Adobe Inc. (ADBE) dropped its third-quarter fiscal 2026 results after Thursday's closing bell, and the numbers were, by any reasonable measure, good. The company beat estimates on the top and bottom lines. It raised guidance. It announced a milestone that most software companies can only dream about. And yet, the stock slipped. Let's walk through what actually happened.

Adobe Q3 Details

Adobe reported adjusted quarterly earnings of $6.13 per share, which beat the Street estimate of $6.09, according to market data. Quarterly revenue came in at $6.76 billion, which beat the consensus estimate of $6.69 billion by 1%.

Third Quarter FY2026 Customer Group Highlights

• Total Customer Group subscription revenue was $6.56 billion, which represents 14% year-over-year growth.
• Business Professionals & Consumers subscription revenue was $1.91 billion, which represents 16% year-over-year growth.
• Creative & Marketing Professionals subscription revenue was $4.65 billion, which represents 13% year-over-year growth.

Other Quarterly Highlights

• Total Annualized Recurring Revenue (ARR) exiting the quarter was $27.50 billion.
• Non-GAAP operating income was $2.97 billion, and non-GAAP net income was $2.42 billion.
• Record third quarter cash flows from operations were $2.52 billion.
• Exiting the quarter, Remaining Performance Obligations (RPO) were $22.16 billion, and Current Remaining Performance Obligations (cRPO) were 67%.

"Adobe delivered record Q3 results, reflecting the strength of our AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience," said Shantanu Narayen, CEO of Adobe.

"Reaching a landmark of more than one billion monthly active users is a defining moment for Adobe, and I have confidence that Anil will build on this momentum to drive Adobe's next chapter of growth and innovation in the AI era."

Looking Ahead

Adobe is looking for fourth-quarter adjusted EPS of $6.30 to $6.35, versus the $6.32 analyst estimate, and revenue in a range of $6.8 billion to $6.85 billion, versus the $6.84 billion estimate.

Adobe raised its fiscal 2026 adjusted EPS guidance to $24.45-$24.50, versus the $24.36 analyst estimate, and raised its revenue outlook to $26.58 billion-$26.63 billion, versus the $26.51 billion estimate.

ADBE Stock Price: According to market data, Adobe stock was down 1.15% to $245.98 in Thursday's extended trading.