Why It May Finally Be Time to Buy Adobe Stock

Adobe (NASDAQ:ADBE) delivered another record quarter last Thursday. Revenue for the fiscal third quarter of 2026, which ended Aug. 28, climbed 13% year over year to $6.76 billion, adjusted earnings grew even faster, and management raised its full-year revenue and earnings targets.

The stock dipped anyway before recovering, trading at about $252 as of this writing -- roughly a third below its 52-week high.

I think the market is watching the wrong number. The most important figure in the report was $27.50 billion. That number is Adobe's total annualized recurring revenue (ARR), a running yearly total of the subscription money customers already pay the company.

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