Adobe Inc. (NASDAQ:ADBE) shares continue to fall Friday despite reporting better-than-expected third-quarter financial results on Thursday after the market closed.
- Adobe stock is trading at depressed levels. What’s ahead for ADBE stock?
AI Momentum and Creativity Fuel Q3 Results
Adobe reported adjusted earnings per share of $6.13, beating the consensus estimate of $6.09. In addition, the company reported revenue of $6.760 billion, beating the consensus estimate of $6.693 billion.
Total Customer Group subscription revenue was $6.56 billion, representing 14% year-over-year growth. Business Professionals & Consumers subscription revenue was $1.91 billion, up 16% year-over-year, while Creative & Marketing Professionals subscription revenue was $4.65 billion, up 13% year-over-year.
“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 of 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.”
Total Adobe Annualized Recurring Revenue exiting the quarter was $27.50 billion. Remaining Performance Obligations were $22.16 billion, and Current Remaining Performance Obligations represented 67% of that total. The company repurchased approximately 9.5 million shares during the quarter.
Q4, FY26 Guidance
Adobe raised its fiscal-year 2026 adjusted earnings per share guidance from a range of $24.35 to $24.45 to a range of $24.45 to $24.50, versus the consensus estimate of $24.36. The company also raised its fiscal-year 2026 revenue guidance from a range of $26.500 billion to $26.600 billion to a range of $26.576 billion to $26.626 billion, versus the consensus estimate of $26.506 billion.
For the fourth quarter, Adobe sees adjusted earnings per share of $6.30 to $6.35, versus the consensus estimate of $6.32, and revenue of $6.800 billion to $6.850 billion, versus the consensus estimate of $6.840 billion.
Adobe Shares Slip
ADBE Price Action: At the time of publication, Adobe shares are trading 3.81% lower at $239.35, according to data from Benzinga Pro.
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