Adobe (ADBE) reported record revenue of $6.76 billion for its fiscal third quarter of 2026, which ended August 28, up 13% from a year earlier, and raised its full-year revenue and earnings targets [1]. Earnings were $4.62 a share under generally accepted accounting principles (GAAP) and $6.13 on a non-GAAP basis, and annualized recurring revenue reached $27.50 billion [1]. A week earlier, Adobe named Anil Chakravarthy its next chief executive, effective December 1, 2026, with Shantanu Narayen becoming executive chair [2].
What did Adobe report for fiscal Q3 2026?
| Fiscal Q3 (quarter ended Aug 28) | 2026 | 2025 | Change |
|---|---|---|---|
| Total revenue | $6.76 billion | $5.99 billion | +13% (12% constant currency) |
| Subscription revenue | $6.58 billion | $5.79 billion | +14% |
| Business Professionals and Consumers subscription revenue | $1.91 billion | n/a | +16% |
| Creative and Marketing Professionals subscription revenue | $4.65 billion | n/a | +13% |
| GAAP operating income | $2.35 billion | $2.17 billion | +8% |
| Non-GAAP operating income | $2.97 billion | n/a | n/a |
| GAAP diluted EPS | $4.62 | n/a | n/a |
| Non-GAAP diluted EPS | $6.13 | n/a | n/a |
Source: Adobe fiscal Q3 2026 results filed with the SEC [1]. Non-GAAP figures exclude items such as stock-based compensation and amortization, as defined by Adobe.
For the first nine months of fiscal 2026, revenue was $19.78 billion, up from $17.58 billion a year earlier [1]. GAAP net income in the quarter was $1.83 billion and non-GAAP net income $2.42 billion [1]. Remaining performance obligations, contracted revenue not yet recognized, were $22.16 billion, of which 67% is expected to be recognized within 12 months [1]. Adobe repurchased about 9.5 million shares in the quarter [1].
Is AI helping or hurting Adobe?
A common question about Adobe in 2026 has been whether generative AI tools could let more people create images, video and documents without Adobe's paid software. Adobe's answer has been to add AI to its own products and to widen its free and low-cost tiers to draw in more users, a strategy DataPorium examined earlier [4].
The quarter's numbers support Adobe's side of the argument so far. The company said it passed 1 billion monthly active users across its creativity and productivity products [1]. Subscription revenue from business professionals and consumers, the segment that includes Acrobat and Express, grew 16%, faster than the company as a whole [1]. Interim chief financial officer Steve Day said Adobe is "expanding our user base through a freemium strategy and deepening engagement with agentic experiences" [1].
Growth is not accelerating sharply, though. Revenue grew 13% in the quarter, and Adobe's own fourth-quarter target implies revenue of $6.80 billion to $6.85 billion [1].
How profitable is Adobe?
Adobe remains highly profitable, though costs grew faster than revenue in the quarter. Gross profit was $6.00 billion, or 88.7% of revenue, compared with 89.3% a year earlier, as subscription cost of revenue rose to $633 million from $510 million [1]. Operating expenses rose 14.8% to $3.64 billion: research and development grew 18% to $1.29 billion, sales and marketing 11% to $1.83 billion, and general and administrative costs 20% to $488 million [1]. As a result, GAAP operating income rose 8% to $2.35 billion, slower than revenue, and the GAAP operating margin was 34.8% [1].
Adobe continues to return cash through buybacks rather than dividends. It spent $2.23 billion repurchasing shares in the first nine months of fiscal 2026, up from $2.06 billion a year earlier, and held $4.36 billion of cash and $1.28 billion of short-term investments at the end of the quarter [1].
What are Adobe's targets for Q4 and fiscal 2026?
| Target | Fiscal Q4 2026 | Fiscal 2026 |
|---|---|---|
| Total revenue | $6.80 billion to $6.85 billion | $26.576 billion to $26.626 billion |
| Business Professionals and Consumers subscription revenue | $1.93 billion to $1.95 billion | $7.470 billion to $7.490 billion |
| Creative and Marketing Professionals subscription revenue | $4.665 billion to $4.695 billion | $18.242 billion to $18.272 billion |
| Non-GAAP operating margin assumed | About 44% | About 45% |
Source: Adobe targets, September 10, 2026 [1].
Who is Adobe's new CEO?
On September 2, 2026, Adobe's board appointed Anil Chakravarthy, the president of its Customer Experience Orchestration business, as president and chief executive officer and a member of the board, effective December 1, 2026 [2]. Narayen will retire as CEO and become executive chair of the board [2]. In his results statement, Narayen said he has "confidence that Anil will build on this momentum to drive Adobe's next chapter of growth and innovation in the AI era" [1].
Adobe also disclosed that David Wadhwani, president of its Creativity and Productivity business, decided to step down effective September 27, 2026, and would stay on as a senior advisor for a transition period [2]. Day is serving as interim CFO [1].
How has Adobe stock performed?
DataPorium data show Adobe shares closed at $285.75 on September 3, the day the CEO announcement was released, and at $248.83 on September 10, the day of the results, which came out after the market closed [3]. The stock rose 1.4% to $252.23 on September 11 [3]. It ended September at $239.94, up 17.0% for the third quarter from $205.02 on June 30, but down 31.4% for 2026 from $349.99 at the end of 2025 [3]. The S&P 500 information technology sector returned 7.2% in the quarter [5]. Adobe closed at $242.27 on October 9 [3].
Adobe's fiscal Q3 2026 revenue rose 13% to a record $6.76 billion and it passed 1 billion monthly active users, while the stock stayed 31% lower for the year ahead of a CEO change on December 1.
Frequently asked questions
How much revenue did Adobe report in fiscal Q3 2026?
Adobe reported record revenue of $6.76 billion for the quarter ended August 28, 2026, up 13% from a year earlier [1].
Who is the new CEO of Adobe?
Anil Chakravarthy, president of Adobe's Customer Experience Orchestration business, becomes president and CEO on December 1, 2026; Shantanu Narayen becomes executive chair [2].
What is Adobe's revenue guidance for fiscal 2026?
Adobe targets fiscal 2026 revenue of $26.576 billion to $26.626 billion and fourth-quarter revenue of $6.80 billion to $6.85 billion [1].
Why is Adobe stock down in 2026?
Adobe shares were down 31.4% for 2026 through September amid investor concern that AI tools could disrupt traditional creative software, even as revenue kept growing 13% [1][3][4].
Sources & References
- [1] Adobe, third quarter fiscal 2026 results (Form 8-K exhibit 99.1, September 10, 2026)
- [2] Adobe, Form 8-K on the appointment of Anil Chakravarthy as President and CEO (September 2026)
- [3] DataPorium Adobe (ADBE) stock page (prices)
- [4] DataPorium article, Adobe's freemium AI strategy and future growth
- [5] First Trust Portfolios, The Only Constant is Change (S&P 500 sector total returns, Q3 2026)
