What Key Metrics Have to Say
For the quarter ended August 2026, Adobe Systems (ADBE) reported revenue of $6.76 billion, up 12.9% over the same period last year. EPS came in at $6.13, compared to $5.31 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $6.69 billion, representing a surprise of +1.02%. The company delivered an EPS surprise of +0.82%, with the consensus EPS estimate being $6.08.
While investors closely watch year-over-year changes in headline numbers — revenue and earnings — and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company’s underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock’s price performance.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
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Total Adobe Annualized Recurring Revenue (ARR): $27.5 billion compared to the $27.49 billion average estimate based on two analysts.
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Subscription revenue- Total customer group subscription revenue- Business Professionals & Consumers: $1.91 billion compared to the $1.88 billion average estimate based on five analysts.
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Subscription revenue- Total customer group subscription revenue: $6.56 billion versus the five-analyst average estimate of $6.5 billion.
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Subscription revenue- Total customer group subscription revenue- Creative & Marketing Professionals: $4.65 billion compared to the $4.62 billion average estimate based on five analysts.
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Revenue- Services and other: $111 million compared to the $126.73 million average estimate based on five analysts. The reported number represents a change of -14% year over year.
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Revenue- Products: $67 million compared to the $59.14 million average estimate based on four analysts. The reported number represents a change of -1.5% year over year.
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Revenue- Subscription: $6.58 billion versus the four-analyst average estimate of $6.51 billion. The reported number represents a year-over-year change of +13.7%.
View all Key Company Metrics for Adobe here>>>
Shares of Adobe have returned -1.5% over the past month versus the Zacks S&P 500 composite’s -1.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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This article originally published on Zacks Investment Research (zacks.com).
