Adobe reports third-quarter revenue of $6.76 billion and raises annual guidance

Adobe Inc. (ADBE) reported record third-quarter financial results for the period ended Aug. 28, 2026, driven by artificial intelligence momentum and rising subscription revenue, according to an 8-K filing.

Key takeaways

• Total revenue reached $6.76 billion, representing 13% year-over-year growth.
• GAAP diluted earnings per share was $4.62, while non-GAAP diluted earnings per share was $6.13.
• Total Annualized Recurring Revenue exiting the quarter hit $27.50 billion.
• The company raised its full-year fiscal 2026 revenue and earnings per share targets.

Third-quarter results

Adobe achieved record revenue across its operating segments during the third quarter of fiscal 2026, alongside higher operating income and cash flows. Total subscription revenue rose to $6.58 billion, up from $5.79 billion a year earlier.

Here's how the company did:

• Total revenue was $6.76 billion, up from $5.98 billion a year earlier, representing 13% growth, or 12% in constant currency.
• Business Professionals & Consumers subscription revenue reached $1.91 billion, up 16% year over year, or 15% in constant currency.
• Creative & Marketing Professionals subscription revenue reached $4.65 billion, up 13% year over year, or 12% in constant currency.
• GAAP operating income was $2.35 billion, and non-GAAP operating income was $2.97 billion.
• GAAP net income was $1.83 billion, and non-GAAP net income was $2.42 billion.
• Cash flows from operations reached a record $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," said Shantanu Narayen, chair and CEO, Adobe, in a statement. "Reaching a landmark of more than one billion monthly active users is a defining moment for Adobe, and I have confidence that Anil will build on this momentum to drive Adobe's next chapter of growth and innovation in the AI era."

Updated financial targets

Following the third-quarter performance, Adobe updated its financial outlook for the fourth quarter and the full fiscal year 2026.

For the fourth quarter, the company expects total revenue between $6.80 billion and $6.85 billion. Fourth-quarter Business Professionals & Consumers subscription revenue is targeted between $1.93 billion and $1.95 billion, while Creative & Marketing Professionals subscription revenue is targeted between $4.665 billion and $4.695 billion. Fourth-quarter diluted earnings per share is targeted at $4.65 to $4.70 on a GAAP basis and $6.30 to $6.35 on a non-GAAP basis.

For the full fiscal year 2026, the company raised its targets. Total revenue is now expected to reach $26.576 billion to $26.626 billion, with total ending annualized recurring revenue growth projected at 10.2% year over year. Full-year diluted earnings per share is targeted at $18.12 to $18.17 on a GAAP basis and $24.45 to $24.50 on a non-GAAP basis.

"Adobe delivered double-digit revenue and EPS growth in Q3 and we're raising full year revenue and EPS targets," said Steve Day, senior vice president and interim CFO, Adobe, in a statement. "We are expanding our user base through a freemium strategy and deepening engagement with agentic experiences to deliver long-term durable growth."

By the numbers

What happens next

Adobe repurchased approximately 9.5 million shares during the third quarter, utilizing $2.23 billion in cash for common stock repurchases. The company webcasted its third-quarter earnings conference call on Wednesday afternoon and filed its full financial disclosures with the Securities and Exchange Commission.

The company's fourth-quarter financial targets assume a non-GAAP operating margin of approximately 44.0%, a GAAP tax rate of approximately 22.0%, a non-GAAP tax rate of approximately 18.0%, and a diluted share count of approximately 389 million shares.