Adobe reported financial results for its first quarter of fiscal 2026 for the quarter ended Feb. 27, 2026.

Adobe (Nasdaq:ADBE), the global technology leader that unleashes creativity and productivity for individuals and businesses through innovative platforms and tools, today reported financial results for its first quarter FY2026 ended Feb. 27, 2026.

"Adobe delivered record Q1 results with AI-first ARR more than tripling year over year and subscription revenue growing 13 percent," said Shantanu Narayen, chair and CEO, Adobe. "Our mission to empower everyone to create represents an even larger opportunity as content powers all experiences in the AI era."

"Adobe delivered 13 percent subscription revenue growth and record Q1 cash flow of $2.96 billion," said Dan Durn, executive vice president and CFO, Adobe. "As we accelerate AI-powered capabilities across creativity, productivity and customer experience orchestration, Adobe is well positioned for continued profitable growth."

First Quarter FY2026 Financial Highlights

Adobe achieved record revenue of $6.40 billion in its first quarter of FY2026, which represents 12% year-over-year growth, or 11% in constant currency. Diluted earnings per share was $4.60 on a GAAP basis and $6.06 on a non-GAAP basis.

Total Adobe Annualized Recurring Revenue ("ARR") exiting the quarter was $26.06 billion.

GAAP operating income in the first quarter was $2.42 billion and non-GAAP operating income was $3.04 billion. GAAP net income was $1.89 billion and non-GAAP net income was $2.49 billion.

Record Q1 cash flows from operations were $2.96 billion.

Exiting the quarter, Remaining Performance Obligations ("RPO") were $22.22 billion, and Current Remaining Performance Obligations ("cRPO") were 67%.

Adobe repurchased approximately 8.1 million shares during the quarter.

First Quarter FY2026 Customer Group Highlights

Total Customer Group subscription revenue was $6.17 billion, which represents 13% year-over-year growth, or 12% in constant currency.

Business Professionals & Consumers subscription revenue was $1.78 billion, which represents 16% year-over-year growth, or 15% in constant currency.

Creative & Marketing Professionals subscription revenue was $4.39 billion, which represents 12% year-over-year growth, or 11% in constant currency.

Financial Targets

These targets factor in expectation for current macroeconomic conditions and do not include contributions from our pending acquisition of Semrush Holdings, Inc., subject to regulatory approvals and other customary closing conditions.

In addition, Adobe is reaffirming previously issued FY2026 targets.

Adobe CEO Announces Decision to Transition

Shantanu Narayen, who has served as CEO of Adobe for eighteen years, has decided to transition from his position as CEO after a successor has been appointed. Narayen will remain as Chair of the Board. The Board of Directors has appointed Frank Calderoni, Lead Independent Director of Adobe, as Chair to the special committee to direct the process that will consider both internal and external candidates.

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