Adobe 2026 Fiscal Year Q1 Revenue Hits Record $6.4 Billion: AI Business Becomes Core Growth Engine

IT House, March 13 — Adobe today announced its fiscal first quarter financial results for fiscal year 2026, ending February 27, 2026. Driven by strong AI advancements, the company’s core subscription business and key financial metrics reached new highs for the same period in history.

The earnings report shows that Adobe achieved $6.4 billion in revenue in the first quarter (IT House note: approximately 44.04 billion RMB at current exchange rates), a 12% year-over-year increase (11% growth at fixed exchange rates), setting a record for first-quarter revenue.

Among them, subscription revenue reached $6.17 billion (approximately 42.458 billion RMB at current exchange rates), a 13% year-over-year increase (12% growth at fixed exchange rates). On a non-GAAP basis, diluted earnings per share were $6.06. As of the end of this quarter, the company’s annual recurring revenue (ARR) totaled $26.06 billion (approximately 179.327 billion RMB at current exchange rates).

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Adobe Chairman and CEO Shantanu Narayen stated, “Adobe’s first-quarter performance was record-breaking, with AI-first related ARR more than doubling year-over-year, and subscription revenue growing 13%. In the AI era, all experiences are content-driven, and our mission to ‘empower everyone to create’ becomes even more important.”

Adobe Executive Vice President and CFO Dan Durn added, “This quarter, subscription revenue grew 13%, and operating cash flow reached a record $2.96 billion. As we accelerate deployment of AI-powered capabilities in creative, productivity, and customer experience orchestration, Adobe is well-positioned for sustained profitable growth.”

Looking at specific business segments, Adobe’s subscription revenue for professional and consumer markets was $1.78 billion, a 16% year-over-year increase (15% growth at fixed exchange rates); for creative and marketing professionals, subscription revenue was $4.39 billion, a 12% increase (11% at fixed exchange rates).

In terms of profitability and cash flow, the company demonstrated strong health. Under U.S. GAAP, Adobe’s first-quarter operating income was $2.42 billion, with net income of $1.89 billion. Operating cash flow reached a record $2.96 billion. As of the end of the quarter, remaining performance obligations (RPO) totaled $22.22 billion, with current remaining performance obligations (cRPO) accounting for 67%. During this quarter, Adobe also repurchased approximately 8.1 million common shares.

For the future, Adobe expects total revenue in the second quarter to be between $6.43 billion and $6.48 billion. Among them, revenue from professional and consumer subscriptions is expected to be between $1.80 billion and $1.82 billion; creative and marketing professional subscriptions are expected to generate between $4.41 billion and $4.44 billion. On a non-GAAP basis, earnings per share are projected to be between $5.80 and $5.85.

The company also reaffirmed its previously announced full-year targets for fiscal year 2026. It should be noted that these targets are based on current macroeconomic expectations and do not include potential contributions from the pending acquisition of Semrush Holdings, which still requires regulatory approval and other customary closing conditions.

Along with its strong earnings, Adobe also announced a major personnel change. After serving as CEO for eighteen years, Shantanu Narayen has decided to step down after appointing a successor. Post-resignation, Narayen will continue to serve as Chairman of the Board. To ensure a smooth transition, the board has appointed independent director Frank Calderoni as Chair of a special committee responsible for overseeing the selection process, which will consider both internal and external candidates.