Adobe beats on Q3 revenue and EPS but guides Q4 to the low end, and names a new CEO

SentiSense · Published Sep 10, 2026, 1:16 PM ET · Updated Sep 28, 2026, 2:45 AM ET

Adobe reported third-quarter revenue of $6.76 billion, up 13% year over year, and non-GAAP earnings per share of $6.13, both ahead of consensus. Fourth-quarter revenue guidance of $6.80 billion to $6.85 billion brackets the Street's $6.85 billion estimate from below, and the company said Anil Chakravarthy will become chief executive with Shantanu Narayen moving to executive chair on December 1.

ADBE delivered a clean quarter and a guide the market did not love. Third-quarter revenue came in at $6.76 billion, up 13% year over year, with non-GAAP earnings per share of $6.13, ahead of Street estimates in the $6.07 to $6.09 range. Total annualized recurring revenue reached $27.50 billion. Shares fell in the range of roughly 1% to 3% depending on the session measured, with after-hours, post-market and premarket quotes all landing inside that band.

The friction is in the forward numbers rather than the printed ones. Adobe guided fourth-quarter revenue to $6.80 billion to $6.85 billion, a midpoint of $6.825 billion against a consensus near $6.85 billion, and fourth-quarter EPS to $6.30 to $6.35, in line with expectations. Full-year fiscal 2026 guidance was raised to revenue of $26.576 billion to $26.626 billion and EPS of $24.45 to $24.50. A raised full year paired with a fourth quarter that tops out at consensus is the combination that reads as caution.

The AI disclosure is the number bulls point to, and it needs to be read at the right level. Adobe said AI-first annualized recurring revenue passed $650 million, up about 150% year over year, which is a company-wide figure. Separately and at the product level, Acrobat AI Assistant paid monthly active users grew roughly 150% and Acrobat AI ARR tripled. Those are different measurements and should not be added together or treated as the same disclosure.

Two governance and sentiment items round out the picture. Adobe named Anil Chakravarthy chief executive, with Shantanu Narayen becoming executive chair effective December 1. On the sell side, Morgan Stanley carries an Underweight rating with a $240 price target, while Zacks assigns the stock a Rank #4, which is a quantitative screen output rather than a Wall Street analyst rating. What to watch into the next print is whether AI-first ARR keeps compounding fast enough to offset a fourth quarter guided to the top of consensus rather than through it.