A Business at a Glance
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ADOBE INC.
ADBE
$106.2B
Mkt Cap
$248.83
-2.37%
Adobe is a software company that empowers creative expression, productivity, and personalized customer experiences through an integrated platform spanning ideation, creation, production, and activation across multiple media types and channels. The company serves two primary customer groups—Business Professionals & Consumers and Creative & Marketing Professionals—through subscription-based and freemium business models delivered via desktop, web, and mobile applications. Adobe's value proposition centers on end-to-end, AI-infused solutions that combine its commercially safe Firefly foundation models with partner AI models, agent orchestration capabilities, and first-party data assets to enable customers to create, manage, and optimize content and digital experiences at scale in a secure, compliant environment. The company distributes through direct digital channels, enterprise sales, and an extensive partner ecosystem including integrations with leading AI platforms and global service partners, while generating revenue primarily through recurring subscriptions for flagship applications like Acrobat, Creative Cloud, and Experience Platform, supplemented by consumption-based pricing for generative credits and AI features. Adobe's competitive differentiation derives from its integrated platform architecture that bridges creative production and marketing execution, its proprietary AI capabilities trained on licensed and public domain content, and its ability to embed AI agents and conversational interfaces across applications to reduce friction and expand addressable markets across billions of potential users globally.
【AI-driven customer expansion】 Management is strategically shifting to accelerate freemium customer acquisition and AI-first product adoption to build a larger user base, with the expectation that this foundation-building phase will translate into accelerated ARR growth and monetization in the second half of fiscal 2026 and beyond. The company is embedding AI agents and conversational interfaces across its portfolio to simplify workflows and reduce traditional onboarding barriers, enabling faster customer onboarding and engagement across business professionals, consumers, creators, and marketing professionals. Enterprise demand for content supply chain and customer experience orchestration solutions remains strong, with global customer wins demonstrating continued momentum in the digital experience segment, and management expects this strength to persist as brands increasingly need to manage brand visibility across LLMs, traditional search, and owned channels. Adobe is integrating with leading AI platforms including Anthropic, Google, Microsoft, NVIDIA, and OpenAI to provide customers with choice and flexibility in model selection, positioning the company to benefit from multiple AI ecosystem winners while maintaining its commercially safe, brand-compliant approach to generative AI.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 25.2B | 23.8B | 21.5B | 19.4B | 17.6B | 15.8B |
| Net Income | 7.2B | 7.1B | 5.6B | 5.4B | 4.8B | 4.8B |
| EPS | $17.66 | $16.70 | $12.36 | $11.82 | $10.10 | $10.02 |
| Free Cash Flow | 10.3B | 9.9B | 7.9B | 6.9B |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.1B | 4.8B | 5.9B | 7.3B | 9.0B | 11.2B | 12.9B | 15.8B | 17.6B | 19.4B | 21.5B | 23.8B | 25.2B |
