TLDR
- Adobe stock drops despite record Q2 revenue and stronger AI demand.
- ADBE falls after hours even as Adobe lifts its FY2026 outlook.
- Adobe reports $6.62B revenue, but shares extend post-close losses.
- CFO exit adds pressure as Adobe posts growth across subscriptions.
- Adobe raises guidance, yet stock slides before its earnings call.
Adobe (ADBE) shares weakened sharply even after the company posted record quarterly revenue and raised its full-year outlook. Adobe (ADBE) closed down 6.25% at $218.80, then fell 5.24% after hours to $207.33. The selloff came before its Q2 2026 earnings call and followed new details on revenue, AI demand, guidance, and CFO succession.
Adobe reports record revenue as AI demand supports growth
Adobe reported revenue of $6.62 billion for the second quarter of fiscal 2026. The company said revenue rose 13% year over year, or 11% in constant currency. The result marked a record quarter for the software group.
The company linked the performance to demand across its customer groups. It also pointed to AI-driven usage across creativity, productivity, and marketing products. However, the stock reaction showed pressure despite the stronger top-line result.
Adobe reported GAAP diluted earnings per share of $4.25. Non-GAAP earnings per share reached $5.96 during the quarter. GAAP earnings included a $0.17 per-share goodwill impairment charge tied to Publishing and Advertising.
Subscription revenue and ARR remain key drivers
Adobe’s total customer group subscription revenue reached $6.39 billion. That figure rose 14% year over year, or 12% in constant currency. It also included about $40 million from Semrush.
Business Professionals and Consumers subscription revenue rose to $1.85 billion. The segment grew 16% year over year, or 15% in constant currency. Creative and Marketing Professionals subscription revenue reached $4.54 billion.
Total Adobe annualized recurring revenue exited the quarter at $27.10 billion. That amount included about $480 million from Semrush. Adobe also ended the quarter with $22.27 billion in remaining performance obligations.
Adobe raises guidance as CFO transition adds focus
Adobe issued third-quarter revenue targets between $6.67 billion and $6.72 billion. It also guided for non-GAAP earnings per share between $6.05 and $6.10. The targets include Semrush and assume current macroeconomic conditions.
For fiscal 2026, Adobe lifted its revenue target to between $26.50 billion and $26.60 billion. The company also projected non-GAAP earnings per share between $24.35 and $24.45. It expects total ending ARR to grow 10.2% year over year.
Adobe also announced a leadership change in its finance office. CFO Dan Durn will leave the company on June 15, 2026, for another professional opportunity. Steve Day, a longtime Adobe finance executive, will serve as interim CFO from the same date.
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