Adobe set to report earnings today with AI tools performance in the spotlight

Adobe reports its fiscal Q3 2026 earnings after the bell today, and Wall Street is expecting revenue of roughly $6.69B and non-GAAP earnings per share of about $6.08. Adobe’s own guidance brackets those numbers neatly: revenue between $6.67B and $6.72B, with EPS in the $6.05 to $6.10 range.

The AI revenue engine

Adobe’s AI-first Annual Recurring Revenue crossed $500M in Q2, more than tripling from the prior year. Firefly, Adobe’s generative AI image and video tool suite, is approaching $300M in ARR on its own.

The company has been embedding AI capabilities across its product stack, from Photoshop’s generative fill to the newer Creative Agent tool. Investors will be parsing the earnings call for any updated AI ARR figures and, critically, for signals about how quickly AI features convert free users into paying subscribers.

Freemium growth and the conversion question

Adobe’s Creative Cloud monthly active users hit approximately 90 million in Q2, a 50% jump year-over-year. Adobe has acknowledged that this freemium push dampens near-term ARR because many of those 90 million users aren’t paying yet.

A CEO change adds a new variable

One week ago, on September 3, Adobe announced that Shantanu Narayen will step into the Executive Chair role while Anil Chakravarthy takes over as President and CEO effective December 1, 2026. Narayen has led Adobe for nearly two decades, steering it through the landmark shift from boxed software to cloud subscriptions. Chakravarthy has been running Adobe’s digital experience business.

Last quarter’s results offered a strong foundation. Adobe posted record revenue of $6.62B, up 13% year-over-year, with non-GAAP EPS of $5.96 that beat analyst estimates.

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