Adobe Q3 2026 Revenue and EPS Top Estimates but Soft Q4 Sales Guidance Pulls Stock Lower

Adobe reported third-quarter fiscal 2026 revenue of $6.76 billion, above the $6.70 billion analyst estimate and up 13% year over year, while adjusted EPS of $6.13 beat the $6.09 consensus by six cents and rose 15% from the prior-year period. GAAP EPS came in at $4.62, up 11% year over year. Non-GAAP operating income reached $3.0 billion against an estimate of $2.95 billion, and cash flow from operations was $2.5 billion. Annual recurring revenue stood at $27.5 billion, with AI-first ARR growing more than 150% year over year. The company also crossed one billion monthly active users, a milestone CEO Shantanu Narayen called a defining moment for Adobe.

Adobe raised its full-year fiscal 2026 targets, guiding revenue to a range of $26.576 billion to $26.626 billion against an estimate of $26.51 billion, and adjusted EPS to $24.45 to $24.50 versus the $24.36 consensus. The company projects full-year ARR growth of 10.2% year over year. For the fourth quarter, Adobe guided revenue to $6.80 billion to $6.85 billion, bracketing the $6.84 billion estimate but landing toward its low end, and adjusted EPS to $6.30 to $6.35 against a $6.32 estimate. The slightly soft Q4 revenue outlook prompted a dip in the stock after the results were released.