Adobe Posts Record Q3 Revenue and Lifts Targets

Adobe reported record revenue of $6.76 billion for its third fiscal quarter ended August 28, 2026, marking a 13% increase year over year, or 12% in constant currency. Diluted earnings per share reached $4.62 on a GAAP basis and $6.13 on a non-GAAP basis.

The company crossed one billion monthly active users across its creativity and productivity solutions. Total Annualized Recurring Revenue reached $27.50 billion exiting the quarter, while AI-first ARR grew more than 150% compared with the same period last year.

Total Customer Group subscription revenue rose 14% to $6.56 billion. Within this group, Business Professionals & Consumers generated $1.91 billion, up 16%, while Creative & Marketing Professionals contributed $4.65 billion, an increase of 13%.

GAAP operating income was $2.35 billion, while non-GAAP operating income hit $2.97 billion. GAAP net income was $1.83 billion, and non-GAAP net income reached $2.42 billion. Operating cash flow set a quarterly record of $2.52 billion, remaining performance obligations stood at $22.16 billion with 67% current, and the company repurchased approximately 9.5 million shares.

Steve Day, senior vice president and interim CFO of Adobe, said the company is raising full-year revenue and EPS targets following double-digit growth in both metrics. For the fourth quarter of fiscal 2026, Adobe assumes a non-GAAP operating margin of approximately 44.0%, a GAAP tax rate of about 22.0%, a non-GAAP tax rate of roughly 18.0%, and a diluted share count of around 389 million.