Adobe reported record financial results for the first quarter of fiscal year 2026, highlighting strong subscription growth and surging demand for its AI-powered creative and productivity platforms.
The company, headquartered in San Jose and traded on Nasdaq under the ticker ADBE, said revenue reached $6.40 billion for the quarter ending February 27, marking a 12 percent year-over-year increase, or 11 percent growth in constant currency.
“Adobe delivered record Q1 results with AI-first ARR more than tripling year over year and subscription revenue growing 13 percent. Our mission to empower everyone to create represents an even larger opportunity as content powers all experiences in the AI era.”
Shantanu Narayen, chair and CEO, Adobe
Adobe reported diluted earnings per share of $4.60 on a GAAP basis and $6.06 on a non-GAAP basis. Annualized Recurring Revenue (ARR) exited the quarter at $26.06 billion, underscoring the strength of Adobe’s subscription-driven business model as demand continues to expand across its creative, marketing, and productivity ecosystems.
Dan Durn, executive vice president and CFO, Adobe had this to say:
“Adobe delivered 13 percent subscription revenue growth and record Q1 cash flow of $2.96 billion. As we accelerate AI-powered capabilities across creativity, productivity and customer experience orchestration, Adobe is well positioned for continued profitable growth.”
Operating performance also remained strong. GAAP operating income reached $2.42 billion during the quarter, while non-GAAP operating income totaled $3.04 billion. GAAP net income came in at $1.89 billion, compared with $2.49 billion on a non-GAAP basis. The company also generated record cash flow from operations of $2.96 billion and ended the quarter with Remaining Performance Obligations of $22.22 billion, with current RPO accounting for 67 percent.
Subscription growth was led by Adobe’s Customer Group business, which generated $6.17 billion in subscription revenue, up 13 percent year over year. Business Professionals and Consumers contributed $1.78 billion in subscription revenue, growing 16 percent, while Creative and Marketing Professionals delivered $4.39 billion, representing 12 percent growth.
During the quarter, Adobe also repurchased approximately 8.1 million shares and said its financial outlook assumes current macroeconomic conditions while excluding any potential contribution from its pending acquisition of Semrush Holdings, which remains subject to regulatory approvals and customary closing conditions.
