Adobe (ADBE) investor relations material

Executive summary

• Achieved record Q3 FY26 revenue of $6.76 billion, up 13% year-over-year (12% in constant currency), driven by strong demand for subscription-based and AI-powered solutions.

• GAAP EPS was $4.62 (up 11% YoY); non-GAAP EPS was $6.13 (up 15% YoY); net income reached $1.83 billion, up 3% YoY.

• Announced CEO transition: Anil Chakravarthy to become CEO effective December 1, with Shantanu Narayen moving to Executive Chair.

• AI and agentic software are central to growth, with AI-first ARR exceeding $650 million, up 150% YoY, and over 1 billion monthly active users.

• Integrated all former business segments into a single operating segment to reflect unified selling and product innovation.

Financial highlights

• Total ending ARR reached $27.5 billion, up 11.2% YoY.

• Subscription revenue totaled $6.56 billion, up 14% YoY (13% in constant currency), representing 97% of total revenue.

• RPO was $22.16 billion, up 8% YoY; CRPO up 9% YoY.

• Cash flow from operations hit a Q3 record of $2.52 billion; cash and short-term investments at $5.64 billion.

• Repurchased 9.5 million shares; $24.55 billion remains under April 2026 authorization.

Outlook and guidance

• Q4 FY26 revenue targeted at $6.8–$6.85 billion; GAAP EPS $4.65–$4.70; non-GAAP EPS $6.30–$6.35.

• FY26 revenue guidance raised to $26.576–$26.626 billion; GAAP EPS $18.12–$18.17; non-GAAP EPS $24.45–$24.50.

• FY26 ending ARR growth expected at 10.2% YoY; non-GAAP operating margin expected at ~45%.

• Management expects continued growth driven by AI-powered solutions and expansion across customer groups.

• Macroeconomic uncertainties, including inflation, interest rates, and geopolitical risks, may impact future results.