Adobe Q3 Earnings Report Falls Short of Market Expectations

Adobe reported Q3 2026 revenue of $6.76 billion, up 12.9% YoY, and raised full-year 2026 EPS and revenue projections. However, the strong headline numbers were partly due to the Semrush acquisition, which added $480 million in ending ARR. If excluding the M&A-aided portion, the growth rate was in the single digits, not 11.2%. The stock still fell nearly 10% after hours despite the strong results, leaving investors cautious ahead of the final fiscal quarter.