Adobe reported record revenue of $6.76 billion for its third quarter of fiscal year 2026, driven by higher subscription sales and the growing use of its artificial intelligence (AI) tools.
Revenue for the quarter ended Aug. 28 rose 13% from a year earlier, or 12% when the effects of currency movements were removed. The results prompted Adobe to raise its full-year revenue and earnings forecasts.
Adobe, a software company known for Photoshop, Acrobat, and its other creative and document tools, said subscription revenue reached $6.56 billion, up 14% year over year.
The figures show that Adobe is still attracting paying customers as it adds generative AI and automated features to products used for design, documents, marketing, and business work. It is also using free versions of its services to bring more people into its ecosystem, with the aim of turning some of them into paying subscribers.
“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, chair and CEO, 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.”
Subscription revenue from business professionals and consumers grew 16% to $1.91 billion. Revenue from creative and marketing professionals, Adobe’s larger customer group, increased 13% to $4.65 billion.
The faster growth in the business and consumer segment suggests Adobe is expanding beyond its traditional base of designers and other creative workers. Products for documents, productivity, and everyday content creation are becoming a bigger part of its growth strategy.
Adobe ended the quarter with annualized recurring revenue of $27.50 billion. This represents the subscription revenue it expects to receive over a year based on current contracts.
Net income reached $1.83 billion, while operating cash flow hit a third-quarter record of $2.52 billion. Adobe also repurchased about 9.5 million shares during the period.
“Adobe delivered double-digit revenue and EPS growth in Q3, and we’re raising full-year revenue and EPS targets,” said Steve Day, senior vice president and interim CFO, Adobe. “We are expanding our user base through a freemium strategy and deepening engagement with agentic experiences to deliver long-term durable growth.”
Adobe now expects fiscal 2026 revenue of between $26.576 billion and $26.626 billion. For the fourth quarter, it expects revenue of $6.80 billion to $6.85 billion