Adobe triples its AI revenue past 500 million dollars and accepts slower growth for it

Adobe generated record revenue of 6.62 billion dollars in the second quarter of financial year 2026, up 12.7 percent on the year before. Expectations had been 6.45 billion dollars.

Annual recurring revenue from the products for artificial intelligence has tripled and passed 500 million dollars.

Adjusted operating profit came in at 2.95 billion dollars after 2.67 billion a year earlier. The adjusted operating margin fell slightly from 45.5 to around 44.5 percent.

Broken down, subscription revenue from business customers and consumers grew 16 percent to 1.85 billion dollars, and from creative and marketing professionals 13 percent to 4.54 billion dollars.

The short version

• Revenue rose 12.7 percent in the second quarter of financial year 2026 to 6.62 billion dollars, against an expected 6.45 billion.
• Annual recurring revenue from the AI products has tripled and passed 500 million dollars.
• Full year guidance was raised to 26.50 to 26.60 billion dollars, after 25.9 to 26.1 billion previously.

Free access instead of faster revenue

The most interesting decision does not sit in the figures but in the guidance. Adobe has chosen to accelerate the growth in free users and to postpone planned adjustments to the product range for creative programs.

That lowers the expectation for growth in recurring revenue in the second half. For the full year an increase of 10.2 percent is expected there.

A trade off sits behind that. The group accepts slower growth in subscription revenue in the short term in order to bring more people to the products. The assumption is that a broader user base combined with usage based billing of the AI functions produces more in the end than further optimising classic subscriptions.

Whether that works out can be judged at the earliest in a few quarters.

Guidance raised clearly

For the third quarter Adobe expects revenue of 6.67 to 6.72 billion dollars. The analyst consensus had stood at 6.51 billion dollars. Adjusted earnings per share are to reach 6.05 to 6.10 dollars, after 5.96 dollars in the previous quarter.

Full year guidance was raised to 26.50 to 26.60 billion dollars, after 25.9 to 26.1 billion previously. For adjusted earnings per share the expectation rose from 23.30 to 23.50 dollars to 24.35 to 24.45 dollars.

The adjusted operating margin is to run at around 44 percent in the third quarter and about 45 percent in the full year.

The finance chief has left the company

On 15 June 2026 finance chief Dan Durn stepped down. Steve Day, previously responsible for the finances of one business unit, took over on an interim basis and reports directly to chief executive Shantanu Narayen.

Day has worked in senior finance roles at the company for 20 years, which limits the risk of disruption. A permanent successor is being sought.

Analysts stay cautious

Despite the raised guidance the consensus rating is hold.

Four reasons are named. The shift towards free offerings, the uncertainty in the leadership, high spending on artificial intelligence and growing competition from providers whose products are built on such systems from the start.

The last point is the most sensitive for Adobe. The products of the group have grown over decades as tools for professionals. New providers generate images, videos and text from simple prompts and therefore address a broader group.

Chief executive Narayen pointed to strong demand across all customer groups.

The share traded at around 264 dollars in mid August. For comparison, revenue in financial year 2025 still stood at a full year guidance of 23.65 to 23.70 billion dollars. For 2026 around 26.55 billion dollars are now expected.

Frequently asked questions

Why does Adobe accept slower growth

The group has chosen to accelerate the growth in free users and to postpone planned adjustments to the product range. The assumption is that a broader user base combined with usage based billing of the AI functions produces more in the end.

Why do analysts stay at hold

Four reasons are named. The shift towards free offerings, the uncertainty in the leadership, high spending on artificial intelligence and growing competition from providers whose products are built on such systems from the start.

What happened to the finance chief

On 15 June 2026 finance chief Dan Durn stepped down. Steve Day, previously responsible for the finances of one business unit, took over on an interim basis. He has worked in senior finance roles at the company for 20 years, and a permanent successor is being sought.

This analysis is for information only and is not investment advice.