Adobe delivered $6.76 billion in third-quarter revenue, up 12 percent year-over-year in constant currency, and raised its full fiscal year 2026 financial targets after surpassing one billion total monthly active users across all businesses.
The company's creative freemium MAU base—which includes Firefly, Express, and web and mobile versions of Premiere, Photoshop, and Lightroom—exceeded 100 million users, growing 70 percent year-over-year. Adobe.com traffic rose over 40 percent in the same period, signaling the freemium funnel is working: the strategy treats free tiers as acquisition channels for converting users into paid professional subscriptions.
Adobe now projects a non-GAAP operating margin of 45 percent for the full year, with a diluted share count of approximately 400 million. For the fourth quarter, the company expects a 44 percent non-GAAP operating margin and a diluted share count of 389 million.
Chairman and CEO Shantanu Narayen attributed the results to AI innovation and expansion across creativity, productivity, and customer experience. Senior Vice President and interim CFO Steve Day said the company is "deepening engagement with agentic experiences" to drive long-term growth—a nod to Adobe's push into AI-powered workflows.
Yet Adobe's stock declined following the announcement, suggesting investor caution about whether the freemium-to-paid conversion math will hold at scale. The company must prove that 100 million free users generate subscriber growth and margin expansion—not just top-line user counts.
