Adobe shares slip after Q2 adjusted EPS tops estimates and outlook raised

Adobe Inc. (NASDAQ: ADBE ) posted its third-quarter fiscal 2026 results after Thursday’s closing bell, beating estimates on the top and bottom lines. Here’s a look at the details inside the report. ADBE stock is moving. Watch the price action here. Adobe Q3 Details Adobe reported adjusted quarterly earnings of $6.13 per share, which beat the Street estimate of $6.09, per Pro data. Quarterly revenue came in at $6.76 billion, which beat the consensus estimate of $6.69 billion by 1%. Third Quarter FY2026 Customer Group Highlights Total Customer Group subscription revenue was $6.56 billion, which represents 14% year-over-year growth. Business Professionals & Consumers subscription revenue was $1.91 billion, which represents 16% year-over-year growth. Creative & Marketing Professionals subscription revenue was $4.65 billion, which represents 13% year-over-year growth. Other Quarterly Highlights Total Annualized Recurring Revenue (ARR) exiting the quarter was $27.50 billion. Non-GAAP operating income was $2.97 billion, and non-GAAP net income was $2.42 billion. Record third quarater cash flows from operations were $2.52 billion. Exiting the quarter, Remaining Performance Obligations (RPO) were $22.16 billion, and Current Remaining Performance Obligations (cRPO) were 67%. “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, 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.” Read Also: Joby Aviation Begins Autonomous Cross-Country Tour as Stock Sits at Year's Low Looking Ahead Adobe is looking for fourth-quarter adjusted EPS of $6.30 to $6.35, versus the $6.32 analyst estimate, and revenue in a range of $6.8 billion to $6.85 billion, versus the $6.84 billion estimate. Adobe raised its fiscal 2026 adjusted EPS guidance to $24.45-$24.50, versus the $24.36 analyst estimate, and raised its revenue outlook to $26.58 billion-$26.63 billion, versus the $26.51 billion estimate. See More: Top Value Stocks ADBE Stock Price: According to data Pro, Adobe stock was down 1.15% to $245.98 in Thursday’s extended trading. Photo: Shutterstock