to $1.95 billion, Creative & Marketing Professionals subscription revenue of $4.665 billion to $4.695 billion, GAAP EPS of $4.65 to $4.70, and non-GAAP EPS of $6.30 to $6.35. Q4 targets assume non-GAAP operating margin of ~44.0%, GAAP tax rate of ~22.0%, non-GAAP tax rate of ~18.0%, and diluted share count of ~389 million.
ADBE YoY Financials
ADBE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.