Adobe raises annual revenue, profit targets as AI-first ARR more than doubles YoY

Adobe

10/09/2026 21:19

Overview
Global creative software provider's Q3 revenue rose 13% yr/yr, slightly beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company repurchased 9.5 mln shares during the quarter

Outlook
Adobe raises full-year 2026 revenue target to $26.576 bln-$26.626 bln
Company expects Q4 revenue between $6.80 bln and $6.85 bln
Adobe sees full-year 2026 non-GAAP EPS at $24.45-$24.50

Result Drivers
AI-FIRST OFFERINGS - Co said AI-first ARR grew more than 150% yr/yr, supporting overall revenue growth
USER BASE EXPANSION - Co said it reached 1 bln monthly active users, citing expanding customer reach and engagement
SUBSCRIPTION GROWTH - Co reported 14% yr/yr growth in total subscription revenue, with strong gains in both business and consumer segments

Company press release: ID:nBw9GBgDda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$6.76 bln
$6.70 bln (27 Analysts)
Q3 Adjusted EPS
Beat
$6.13
$6.09 (28 Analysts)
Q3 EPS
 
$4.62
 
Q3 Adjusted Net Income
Slight Beat*
$2.42 bln
$2.41 bln (22 Analysts)
Q3 Net Income
 
$1.83 bln
 
Q3 Adjusted Operating Income
Slight Beat*
$2.97 bln
$2.95 bln (24 Analysts)
Q3 Operating Income
 
$2.35 bln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 13 "strong buy" or "buy", 21 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Adobe Inc is $260.00, about 2% above its September 9 closing price of $254.86
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)