Key Highlights

  • Adobe reported third-quarter fiscal 2026 revenue of $6.76 billion, up 13% year on year, and raised its full-year targets.
  • Anil Chakravarthy will become chief executive on December 1, 2026, succeeding Shantanu Narayen, with Steve Day interim finance chief.
  • Subscription revenue was about $6.58 billion, GAAP earnings per diluted share were $4.62, and non-GAAP earnings per share were $6.13.
  • Fiscal 2026 revenue is targeted at $26.576 billion to $26.626 billion, with non-GAAP earnings per share of $24.45 to $24.50.

Adobe Inc. (NASDAQ:ADBE) reported third-quarter fiscal 2026 results on September 10, 2026 that combined record revenue with news of a change at the top.

Revenue reached $6.76 billion, up 13% year on year, and the company raised its full-year targets. It also disclosed that Anil Chakravarthy will become chief executive on December 1, 2026, succeeding Shantanu Narayen.

Adobe's Business

Adobe develops creative, document and marketing software sold mainly by subscription. Its Creative Cloud tools, Acrobat and Adobe Express serve individuals and businesses, while enterprise products support customer experience management and marketing workflows. The company groups subscription revenue by customer type. In the third quarter, Business Professionals and Consumers contributed $1.91 billion, up 16%, and Creative and Marketing Professionals contributed $4.65 billion, up 13%. In sector terms, Adobe is an application software and technology services provider whose fortunes depend on subscriber retention and pricing.

Third-quarter Figures

Subscription revenue was about $6.58 billion, compared with $5.79 billion a year earlier. GAAP earnings per diluted share were $4.62 against $4.18, and non-GAAP earnings per share were $6.13. GAAP net income was $1.83 billion, compared with $1.77 billion. Reports of the release put annualized recurring revenue at $27.50 billion, remaining performance obligations at $22.16 billion and operating cash flow at a record $2.52 billion.

Adobe said monthly active users across its products passed one billion, and that users of its free creative offerings exceeded 100 million. It also reported that annualized recurring revenue from products it describes as AI-first grew by more than 150%. These are company-defined measures, and the reports did not give a dollar figure for that AI-first base, which makes the growth rate hard to interpret.

Outlook as Reported

Management lifted its fiscal 2026 targets. Revenue is now expected in a range of $26.576 billion to $26.626 billion, versus a previous $26.5 billion to $26.6 billion, while non-GAAP earnings per share are targeted at $24.45 to $24.50, up from $24.35 to $24.45. For the fourth quarter, the company guided to revenue of $6.8 billion to $6.85 billion and non-GAAP earnings per share of $6.30 to $6.35. Full-year annualized recurring revenue growth is projected at 10.2%. All of these are targets, not outcomes.

Reports also said Steve Day is serving as interim chief financial officer, meaning both the top job and the finance function are in transition during heavy generative AI investment.

Where the Risks Sit

Adobe operates in a market where generative AI is changing how images, video and documents are produced. That creates an opportunity to add paid features, but it also invites competition from model developers and design-tool rivals, and it may alter customers' willingness to pay for traditional seat-based subscriptions. Annualized recurring revenue growth of 10.2% is slower than the 13% revenue growth reported for the quarter, so the outlook implies a moderation in the recurring base.

A leadership handover carries execution risk even when planned, and interim finance leadership adds another moving part. Currency movements also matter: the reports said growth was 12% in constant currency against 13% as reported.

Adobe's Handover Year: CEO, CFO and AI Monetization

The fourth-quarter report will show whether Adobe reaches its raised targets. Also worth following are the timing and content of the CEO transition on December 1, the appointment of a permanent chief financial officer, disclosure of monetization for AI features, and whether that free-user base converts into paying subscribers.