Adobe Inc. (NASDAQ:ADBE) reported third-quarter earnings and revenue above analyst estimates and raised its fiscal 2026 guidance, while its fourth-quarter revenue forecast came in slightly below consensus. Shares declined 2.7% in premarket trading on Friday.
Adjusted earnings per share were $6.13 for the third quarter, compared with an analyst consensus of $6.07. Revenue increased 13% year on year to $6.76 billion, above the $6.69 billion estimate.
For the fourth quarter, Adobe forecast revenue of $6.80 billion to $6.85 billion. The midpoint of $6.825 billion compares with the analyst consensus of $6.85 billion.
The company expects fourth-quarter adjusted earnings per share of $6.30 to $6.35. The midpoint of $6.325 compares with the $6.30 consensus cited in the source.
Adobe Raises Fiscal 2026 Guidance
Adobe increased its full-year fiscal 2026 revenue guidance to between $26.576 billion and $26.626 billion. It also raised its adjusted earnings per share forecast to a range of $24.45 to $24.50.
The company said its creativity and productivity products have surpassed one billion monthly active users.
“Results were uneventful with a small revenue beat & raise and unchanged operating margin views,” Jefferies analysts commented, adding that the company’s valuation remains “depressed as investors await clarity.”
Subscription Revenue Reaches $6.56 Billion
Total Customer Group subscription revenue increased 14% year on year to $6.56 billion.
Business Professionals & Consumers subscription revenue rose 16% to $1.91 billion, while Creative & Marketing Professionals subscription revenue increased 13% to $4.65 billion.
Adobe generated $2.52 billion in operating cash flow during the quarter and repurchased approximately 9.5 million shares.
Annualised recurring revenue at the end of the quarter was $27.50 billion.
“Adobe delivered record Q3 results, reflecting the strength of our AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience,” Chair and CEO Shantanu Narayen said.