| Gross Margin | 51.2% | 55.8% | 57.9% | 60.1% | 61.0% | 62.0% | 63.8% | 64.8% | 63.5% | 65.3% | 62.5% | 66.0% | 89.4% |
| R&D | 844M | 863M | 976M | 1.2B | 1.5B | 1.9B | 2.2B | 2.5B | 3.0B | 3.5B | 3.9B | 4.3B | 4.5B |
| SG&A | 543M | 533M | 576M | 625M | 745M | 881M | 968M | 1.1B | 1.2B | 1.4B | 1.5B | 1.6B | 1.8B |
| EBIT | 413M | 903M | 1.5B | 2.2B | 2.8B | 3.3B | 4.2B | 5.8B | 6.1B | 6.7B | 6.7B | 8.7B | 9.1B |
| Op. Margin | 10.0% | 18.8% | 25.5% | 29.7% | 31.5% | 29.3% | 32.9% | 36.8% | 34.6% | 34.3% | 31.3% | 36.6% | 36.1% |
| Net Income | 268M | 630M | 1.2B | 1.7B | 2.6B | 3.0B | 5.3B | 4.8B | 4.8B | 5.4B | 5.6B | 7.1B | 7.2B |
| Net Margin | 6.5% | 13.1% | 20.0% | 23.2% | 28.7% | 26.4% | 40.9% | 30.5% | 27.0% | 28.0% | 25.9% | 30.0% | 28.7% |
| Non-Recurring | 20M | 1.6M | 1.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 6.4% | 13.7% | 25.7% | 37.9% | 35.6% | 26.9% | 41.8% | 36.9% | 37.6% | 42.7% | 44.0% | 60.4% | 57.5% |
| ROE | 4.0% | 9.1% | 16.2% | 21.3% | 29.1% | 29.7% | 44.2% | 34.4% | 33.0% | 35.5% | 36.3% | 55.4% | 62.8% |
| ROA | 2.5% | 5.6% | 9.6% | 12.4% | 15.6% | 14.9% | 23.4% | 18.7% | 17.5% | 19.1% | 18.5% | 23.9% | 24.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.3B | 1.5B | 2.2B | 2.9B | 4.0B | 4.4B | 5.7B | 7.2B | 7.8B | 7.3B | 8.1B | 10.0B | 10.5B |
| Free Cash Flow | 1.1B | 1.3B | 2.0B | 2.7B | 3.8B | 4.0B | 5.3B | 6.9B | 7.4B | 6.9B | 7.9B | 9.9B | 10.3B |
| Owner Earnings | 640M | 794M | 1.5B | 2.1B | 3.1B | 2.9B | 4.1B | 5.4B | 5.5B | 4.7B | 5.4B | 7.3B | 7.7B |
| CapEx | 148M | 185M | 204M | 178M | 267M | 395M | 419M | 348M | 442M | 360M | 183M | 179M | 201M |
| Maint. CapEx | 314M | 339M | 332M | 326M | 346M | 757M | 757M | 788M | 856M | 872M | 857M | 818M | 759M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 314M | 339M | 332M | 326M | 346M | 757M | 757M | 788M | 856M | 872M | 857M | 818M | 759M |
| CapEx/OCF | 11.5% | 12.6% | 9.3% | 6.1% | 6.6% | 8.9% | 7.3% | 4.8% | 5.6% | 4.9% | 2.3% | 1.8% | 1.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 600M | 625M | 1.1B | 1.1B | 2.0B | 2.8B | 3.0B | 4.0B | 6.5B | 4.4B | 9.5B | 11.3B | 9.1B |
| Buyback Yield | 1.6% | 1.3% | 2.0% | 1.2% | 1.7% | 1.8% | 1.3% | 1.2% | 4.2% | 1.5% | 4.1% | 8.3% | 9.2% |
| Stock-Based Comp | 334M | 336M | 349M | 454M | 610M | 788M | 909M | 1.1B | 1.4B | 1.7B | 1.8B | 1.9B | 2.0B |
| Debt Repayment | 15M | 602M | 108K | 2.0M | 0 | 0 | 3.1B | 0 | 0 | 500M | 0 | 1.5B | 1.5B |
| Balance Sheet | |||||||||||||
| Net Debt | -2.2B | -2.1B | -2.9B | -3.9B | 896M | -39M | -1.9B | -1.1B | -1.5B | -3.8B | -1.8B | 53M | 1.0B |
| Cash & Equiv. | 1.1B | 877M | 1.0B | 2.3B | 1.6B | 2.6B | 4.5B | 3.8B | 4.2B | 7.1B | 7.6B | 5.4B | 5.6B |
| Long-Term Debt | 911M | 1.9B | 1.9B | 1.9B | 4.1B | 989M | 4.1B | 4.1B | 3.6B | 3.6B | 4.1B | 6.2B | 4.8B |
| Debt/Equity | 0.22 | 0.27 | 0.25 | 0.22 | 0.44 | 0.39 | 0.31 | 0.32 | 0.33 | 0.25 | 0.43 | 0.57 | 0.58 |
| Interest Coverage | 6.9 | 14.1 | 21.2 | 29.1 | 31.9 | 20.8 | 36.5 | 51.3 | 54.4 | 58.8 | 39.9 | 33.1 | 34.8 |
| Equity | 6.8B | 7.0B | 7.4B | 8.5B | 9.4B | 10.5B | 13.3B | 14.8B | 14.1B | 16.5B | 14.1B | 11.6B | 11.5B |
| Total Assets | 10.8B | 11.7B | 12.7B | 14.5B | 18.8B | 20.8B | 24.3B | 27.2B | 27.2B | 29.8B | 30.2B | 29.5B | 29.9B |
| Total Liabilities | 4.0B | 4.7B | 5.3B | 6.1B | 9.4B | 10.2B | 11.0B | 12.4B | 13.1B | 13.3B | 16.1B | 17.9B | 18.4B |
