Adobe Fiscal Year 2026 Q1 Revenue Reaches $6.4 Billion, Setting a New Record: AI Business Becomes the Core Growth Engine

Tech Home March 13 News, Adobe announced today its financial report for the first quarter of fiscal year 2026, ending February 27, 2026. Driven by strong AI growth, the company’s core subscription business and key financial indicators reached new highs for the same period in history.

The financial report shows that Adobe achieved revenue of $6.4 billion in the first quarter (Note from Tech Home: 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 42.46B RMB at current exchange rates), a 13% year-over-year increase (12% growth at fixed exchange rates). Under non-GAAP, 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 179.33B RMB at current exchange rates).

Image source: Pexels Adobe Chairman and CEO Shantanu Narayen said, “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’ has become even more important.”

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

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

In terms of profitability and cash flow, the company demonstrated strong health. According to U.S. GAAP, Adobe’s operating income for the first quarter was $2.42 billion, with net profit 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.

Looking ahead, Adobe expects total revenue for the second quarter to be between $6.43 billion and $6.48 billion. Among them, subscription revenue for business professionals and consumers is expected to be between $1.80 billion and $1.82 billion; subscription revenue for creative and marketing professionals is expected to be between $4.41 billion and $4.44 billion. Under non-GAAP, earnings per share are expected to be between $5.80 and $5.85.

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

While announcing strong results, Adobe also revealed a major personnel change. After 18 years as CEO, Shantanu Narayen has decided to resign after appointing a successor. After stepping down, Narayen will continue to serve as Chairman of the Board. To ensure a smooth transition, the board has appointed independent director Frank Calderoni as Chairman of the Special Committee, responsible for guiding the selection process, which will consider both internal and external candidates.