Adobe revenue rises 13%, but shares fall after earnings report
According to MarketWatch, Adobe reported revenue of $6.76 billion for the August quarter of 2026. This is 13% more than a year earlier and only slightly exceeded the FactSet consensus forecast of $6.69 billion.
The company's adjusted earnings per share were $6.13, while analysts surveyed by FactSet expected $6.08. Despite beating forecasts for revenue and earnings, Adobe shares fell by more than 2% in after-hours trading on Thursday.
Investor assessment
Adobe is trying to convince Wall Street of its competitiveness in the era of artificial intelligence. The company offers its own AI solutions, while also competing with developers of free or low-cost creative tools.
Rebecca Wettemann, a lead analyst at technology research company Valoir, assessed the results as generally meeting investor expectations. In her view, under current conditions it is not enough for companies merely to meet expectations: they must exceed them and build a compelling narrative for the market.
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AI metrics and outlook
Adobe said its annual recurring revenue from products the company classifies as AI-first grew 150% year over year. The company also said it has more than 1 billion monthly active users across its creativity and productivity products.
For the November quarter, Adobe forecasts total revenue of between $6.8 billion and $6.85 billion and adjusted earnings per share of between $6.30 and $6.35. FactSet analysts expected revenue of $6.841 billion and earnings per share of $6.31.
The report was released amid a leadership change. Chief Executive Officer Shantanu Narayen is set to leave the role in early December, and the company has appointed Anil Chakravarthy, head of the Customer Experience Orchestration business, as his successor. Adobe is also seeking a permanent chief financial officer.