| Intangibles | 470M | 510M | 414M | 386M | 2.1B | 1.7B | 1.4B | 1.8B | 1.4B | 1.1B | 782M | 495M | 1.0B |
| Retained Earnings | 6.9B | 7.3B | 8.1B | 9.6B | 12.3B | 14.8B | 19.6B | 23.9B | 28.3B | 33.3B | 38.5B | 45.4B | 48.8B |
| Working Capital | 2.1B | 2.6B | 3.0B | 3.7B | 556M | -1.7B | 2.6B | 1.7B | 868M | 2.8B | 711M | -37M | -3.0B |
| Current Assets | 4.6B | 4.8B | 5.8B | 7.2B | 4.9B | 6.5B | 8.1B | 8.7B | 9.0B | 11.1B | 11.2B | 10.2B | 9.1B |
| Current Liabilities | 2.5B | 2.2B | 2.8B | 3.5B | 4.3B | 8.2B | 5.5B | 6.9B | 8.1B | 8.3B | 10.5B | 10.2B | 12.1B |
| Per Share Data | |||||||||||||
| EPS | 0.53 | 1.24 | 2.32 | 3.38 | 5.20 | 6.00 | 10.83 | 10.02 | 10.10 | 11.82 | 12.36 | 16.70 | 17.66 |
| Owner EPS | 1.26 | 1.56 | 3.01 | 4.25 | 6.17 | 5.85 | 8.36 | 11.16 | 11.77 | 10.26 | 11.93 | 17.03 | 19.28 |
| Book Value | 13.38 | 13.79 | 14.74 | 16.88 | 18.79 | 21.41 | 27.31 | 30.75 | 29.84 | 35.97 | 31.36 | 27.22 | 28.87 |
| Cash Flow/Share | 2.54 | 2.89 | 4.37 | 5.81 | 8.09 | 8.99 | 11.79 | 15.02 | 16.65 | 15.90 | 17.91 | 23.49 | 20.02 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 506.4M | 507.7M | 503.8M | 501.2M | 498.3M | 491.8M | 485.7M | 481.2M | 470.9M | 459.2M | 449.8M | 426.9M | 399.0M |
| Valuation | |||||||||||||
| P/E Ratio | 139.0 | 74.3 | 45.0 | 54.9 | 47.9 | 51.5 | 44.0 | 66.1 | 32.6 | 52.7 | 41.6 | 19.2 | 14.1 |
| P/FCF | 32.8 | 36.4 | 26.4 | 34.0 | 33.0 | 37.7 | 43.6 | 46.3 | 20.9 | 41.2 | 29.4 | 13.9 | 9.7 |
| EV/EBIT | 86.5 | 49.5 | 33.3 | 41.0 | 44.0 | 47.5 | 54.2 | 54.6 | 25.2 | 42.4 | 34.2 | 15.7 | 11.0 |
| Price/Book | 5.5 | 6.7 | 7.1 | 11.0 | 13.3 | 14.4 | 17.5 | 21.5 | 11.0 | 17.3 | 16.4 | 11.8 | 8.6 |
| Price/Sales | 8.1 | 8.4 | 8.3 | 9.4 | 12.7 | 12.0 | 15.1 | 16.8 | 11.3 | 10.4 | 11.2 | 7.0 | 3.9 |
| FCF Yield | 3.1% | 2.7% | 3.8% | 2.9% | 3.0% | 2.6% | 2.3% | 2.2% | 4.8% | 2.4% | 3.4% | 7.2% | 10.4% |
| Market Cap | 37.3B | 46.8B | 52.6B | 92.9B | 124.2B | 152.0B | 231.7B | 318.6B | 154.9B | 286.2B | 231.1B | 136.7B | 99.3B |
| Avg. Price | 66.08 | 79.20 | 96.30 | 137.51 | 229.73 | 272.11 | 400.49 | 549.51 | 421.99 | 441.07 | 535.22 | 389.65 | 248.83 |
| Year-End Price | 73.68 | 92.17 | 104.50 | 185.40 | 249.21 | 309.06 | 477.03 | 662.10 | 328.97 | 623.32 | 513.68 | 320.13 | 248.83 |
ADOBE INC. passes 8 of 9 quality checks, indicating strong fundamentals.
ADOBE INC. trades at 14.9x trailing earnings, compared to its 15-year median P/E of 46.5x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 10.4x vs a median of 33.5x. The company's 5-year average ROIC is 44.3% with a gross margin of 64.4%. Total shareholder yield (buybacks) is 9.2%. At current prices, the estimated annualized return to fair value is +17.3%.
ADOBE INC. (ADBE) has a current P/E ratio of 14.9, compared to its historical median P/E of 46.5. The stock is currently considered Cheap based on its historical valuation range.
ADOBE INC. (ADBE) has a 5-year average return on invested capital (ROIC) of 44.3%. This indicates strong capital allocation and a potential competitive advantage.
ADOBE INC. (ADBE) has a market capitalization of $99.3B. It is classified as a large-cap stock.
ADOBE INC. (ADBE) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 9.19%.
Based on historical P/E analysis, ADOBE INC. (ADBE) appears cheap. The current P/E of 14.9 is 68% below its historical median of 46.5. The estimated fair value CAGR (P/E method) is 12.9%.
ADOBE INC. (ADBE) operates in the Services-Prepackaged Software industry, within the Technology sector.
