Adobe reports record $6.76B Q3 revenue, names Anil Chakravarthy next CEO
Adobe reported record Q3 fiscal 2026 revenue of $6.76 billion, up 13% year over year, with non-GAAP EPS rising 15% to $6.13. AI-first annual recurring revenue topped $650 million, growing over 150% year over year. The company announced Anil Chakravarthy will succeed Shantanu Narayen as CEO on December 1, with Narayen becoming executive chairman. Adobe raised full-year revenue guidance to $26.576-$26.626 billion and now has over 1 billion monthly active users.
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Adobe hits 1 billion users but Morgan Stanley keeps underweight rating on AI conversion concerns
Adobe Inc. reported fiscal third-quarter results on September 10, 2026, showing its total user base topped one billion for the first time, with revenue of $6.76 billion (up 13% year over year) and non-GAAP EPS of $6.13 (up 15%). Creative freemium users, including AI tools Firefly and Express, surpassed 100 million, up over 70% year over year. Despite the record user growth, Morgan Stanley analyst Adam Wood reiterated an Underweight rating and $240 price target, citing decelerating remaining performance obligations (8% growth, down from 12-13%), full-year ARR guidance held at 10.2%, and the need for roughly $775 million in net new ARR in Q4—nearly double Q3's total. The stock closed at $252.23 on Friday, up 1.37%, but remains well below its 52-week high of $370.86. Adobe also announced on September 3 that Anil Chakravarthy will become CEO on December 1, succeeding Shantanu Narayen.
Read sourceJPMorgan lowers Adobe stock price target to $315 amid AI-driven user growth strategy
JPMorgan lowered its price target on Adobe stock to $315 from $340 while maintaining an Overweight rating, following Adobe's fiscal Q3 2026 earnings report. Adobe reported total revenue of $6.76 billion (up 12% YoY) and adjusted EPS of $6.13 (up 15% YoY), beating expectations. However, the bank cited a modestly below-consensus Q4 revenue outlook and a slowdown in remaining performance obligations growth to 9% YoY, its slowest since early fiscal 2023. JPMorgan attributed the softer guidance to Adobe's focus on user acquisition over pricing, part of its freemium AI strategy. Adobe's tools now reach over one billion monthly active users, with Creative freemium users (including Firefly and Express) exceeding 100 million, up 70% YoY. CEO Shantanu Narayen will move to executive chair on December 1, with Anil Chakravarthy becoming CEO. Despite the lowered target, JPMorgan argued the shares are inexpensive with a low bar for upside from monetization recovery.
Read sourceAdobe's AI Bet Drives Record Revenue as New CEO Chakravarthy Takes Over
Adobe (ADBE) reported record third-quarter revenue of $6.76 billion, up 13% year over year, driven by its AI investments. AI-first annual recurring revenue (ARR) topped $650 million, growing more than 150% year over year, with Firefly ending ARR up 40% quarter over quarter and Acrobat AI Assistant doubling monthly active users. Total monthly active users surpassed 1 billion. The company raised its full-year revenue target to $26.58-$26.63 billion and non-GAAP EPS to $24.45-$24.50. Operating cash flow hit a record $2.52 billion. Adobe also agreed to acquire Topaz Labs for AI image and video enhancement. However, remaining performance obligations grew only 8% to $22.16 billion, trailing revenue growth. A foreign-exchange headwind is expected in Q4. Anil S. Chakravarthy will succeed Shantanu Narayen as CEO on December 1. Hedge funds reduced positions from 86 to 81, and short interest is 4.89% of float. The article notes a forward P/E of 9.22, suggesting market skepticism despite strong AI-driven growth.
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Adobe's AI Bet Finally Shows in Revenue as Firefly ARR Surges 150% Year Over Year
Adobe reported record third-quarter revenue of $6.76 billion, up 13% year over year, and raised its full-year revenue and profit targets. Non-GAAP EPS climbed 15% to $6.13. AI-first ending annual recurring revenue (ARR) topped $650 million, growing more than 150% year over year, driven by Firefly and Acrobat AI Assistant. Monthly active users surpassed 1 billion. The company also announced a leadership change, with Anil S. Chakravarthy set to become CEO on December 1. Operating cash flow hit a record $2.52 billion, and Adobe bought back 9.5 million shares. Management raised full-year revenue guidance to $26.58-$26.63 billion and non-GAAP EPS to $24.45-$24.50. However, remaining performance obligations grew only 8% year over year to $22.16 billion, trailing revenue growth. A foreign-exchange headwind is expected in the fourth quarter. Hedge funds trimmed Adobe positions from 86 to 81 quarter over quarter. The article notes that AI-first ARR remains a small slice of total ARR of $27.50 billion, and the Topaz Labs acquisition awaits regulatory approval.
Adobe CEO Shantanu Narayen Steps Down; Anil Chakravarthy to Lead in Agentic AI Era
Adobe announced a major leadership transition as Shantanu Narayen, CEO for 29 years, will step down on December 1, with Anil Chakravarthy, President of Customer Experience Orchestration, succeeding him as CEO and joining the Board. Narayen will become Executive Chairman. The change comes as Adobe pivots toward Agentic AI, with Chakravarthy outlining a three-pillar strategy focusing on interface openness, model flexibility, and enterprise context integration. Adobe reported strong Q3 2026 financial results with revenue of $6.76 billion (up 12% YoY) and AI-first ARR surpassing $650 million (up 150% YoY). Key product highlights include Acrobat AI Assistant MAU doubling quarter-over-quarter, Creative freemium MAU exceeding 100 million, and the acquisition of Topaz Labs. The company raised its full-year 2026 revenue guidance to $26.576-$26.626 billion. During the Q&A session, executives addressed concerns about balancing freemium growth with price increases, slower RPO growth, and outlined hybrid AI monetization pathways including credit packs and premium subscription tiers.
Read sourceAdobe Q3 Revenue Rises 13% to $6.76B, Names Anil Chakravarthy as Next CEO
Adobe reported strong Q3 fiscal 2026 results with revenue of $6.76 billion, up 13% year over year, and non-GAAP EPS rising 15% to $6.13. The company also announced a leadership transition, with Anil Chakravarthy set to become president and CEO on December 1, while current CEO Shantanu Narayen will move to executive chair. Chakravarthy plans to focus on 'agentic software' across Adobe's businesses. Adobe raised its full-year revenue forecast to $26.576-$26.626 billion and non-GAAP EPS guidance to $24.45-$24.50, citing adoption of Firefly, Acrobat AI, and enterprise AI products. AI-first ending ARR exceeded $650 million, growing more than 150% year over year. The company has over 1 billion monthly active users, including more than 100 million creative freemium users.