European Investor
11 Sep 2026, 09:15
Adobe Stock Falls 3% Premarket Despite Record Q3 Revenue and Raised Full-Year Outlook
Adobe shares fell 3% in premarket trading Friday despite the company reporting record fiscal third-quarter results, strong AI growth and higher full-year revenue and earnings targets.
Q3 revenue increased 13% year-over-year to a record $6.76 billion, while non-GAAP EPS reached $6.13. Subscription revenue rose 14% to $6.56 billion, and total annualized recurring revenue ended the quarter at $27.50 billion. Operating cash flow also reached a Q3 record of $2.52 billion.
AI adoption continued to accelerate, with Adobe’s AI-first ARR growing more than 150% year-over-year. The company also surpassed 1 billion monthly active users across its creativity and productivity products, highlighting the expanding reach of its freemium and AI-focused strategy.
Adobe raised its FY2026 revenue target to $26.576 billion–$26.626 billion and now expects non-GAAP EPS of $24.45–$24.50. For Q4, revenue is projected at $6.80 billion–$6.85 billion, with non-GAAP EPS of $6.30–$6.35.
The premarket decline despite strong headline results suggests investors may have been looking for even stronger forward growth, particularly as Adobe faces high expectations around converting rapid AI adoption into accelerating recurring revenue.
Adobe shares fell 3% in premarket trading Friday despite the company reporting record fiscal third-quarter results, strong AI growth and higher full-year revenue and earnings targets.
Q3 revenue increased 13% year-over-year to a record $6.76 billion, while non-GAAP EPS reached $6.13. Subscription revenue rose 14% to $6.56 billion, and total annualized recurring revenue ended the quarter at $27.50 billion. Operating cash flow also reached a Q3 record of $2.52 billion.
AI adoption continued to accelerate, with Adobe’s AI-first ARR growing more than 150% year-over-year. The company also surpassed 1 billion monthly active users across its creativity and productivity products, highlighting the expanding reach of its freemium and AI-focused strategy.
Adobe raised its FY2026 revenue target to $26.576 billion–$26.626 billion and now expects non-GAAP EPS of $24.45–$24.50. For Q4, revenue is projected at $6.80 billion–$6.85 billion, with non-GAAP EPS of $6.30–$6.35.
The premarket decline despite strong headline results suggests investors may have been looking for even stronger forward growth, particularly as Adobe faces high expectations around converting rapid AI adoption into accelerating recurring revenue.