ADOBE INC. (ADBE) reported annual revenue of $23.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
| Metric | Target | Period |
|---|---|---|
| Total Adobe Revenue | $26.5–26.6 billion | FY 2026 |
| Business Professionals and Consumers Subscription Revenue | $7.44–7.48 billion | FY 2026 |
| Total Adobe ARR Growth | 10.2% | FY 2026 |
| Non-GAAP Operating Margin | approximately 45% | FY 2026 |
| Q3 FY 2026 Total Adobe Revenue | $6.67–6.72 billion | Q3 FY 2026 |
| Q3 FY 2026 Business Professionals and Consumers Subscription Revenue | $1.87–1.89 billion | Q3 FY 2026 |
Total Adobe Revenue (FY 2026): “For FY 2026, we are targeting total Adobe revenue of $26.5 billion-$26.6 billion.”
Business Professionals and Consumers Subscription Revenue (FY 2026): “Business professionals and consumers subscription revenue of $7.44 billion-$7.48 billion.”
Total Adobe ARR Growth (FY 2026): “Our FY 2026 total Adobe ARR growth target of 10.2% now reflects both the addition of the Semrush book of business as well as the strategic choice to accelerate MAU freemium growth and defer previously planned Creative Cloud line optimizations.”
Non-GAAP Operating Margin (FY 2026): “Our FY 2026 targets assume a non-GAAP operating margin of approximately 45%”
Q3 FY 2026 Total Adobe Revenue (Q3 FY 2026): “For Q3 FY 2026, we are targeting total Adobe revenue of $6.67 billion-$6.72 billion.”
Q3 FY 2026 Business Professionals and Consumers Subscription Revenue (Q3 FY 2026): “Business professionals and consumer subscription revenue of $1.87 billion-$1.89 billion.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| 7.4B |
| 6.9B |
| ROIC | 57.5% | 60.4% | 44.0% | 42.7% | 37.6% | 36.9% |
|---|
| Gross Margin | 89.4% | 66.0% | 62.5% | 65.3% | 63.5% | 64.8% |
|---|
| Debt/Equity | 0.58 | 0.57 | 0.43 | 0.25 | 0.33 | 0.32 |
|---|
| Dividends/Share | $0.00 | - | - | - | - | - |
|---|
| Operating Income | 9.1B | 8.7B | 6.7B | 6.7B | 6.1B | 5.8B |
|---|
| Operating Margin | 36.1% | 36.6% | 31.3% | 34.3% | 34.6% | 36.8% |
|---|
| ROE | 62.8% | 55.4% | 36.3% | 35.5% | 33.0% | 34.4% |
|---|
| Shares Outstanding | 399M | 427M | 450M | 459M | 471M | 481M |
|---|
ADOBE INC. (ADBE) has a net profit margin of 30.0%. This is a strong margin indicating high profitability.
ADOBE INC. (ADBE) generated $9.9 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ADOBE INC. (ADBE) has a debt-to-equity ratio of 0.57. This indicates moderate leverage.
ADOBE INC. (ADBE) reported earnings per share (EPS) of $16.70 in its most recent fiscal year.
ADOBE INC. (ADBE) has a return on equity (ROE) of 55.4%. This indicates the company generates strong returns for shareholders.
ADOBE INC. (ADBE) has a 5-year average gross margin of 64.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for ADOBE INC. (ADBE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ADOBE INC. (ADBE) has a book value per share of $27.22, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is strategically shifting to accelerate freemium customer acquisition and AI-first product adoption to build a larger user base, with the expectation that this foundation-building phase will translate into accelerated ARR growth and monetization in the second half of fiscal 2026 and beyond. The company is embedding AI agents and conversational interfaces across its portfolio to simplify workflows and reduce traditional onboarding barriers, enabling faster customer onboarding and engagement across business professionals, consumers, creators, and marketing professionals. Enterprise demand for content supply chain and customer experience orchestration solutions remains strong, with global customer wins demonstrating continued momentum in the digital experience segment, and management expects this strength to persist as brands increasingly need to manage brand visibility across LLMs, traditional search, and owned channels. Adobe is integrating with leading AI platforms including Anthropic, Google, Microsoft, NVIDIA, and OpenAI to provide customers with choice and flexibility in model selection, positioning the company to benefit from multiple AI ecosystem winners while maintaining its commercially safe, brand-compliant approach to generative AI.
Based on recent SEC filings and earnings calls, ADOBE INC. (ADBE) has provided the following forward guidance: Total Adobe Revenue: $26.5–26.6 billion (FY 2026); Business Professionals and Consumers Subscription Revenue: $7.44–7.48 billion (FY 2026); Total Adobe ARR Growth: 10.2% (FY 2026); Non-GAAP Operating Margin: approximately 45% (FY 2026); Q3 FY 2026 Total Adobe Revenue: $6.67–6.72 billion (Q3 FY 2026), plus 1 additional metric.