Companies /Technology

Adobe Inc

NASDAQ: ADBE Software - Application
$289.34
â–² $15.87 (+5.80%) today
Markets open · 1:37pm ET

Q1 2026 Earnings

Reported Mar 12, 2026, 4:09pm ET · SEC source
$6.06
Beat +3.18%
EPS · est. $5.87
$6.4B
Beat +1.93%
Revenue · est. $6.3B
−7.6%
Trailing market
ADBE vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%+6%Mar 12Mar 13report 4:09pm ETearnings−0.5%−2.2%
−3%0+3%+6%Mar 12Mar 13earnings−0.5%−2.2%
ADBE −2.2%S&P 500 −0.5%
−3%0+3%+6%Mar 12Mar 13report 4:09pm ETearnings−0.6%−2.2%
−3%0+3%+6%Mar 12Mar 13earnings−0.6%−2.2%
ADBE −2.2%NASDAQ −0.6%
−4%0+4%+8%Mar 11Mar 20report 4:09pm ETearnings−1.9%−1.2%
−4%0+4%+8%Mar 11Mar 20earnings−1.9%−1.2%
ADBE −1.2%S&P 500 −1.9%
−4%0+4%+8%Mar 11Mar 20report 4:09pm ETearnings−1.9%−1.2%
−4%0+4%+8%Mar 11Mar 20earnings−1.9%−1.2%
ADBE −1.2%NASDAQ −1.9%
−7.58%
Day of report
+1.02%
Next session
−0.47%
One week
−1.87%
30 days

S&P 500 over the same 30 days: +5.68%.

Did ADBE Beat Earnings? Q1 2026 Results

Adobe delivered a strong start to fiscal 2026, posting record Q1 results that extended its streak to four consecutive quarters of beating consensus EPS estimates. Non-GAAP diluted EPS came in at $6.06, clearing the $5.87 consensus estimate by 3.18%, while revenue of $6.40 billion topped expectations by 1.93% and grew 12.0% year over year, driven in large part by subscription momentum that saw AI-first annualized recurring revenue more than triple compared to the year-ago period. Total ARR exited the quarter at $26.06 billion, with subscription revenue climbing 13% to $6.20 billion, underscoring the durability of Adobe's recurring model even as <a href="https://247wallst.com/investing/2026/03/07/hpe-oracle-and-adobe-earnings-coming-next-week/">investors had been watching closely</a> for signs of AI monetization. The quarter also brought a significant leadership announcement, with CEO Shantanu Narayen set to transition out of the role after 18 years. Looking ahead, Adobe is guiding Q2 revenue of $6.43 billion to $6.48 billion and non-GAAP EPS of $5.80 to $5.85, while reaffirming its full-year FY2026 targets.

Key Takeaways
  • AI-first ARR more than tripling year over year
  • Total subscription revenue growth of 13% year over year
  • Business Professionals & Consumers subscription revenue growing 16% year over year
  • Creative & Marketing Professionals subscription revenue growing 12% year over year
  • RPO growth of 13% year over year to $22.22 billion

“Adobe delivered record Q1 results with AI-first ARR more than tripling year over year and subscription revenue growing 13 percent.”

Adobe CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2026, Adobe targets total revenue of $6.43 billion to $6.48 billion, Business Professionals & Consumers subscription revenue of $1.80 billion to $1.82 billion, Creative & Marketing Professionals subscription revenue of $4.41 billion to $4.44 billion, GAAP EPS of $4.35 to $4.40, and non-GAAP EPS of $5.80 to $5.85. Q2 targets assume non-GAAP operating margin of ~44.5%, GAAP tax rate of ~22.5%, non-GAAP tax rate of ~18.0%, and diluted share count of ~402 million. Adobe is also reaffirming its previously issued full-year FY2026 targets. Targets do not include contributions from the pending acquisition of Semrush Holdings, Inc.

ADBE YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$2.0B$4.0B$6.0B$5.7B$6.4BRevenue$5.1B$5.7BGross Profit$2.2B$2.4BOperating Income$1.8B$1.9BNet Income
$0$2.0B$4.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

ADBE Revenue by Segment

Digital Experience Subscriptions$6.2B+13.0%
Digital Media
Creative & Marketing Professionals Subscriptions$4.4B+12.0%
Business Professionals & Consumers Subscriptions$1.8B+16.0%
Digital Experience

Figures from SEC filings and company reports. Not investment advice.