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ADBE US S&P 500NASDAQ-100Russell 1000 Earnings call

Adobe Inc. (ADBE) · Q3 2026 results and valuation

Share price: $237.60 · 2026-11-11

Adobe Inc. provides software and platforms for content creation, production, and marketing. The company serves business professionals, consumers, and creative and marketing professionals through tools for document management, digital experience orchestration, and media production. Source: 10-K annual report (2026-01-15)

Results Q3 2026 vs Q2 2026 · previous quarter · published 10 Sep 2026 and 11 Jun 2026

Net income up 6.7% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.

1 · Numbers

+6.7%

Net income vs Q2 2026

Net income 1.83B vs 1.71B

Revenue +2.1%

Why Against the same quarter last year (+3.1%), revenue rose because of robust credit consumption and growth in subscription revenue for business professionals and consumers, while net income grew more modestly as the company repurchased approximately 9.5 million shares of its stock.

2 · How management spoke

Upbeat

More upbeat than 76% of company calls

Answers to analysts: typical, in line with the script.

Last call it was different: the answers were more upbeat than the script.

3 · What stood out

Adobe's AI first ending ARR exceeded $650 million and grew more than 150% year-over-year as the company capitalizes on AI opportunities across creativity and productivity.

Valuation

Is Adobe Inc. undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-11-28), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 10.5% growth a year (3-year revenue growth), the model's fair value is $625.89 a share — the stock trades 62% below it. Today's price assumes −3.0% growth a year.

Current price

$237.60

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

-3.0% for 10 yrs

Fair value / share

$625.89

Buy below

$469.42

Price vs fair value

Undervalued 62%

Price vs buy-below price

Undervalued 49%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Figure

    Adobe reported third-quarter revenue of $6.76 billion, which represents 12% year-over-year growth.

    Source quote
    “Adobe reported a strong third quarter achieving $6.76 billion in revenue, representing 12% year over year growth.”
  2. Figure

    Subscription revenue for business professionals and consumers reached $1.91 billion, growing 15% year over year.

    Source quote
    “Subscription revenue for business professionals and consumers was $1.91 billion, growing 15% year over year.”
  3. Figure

    Adobe's AI first ending ARR exceeded $650 million and grew more than 150% year over year as the company begins to capitalize on AI opportunities across creativity and productivity.

    Source quote
    “We are just beginning to capitalize on the massive AI opportunity across creativity, productivity, and customer experiences, with AI first ending ARR. Now exceeding $650 million and growing >150% year over year.”
  4. Figure

    Creative freemium monthly active users surpassed 100 million and grew more than 70% year-over-year, indicating growth in the creator and creative professional user base.

    Source quote
    “Additional creators and creative professionals highlights include creative freemium MAU now surpassing 100 million and growing >70% year-over-year.”
  5. Figure

    Adobe reported that ARR growth for AEM and Agentic web apps, Adobe Gen Studio, and AEP and apps each exceeded 20% year over year.

    Source quote
    “Ending ARR growth of over 20% year over year for each of AEM and Agentic web apps, Adobe Gen Studio, and AEP and apps.”
4 more
  1. Figure

    Adobe repurchased approximately 9.5 million shares of its stock during the quarter.

    Source quote
    “And repurchasing approximately 9.5 million shares of our stock during the quarter.”
  2. Figure

    FIREFLY ending ARR across Firefly apps and Firefly credit packs grew 40% quarter over quarter, indicating growth in the company's Firefly product segment.

    Source quote
    “FIREFLY ending ARR across Firefly apps and Firefly credit packs grew 40% quarter over quarter.”
  3. Key theme

    Adobe doubled the number of paying customers compared to the previous quarter, which will increase brand visibility quarter over quarter.

    Source quote
    “In fact, as, Steven pointed out, doubled the number of paying customers, and that will be brand visibility quarter over quarter.”
  4. Key theme

    Adobe announced an agreement to acquire Topaz Labs to add state of the art AI enhancement models to Firefly services and the Creative Cloud app.

