Adobe Inc.

Strong Q3 results; continued ARR momentum - Revenue $6.76B, up 12% YoY (and 13% YoY as reported per management; 12% constant currency stated). - GAAP EPS $4.62 (+11% YoY); non-GAAP EPS $6.13 (+15% YoY). - Ending ARR $27.5B, up 11.2% YoY. - Total customer subscription revenue (CMP+BP&C) $6.56B, up 14% YoY (and 13% constant currency). - RPO $22.16B exiting the quarter, up 8% YoY; CRPO +9% YoY. - Cash flow strength: operating cash flow $2.52B; repurchased ~9.5M shares in the quarter. - *Investor takeaway:* operational performance and recurring metrics remain healthy, supporting raised guidance.

Guidance for Q4 FY26 (and raised full-year outlook) - Q4 revenue: $6.80B–$6.85B - Q4 subscription revenue: - BP&C: $1.93B–$1.95B - CMP: $4.665B–$4.695B - Q4 EPS: GAAP $4.65–$4.70; non-GAAP $6.30–$6.35 - Q4 profitability assumptions: non-GAAP operating margin ~44%; GAAP tax rate ~2%; non-GAAP tax ~18%. - FY26 targets raised/maintained with specific range: - Full-year revenue: $26.576B–$26.626B - FY26 BP&C subs: $7.47B–$7.49B - FY26 CMP subs: $18.242B–$18.272B - FY26 ending ARR growth: ~10.2% YoY - EPS: GAAP $18.12–$18.17; non-GAAP $24.45–$24.50 - *Investor takeaway:* guidance implies modest sequential growth trends in certain segments, but management emphasized stronger performance year-to-date and “raise across” both customer groups.

Product/market momentum: AI adoption is translating into usage and monetization - BP&C (business pros & consumers): subscription revenue $1.91B (+15% YoY as stated). - Acrobat Plus/Express MAU >900M (+25% YoY). - Acrobat AI assistant MAU doubled QoQ. - Enterprise adoption cited among ETLA customers; notable wins included Amazon, Deutsche Post DHL, Honeywell, T-Mobile, Renault, US DOE Los Alamos. - Creative & marketing professionals (CMP): subscription revenue $4.65B (+12% YoY as stated). - Creative freemium MAU crossed 100M and grew >70% YoY. - Firefly ending ARR across apps + credit packs grew ~40% QoQ. - Enterprise momentum: AEM & Agentic web apps, Gen Studio, AEP & apps each growing >20% YoY; brand visibility solution customer base/paid customers expanded. - *Investor takeaway:* AI is not just marketing—management tied freemium growth → higher AI usage intensity → ARR growth (especially for Firefly).