Adobe (NASDAQ:ADBE) shares rose 2.2% in pre-market trading as investors continued to assess the software company’s fiscal third-quarter 2026 results and updated full-year guidance.
Adobe reported record quarterly revenue and earnings above consensus estimates. The company also raised its forecasts for full-year revenue and adjusted earnings per share.
The shares remained below their 52-week high of $370.86 following a decline after the earnings announcement.
Annualised Recurring Revenue Reaches $27.5 Billion
Adobe reported total annualised recurring revenue of $27.5 billion, representing year-on-year growth of more than 11%.
The company also reported growth in annualised recurring revenue associated with its AI-focused products as it continues to integrate generative artificial intelligence capabilities across its Creative Cloud offerings.
Adobe raised its fiscal 2026 revenue forecast to between $26.58 billion and $26.63 billion and also increased its adjusted earnings-per-share guidance.
Analysts Issue Mixed Ratings
Analyst responses following the quarterly results have been mixed.
Morgan Stanley issued a Sell rating, while Citi reduced its price target and Oppenheimer maintained a Hold rating. At least one other firm issued a Buy rating, citing Adobe’s AI-related recurring revenue.
Investors continue to assess the company’s AI-related revenue growth alongside broader trends in its subscription business and overall growth rates.
Adobe Gains as Broader Technology Market Falls
Adobe’s pre-market advance came as major US equity indices traded lower. The Nasdaq declined 1.8%, while the S&P 500 fell 0.8%.
Adobe shares nevertheless moved higher as the market continued to evaluate its quarterly results, higher full-year guidance and recurring revenue figures.
Adobe stock price
