Adobe's Q3 revenue hit a new high, but Q4 guidance was weak. The stock price fell intraday before recovering, and a new CEO was announced.
Adobe reported record third-quarter fiscal year 2026 revenue of $6.76 billion, with AI annual recurring revenue (ARR) growing over 150%, and raised its full-year revenue and adjusted earnings guidance. However, the midpoint of its fourth-quarter revenue guidance fell short of analyst consensus, causing the company's stock to initially drop 3% to $241.52 in early Friday trading before recovering to $248, largely flat. Additionally, the company announced that Anil Chakravarthy will take over as CEO on December 1, while the CFO position remains filled by an interim appointee, exacerbating investor unease over the weak guidance and leadership changes.
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