Key facts
- Adobe raised its fiscal 2026 revenue forecast to $26.5-$26.6 billion and adjusted EPS to $24.35-$24.45.
- Second-quarter revenue was $6.62 billion, surpassing analyst estimates.
- AI-first annual recurring revenue exceeded $500 million.
- CFO Dan Durn is departing Adobe to become CFO of Marvell Technology.
- Steve Day has been appointed interim CFO at Adobe.
- Adobe shares declined 5% in extended trading.
Adobe raised its annual revenue and profit forecasts for fiscal year 2026, projecting revenue between $26.5 billion and $26.6 billion, an increase from its previous outlook of $25.9 billion to $26.1 billion. Adjusted earnings per share are now expected to be between $24.35 and $24.45, up from $23.30 to $23.50.
The company's second-quarter revenue reached $6.62 billion, surpassing the $6.46 billion estimated by analysts. Adobe also reported that its AI-first annual recurring revenue has exceeded $500 million at the end of the second quarter, reflecting growing demand for its AI products and subscription spending.
However, the positive financial outlook was overshadowed by the announcement of CFO Dan Durn's departure, effective June 15. Steve Day, senior vice president of corporate finance, will serve as interim CFO. Durn's exit has raised concerns about Adobe's strategic direction in a competitive market. Adobe shares fell 5% in extended trading, contributing to a year-to-date decline of over 37%. Durn is set to become the new CFO of custom AI chip maker Marvell Technology, succeeding Willem Meintjes who will remain in an advisory role until April 2027.