Adobe Shares Slip Despite Record Q3 Print: Details Inside

Adobe Inc. (NASDAQ:ADBE) posted its third-quarter fiscal 2026 results after Thursday’s closing bell, beating estimates on the top and bottom lines. Here’s a look at the details inside the report. 

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Adobe Q3 Details      

Adobe reported adjusted quarterly earnings of $6.13 per share, which beat the Street estimate of $6.09, per Benzinga Pro data.  

Quarterly revenue came in at $6.76 billion, which beat the consensus estimate of $6.69 billion by 1%.

Third Quarter FY2026 Customer Group Highlights

• Total Customer Group subscription revenue was $6.56 billion, which represents 14% year-over-year growth.
• Business Professionals & Consumers subscription revenue was $1.91 billion, which represents 16% year-over-year growth.
• Creative & Marketing Professionals subscription revenue was $4.65 billion, which represents 13% year-over-year growth.

Other Quarterly Highlights

• Total Annualized Recurring Revenue (ARR) exiting the quarter was $27.50 billion.
• Non-GAAP operating income was $2.97 billion, and non-GAAP net income was $2.42 billion.
• Record third quarater cash flows from operations were $2.52 billion.
• Exiting the quarter, Remaining Performance Obligations (RPO) were $22.16 billion, and Current Remaining Performance Obligations (cRPO) were 67%.

“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, CEO of Adobe.

“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.”

Looking Ahead

Adobe is looking for fourth-quarter adjusted  EPS of $6.30 to $6.35, versus the $6.32 analyst estimate, and revenue in a range of $6.8 billion to $6.85 billion, versus the $6.84 billion estimate.

Adobe raised its fiscal 2026 adjusted EPS guidance to $24.45-$24.50, versus the $24.36 analyst estimate, and raised its revenue outlook to $26.58 billion-$26.63 billion, versus the $26.51 billion estimate.

ADBE Stock Price: According to data from Benzinga Pro, Adobe stock was down 1.15% to $245.98 in Thursday’s extended trading.  

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