Adobe Inc ( ADBE ) reported financial results for the first quarter of fiscal 2026 after the market close on Thursday. Here’s a look at the key details from the print.

Adobe shares are trending after earnings. Where is ADBE stock headed?

Adobe Beats Estimates On Top and Bottom Lines

Adobe reported first-quarter revenue of $6.40 billion, beating analyst estimates of $6.28 billion, according to Benzinga Pro. The company reported adjusted earnings of $6.06 per share for the quarter, beating estimates of $5.87 per share.

Total revenue was up 12% year-over-year as total customer group subscription revenue increased 13% year-over-year to $6.17 billion.

Adobe reported $26.06 billion in total annualized recurring revenue (ARR) and said AI-first ARR more than tripled on a year-over-year basis.

Adobe had $22.22 billion of remaining performance obligations at quarter’s end. The company ended the period with $6.33 billion in cash and cash equivalents.

“As we accelerate AI-powered capabilities across creativity, productivity and customer experience orchestration, Adobe is well positioned for continued profitable growth,” said Dan Durn, executive vice president and CFO of Adobe.

The weakness in shares after hours appears to be due to a planned CEO transition. Adobe announced in its earnings release that CEO Shantanu Narayen has decided to transition from his CEO role after a successor has been appointed. Narayen will remain in his role as chair of the board.

What’s Next For Adobe?

Adobe expects second-quarter revenue of $6.43 billion to $6.48 billion versus estimates of $6.43 billion. The company anticipates second-quarter adjusted earnings of $5.80 to $5.85 per share versus estimates of $5.68 per share.

Adobe affirmed its full-year revenue guidance of $25.90 billion to $26.10 billion versus estimates of $26.03 billion. The company also affirmed its full-year adjusted earnings guidance of $23.30 to $23.50 per share versus estimates of $23.50 per share.

Adobe executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.

ADBE Shares Fall After Hours

ADBE Price Action: Adobe shares were down 6.22% in after-hours Thursday, trading at $253 at the time of publication, according to Benzinga Pro.

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