Adobe Booked $6.76 Billion in Three Months and Raised Its Full Year. Its Chief Executive Hands Over on December 1.

Adobe reported revenue of $6.76 billion for its third fiscal quarter on September 10, up 13% from a year earlier and 12% in constant currency. The quarter ended August 28, 2026. The company raised its full-year targets and reported a third-quarter record for operating cash flow. Separately, announced a week earlier, the company said its chief executive since 2007 hands over on December 1.

The quarter

• Revenue: $6.76 billion, up 13% year over year, 12% in constant currency.
• Creative and Marketing Professionals subscription revenue: $4.65 billion, up 13%.
• Business Professionals and Consumers subscription revenue: $1.91 billion, up 16%.
• GAAP diluted earnings per share: $4.62. Non-GAAP diluted earnings per share: $6.13.
• Operating cash flow: $2.52 billion, a record for a third quarter.
• Share repurchases: approximately 9.5 million shares during the quarter.

The smaller of the two customer groups grew faster than the larger one - 16% against 13% - which is the shape of a business whose consumer and small-business tier is compounding off a lower base.

The recurring-revenue picture

Annualised recurring revenue exiting the quarter was $27.50 billion. Remaining performance obligations, the contracted revenue Adobe has not yet recognised, stood at $22.16 billion, of which 67% is current - that is, expected to be recognised within twelve months.

Adobe said AI-first ARR grew more than 150% year over year and that it now reaches one billion monthly active users across its creativity and productivity products. Neither figure is accompanied by a dollar amount for the AI-first base, so the growth rate cannot be converted into revenue from the release alone.

The guidance

• Fourth-quarter revenue: $6.80 billion to $6.85 billion.
• Fourth-quarter GAAP EPS: $4.65 to $4.70. Non-GAAP EPS: $6.30 to $6.35.
• Full-year fiscal 2026 revenue: $26.576 billion to $26.626 billion.
• Full-year GAAP EPS: $18.12 to $18.17. Non-GAAP EPS: $24.45 to $24.50.
• Full-year total ARR growth: 10.2% year over year.

The full-year ARR growth target of 10.2% sits below the 13% revenue growth the company reported for the quarter. Those measure different things - one a stock of contracted recurring revenue, the other a flow of recognised revenue - but the gap is the number to watch across the next several quarters.

The handover

Adobe announced on September 3 that Anil Chakravarthy becomes president and chief executive on December 1, 2026 and joins the board of directors. Shantanu Narayen, chief executive since 2007, becomes executive chair and will work with Chakravarthy through the transition.

Chakravarthy joined Adobe in January 2020 as executive vice president and general manager of Digital Experience, and was promoted to president of Digital Experience and worldwide field operations in December 2021. Before Adobe he was chief executive of Informatica for four years.

The Board unanimously determined that Anil is the right leader for Adobe's next chapter of growth.

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