Adobe Inc. (ADBE) reported a 16% year-over-year increase in subscription revenues from its Business Professionals and Consumers (BPC) segment, totaling $1.78 billion for Q1 of fiscal 2026. This growth outpaces the company’s overall growth rate of approximately 11-12%, reflecting the impact of AI innovations and an expanding user base.
Monthly active users for Adobe’s Acrobat and Express product family surged 17% year-over-year, surpassing 850 million users at the end of Q1. Looking forward, Adobe anticipates BPC subscription revenues between $1.80 billion and $1.82 billion for Q2 of fiscal 2026, alongside expectations for Creative and Marketing Professionals subscription revenues ranging from $4.41 billion to $4.44 billion.
However, Adobe’s AI business remains small compared to competitors like Microsoft and Alphabet, with its remaining performance obligations (RPO) at $22.22 billion compared to Microsoft’s $625 billion. Year to date, Adobe’s share price has declined 30.5%, in contrast to the 5% loss observed in the broader Zacks Computer and Technology sector.
