Adobe Reports Double-Digit Growth, Reaffirms 2026 Outlook as CEO Shantanu Narayen Sets Exit

Overview

• Fiscal Q1 2026 revenue rose 12% to $6.4 billion, ARR increased 11% to $26.06 billion, and adjusted EPS grew 19% to $6.06 with record operating cash flow of $2.96 billion.
• AI ARR more than tripled as Firefly generative credit consumption climbed 45% quarter over quarter, led by video and audio use.
• Management reaffirmed full-year guidance, calling for total ARR to grow just over 10% in 2026.
• Longtime chief executive Shantanu Narayen plans to step down in the coming months, setting up a leadership transition.
• The stock‑photo segment declined faster than expected, and shares remain down more than 25% year to date and over 40% in five years as skepticism lingers.