Key Points
- Adobe crosses 1 billion monthly active users across creativity and productivity tools
- Freemium users exceed 100 million, growing over 70 per cent year on year
- Q3 revenue reaches $6.76 billion with 13 per cent annual growth
Adobe has crossed one billion monthly active users across its creativity and productivity software, a milestone the company disclosed alongside record third-quarter financial results that showed its freemium strategy driving significant user growth.
The San Jose-headquartered company reported that freemium monthly active users, meaning users on free tiers of its software, surpassed 100 million in the quarter ended 28 August 2026, growing more than 70 per cent compared to the same period last year. The company is increasingly using free AI-powered tools to attract users before converting them to paid subscriptions.
Adobe’s third-quarter revenue reached $6.76 billion, representing 13 per cent year-on-year growth or 12 per cent in constant currency terms. The company reported diluted earnings per share of $4.62 under generally accepted accounting principles and $6.13 on a non-GAAP basis.
Freemium expansion
The results shows Adobe’s shift toward a freemium model, where it offers basic versions of its tools for free while charging for advanced features. This approach aims to expand the user base and create pathways to paid subscriptions, particularly as AI features become central to its product offerings.
“Adobe delivered record Q3 results, reflecting the strength of our AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience,” said Shantanu Narayen, chair and chief executive officer, Adobe. “Reaching a landmark of more than one billion monthly active users is a defining moment for Adobe.”
By the numbers
Key figures from this story- 1 billion
- monthly active users across Adobe products
- $6.76 billion
- Q3 FY2026 revenue
- 70%+
- year-on-year freemium user growth
The company’s AI-first annualised recurring revenue, a metric that measures predictable subscription income expected over 12 months, grew more than 150 per cent year on year. Steve Day, senior vice president and interim chief financial officer, said the company was “expanding our user base through a freemium strategy and deepening engagement with agentic experiences.”
Total annualised recurring revenue exiting the quarter stood at $27.50 billion. The company generated operating cash flows of $2.52 billion during the quarter, which it described as a record for a third quarter.
Subscription revenue
Subscription revenue from Adobe’s customer groups showed consistent growth. Total customer group subscription revenue reached $6.56 billion, up 14 per cent year on year. Within this, the business professionals and consumers segment contributed $1.91 billion, growing 16 per cent, while creative and marketing professionals generated $4.65 billion, up 13 per cent.
Adobe’s remaining performance obligations, which represent contracted revenue not yet recognised, stood at $22.16 billion. Of this, 67 per cent was classified as current remaining performance obligations, meaning it is expected to be recognised as revenue within the next 12 months.
The company repurchased approximately 9.5 million shares during the quarter as part of its capital return programme.
Adobe outlook
Adobe raised its full-year revenue and earnings targets. For the fourth quarter of fiscal 2026, the company projected total revenue between $6.80 billion and $6.85 billion. For the full fiscal year, it forecast revenue between $26.576 billion and $26.626 billion.
The company expects total annualised recurring revenue to grow 10.2 per cent year on year by the end of fiscal 2026. Full-year non-GAAP earnings per share are projected between $24.45 and $24.50.
Narayen said Anil Bhansali, who is set to take over leadership responsibilities, would “build on this momentum to drive Adobe’s next chapter of growth and innovation in the AI era.”
Your Questions, Answered
How many monthly active users does Adobe have?
Adobe has crossed one billion monthly active users across its creativity and productivity software, a milestone disclosed in its Q3 FY2026 results.
What is Adobe's freemium user growth?
Adobe's freemium monthly active users exceeded 100 million in Q3 FY2026, growing more than 70 per cent compared to the same period last year.
What was Adobe's Q3 2026 revenue?
Adobe reported record Q3 revenue of $6.76 billion, representing 13 per cent year-on-year growth or 12 per cent in constant currency terms.
What is Adobe's AI-first ARR growth?
Adobe's AI-first annualised recurring revenue grew more than 150 per cent year on year, reflecting the company's focus on AI-powered features across its products.