    Source quote
    “We announced our agreement to acquire Topaz Labs, which adds state of the art AI enhancement models in Adobe Firefly services, and Creative Cloud app.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Upbeat (was cautious)
Answers to analysts Typical (was very upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“It has enabled us to build industry leading platforms and products in the areas of creativity, productivity, and customer experience setting a high bar for innovation, and category transformation.”
“As an experienced transformation leader with strong values, integrity, deep knowledge of our business, and passion for products to solve customer needs, Anil is the right person to chart Adobe's...”
“In Q3, Adobe achieved record revenue of 6.76 billion growing 13% year over year as reported and 12% in constant currency.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-08-28)

Metric Q3 2026period end 2026-08-28 Q2 2026period end 2026-05-29 Change Q3 2025 YoY
Revenue 6.76B 6.62B +2.1% 5.99B +12.9%
Gross profit 6.00B 5.90B +1.6% 5.35B +12.2%
Operating income 2.35B 2.24B +5.2% 2.17B +8.3%
Net income 1.83B 1.71B +6.7% 1.77B +3.1%
EPS 4.62 4.25 +8.7% 4.18 +10.5%
P/E today 13.4 16.3 14.8 +1.5 22.2 −5.9

Topics

Most discussed now

  • Over the decades, Adobe's evolving mission from changing the world through digital experiences to now empowering everyone to create has...
  • Fading With AI, Adobe uniquely empowers enterprises to deliver and orchestrate personalized customer experiences.
  • It has enabled us to build industry leading platforms and products in the areas of creativity, productivity, and customer experience...
  • Across the industry, I do believe that every SaaS company will be going through the transformation to a agentic...
  • Absolutely singular focus and align the company

Faded since Q2 2026

  • Fading Strong revenue growth was driven by subscription bookings to revenue conversion.
  • Fading At Adobe, Adobe continues to be driven by its mission to empower everyone to create and deliver innovative products to...
  • Fading What Adobe has done is it has taken all of its, core capabilities in its, creative flagship applications as...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

  • Results of operations · SEC 8-K

    Adobe reported revenue of $6.76 billion for the third quarter of fiscal year 2026, representing a 13% increase compared to the previous year.

  • Director or officer change; Regulation FD disclosure · SEC 8-K

    Adobe announced that Anil Chakravarthy will become President and CEO, while Shantanu Narayen will transition to Executive Chair, effective December 1, 2026.

  • Director or officer change · SEC 8-K

    Adobe Inc. approved a retention letter for Louise Pentland providing severance benefits including 12 months of base salary and 100% of the target annual bonus in the event of termination without Cause.

  • Results of operations; Director or officer change · SEC 8-K

    Adobe reported revenue of $6.62 billion for the second quarter of fiscal year 2026, representing a 13% increase compared to the previous year.

  • Director or officer change; Shareholder vote results; Other events · SEC 8-K

    Adobe announced a new stock repurchase program authorizing the company to buy back up to $25 billion in common stock through April 30, 2030.

  • Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K

    Adobe reported revenue of $6.40 billion, up 12% year-over-year, with subscription revenue increasing 13% and operating cash flows reaching $2.96 billion for the first quarter of fiscal year 2026.

  • Director or officer change · SEC 8-K

    Adobe approved the 2026 Performance Share Program for executive management, featuring two 50% weighted goals based on relative total stockholder return and Net New Sales over the 2026-2028 period.

  • Results of operations · SEC 8-K

    Adobe reported FY2025 revenue of $23.77 billion, an 11% increase year-over-year, and achieved record operating cash flows of over $10 billion during the fiscal year.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-18.

Cash & runway

Cash & equivalents

$4.36B

2026-08-28

Short-term investments

$1.28B

total $5.64B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -6.7% YoY, -1.8% QoQ.

QuarterShares
Q1 2025436.2M
Q2 2025428.2M
Q3 2025423.5M
Q1 2026410.2M
Q2 2026402.4M
Q3 2026395.0M

Shares outstanding: 389.2M (2026-09-18)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 64 filings; 50 filings parsed.

Sold by insiders

204.2K shares

$50.7M · 19 transactions

Bought by insiders

10.0K shares

$1.9M · 1 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

  1. December 1st

    Anil S. Chakravarthy becoming Adobe's next president and chief executive officer and joining the board of directors

    Source quote
    “I am delighted that Anil S. Chakravarthy will become Adobe's next president and chief executive officer and join the board of directors. Effective December 1st.”
  2. Q4 FY 26

    target Total Adobe revenue of $6.8 billion to $6.85 billion

    Source quote
    “For Q4 FY 26, we are targeting Total Adobe revenue of $6.8 billion to $6.85 billion”
  3. Q4 FY 26

    target Business professionals and consumer subscription revenue of $1.93 billion to $1.95 billion

    Source quote
    “Business professionals and consumer subscription revenue of $1.93 billion to $1.95 billion”
  4. Q4 FY 26

    target Creative and Marketing Professional subscription revenue of $4.665 billion to $4.695 billion

    Source quote
    “Creative and Marketing Professional subscription revenue of $4.665 billion to $4.695 billion”
  5. Q4 FY 26

    target GAAP EPS of $4.65 to $4.70 and non GAAP EPS of $6.30 to $6.35

    Source quote
    “GAAP EPS of $4.65 to $4.70 and non GAAP EPS of $6.30 to $6.35”

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