Revenue $6.40 billion, rising 12% as reported and 11% in constant currency; record for fiscal Q1 performance. GAAP EPS $4.60, growing 11% year over year; Non-GAAP EPS $6.06, growing 19% year over year, both outpacing revenue growth. Operating margins GAAP operating margin of 37.8% and non-GAAP operating margin of 47.4% reported for the quarter.
On Thursday, Adobe announced the results of its first quarter for fiscal 2026. And for all intents and purposes, the results were of the caliber that would normally make investors happy: Total revenue of $6.4 billion (up 12% year-over-year), Diluted earnings per share (EPS) of $6.06 adjusted, Total annualized recurring revenue (ARR) of $26.06 billion.
In Premiere, the company's video-editing software, it has unveiled a new AI-powered Object Mask feature that lets you easily pick and track persons or objects moving through your video clips. You simply have to hover over that object and click to generate a mask overlay in seconds. While the mask is supposed to be accurate from the start, you can adjust and resize it as needed. Adobe says the feature uses its own AI model for the feature and that the processing happens on-device.
Adobe has improved the tools for Generative Fill, Generative Expand and Remove that are powered by its Firefly generative AI platform. Using these tools for image editing should now produce results in 2K resolution with fewer artifacts and increased detail all while delivering better matches for the provided prompts.
"Our mission is to protect the soul of the work as tools evolve," said Justin Hackney, Wonder Studios CCO and co-founder, in an Adobe blog post. "Partnering with Adobe removes the friction between imagination and execution, allowing creators to enter true flow states. This unlocks new visual languages and stronger emotional bridges, driving what has the potential to become the most transformative era in creative history."