Adobe shares slip after Q2 adjusted EPS tops estimates and outlook raised
Adobe’s NASDAQ:ADBE shares fell 3.5% in extended trading after the Photoshop maker reported second-quarter results and guidance that topped Wall Street’s estimates. For the period ending Aug. 28, it earned an adjusted $6.13 per share and revenue rose 13% year-over-year to $6.76B.
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Adobe reported third-quarter fiscal 2026 adjusted earnings of $6.13 per share, topping the Street estimate of $6.09, according to Pro data. Quarterly revenue was $6.76 billion, above the $6.69 billion consensus and 1% higher than expected. Total Customer Group subscription revenue reached $6.56 billion, up 14% year over year. Business Professionals & Consumers subscription revenue was $1.91 billion, a 16% increase, while Creative & Marketing Professionals subscription revenue was $4.65 billion, up 13%.
Total annualized recurring revenue exiting the quarter was $27.50 billion. Non-GAAP operating income was $2.97 billion, non-GAAP net income was $2.42 billion and cash flow from operations hit a record $2.52 billion. Adobe said remaining performance obligations were $22.16 billion, while current remaining performance obligations were 67%. The company guided fourth-quarter adjusted EPS to $6.30 to $6.35, versus the $6.32 analyst estimate, and revenue to $6.8 billion to $6.85 billion, versus the $6.84 billion estimate.
Adobe lifted fiscal 2026 adjusted EPS guidance to $24.45 to $24.50, above the $24.36 analyst estimate, and raised its revenue outlook to $26.58 billion to $26.63 billion, versus the $26.51 billion estimate. The stock was down 1.15% to $245.98 in Thursday’s extended trading.