ADBE

Adobe Inc.

Fundamental data last updated:July 3, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

09/10/2026

Business Summary

Adobe Inc. stands as a prominent global software provider, delivering a diverse range of solutions. Its operations are structured into three primary business divisions: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment empowers individuals, teams, and enterprises to generate, disseminate, and amplify various forms of content through its array of products and services, including the cloud-native Document Cloud platform. Central to this segment is Creative Cloud, its subscription-based flagship, granting access to a comprehensive suite of creative tools. This division caters to a diverse range of users, from professional content creators and marketers to educators, communicators, and general consumers. Adobe's Digital Experience division offers an integrated suite of applications and services designed to empower brands and businesses to craft, orchestrate, assess, and enhance customer journeys, from initial analytical insights to final commercial transactions. It serves a broad professional base including marketing teams, advertisers, agencies, data scientists, and senior executives. The Publishing and Advertising segment provides specialized offerings such as e-learning tools, technical documentation services, web conferencing solutions, advanced printing technologies, and its Advertising Cloud suite. Adobe engages directly with enterprise clients through its dedicated sales teams and regional offices. Individual end-users can access its offerings via app stores or its official website, adobe.com. Additionally, an extensive indirect channel supports distribution, encompassing partners such as distributors, value-added resellers, system integrators, software vendors, retailers, and original equipment manufacturers. Established in 1982, the company, initially named Adobe Systems Incorporated, rebranded as Adobe Inc. in October 2018. Its corporate headquarters are situated in San Jose, California.

 


VALUATION

P/E

12.22

Market Cap ($M USD)

$87.34B

Forward P/E

6.31

PEG

0.07

PRICE TO SALES

3.47

PRICE TO BOOK

7.67

EV / EBITDA

9.00

5-Year Average P/E

Free Cash Flow Yield

12.17%

DCF Value

$355.98

Graham Number

$107.67

Price to FCF

8.22

EV to FCF

8.42

Earnings Yield

8.18%

FCF Yield

12.17%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$17.98

Next Year EPS Growth Estimate

$34.84

Next Year Revenue Growth Estimate

$3.73T

Return on Equity (ROE)

62.39%

FREE CASH FLOW

Operating Margin

36.07%

Debt-to-Equity

0.57

Piotroski F-Score

8

Altman Z-Score

6.67

Return on Invested Capital (ROIC)

50.91%

Current Ratio

0.75

Quick Ratio

0.75

Net Debt to EBITDA

0.22

Interest Coverage

67.33

Gross Profit margin

89.12%

FCF PER SHARE

$26.44

REVENUE PER SHARE

$62.68

Gainseekers Quantitative Analysis

Summary

Adobe Inc. presents a compelling valuation story. Despite trading below its DCF value, the stock’s Forward P/E of 7.41 and a remarkably low PEG ratio of 0.08 suggest significant undervaluation relative to its growth prospects. The Altman Z-score of 7.38 indicates robust financial health, minimizing bankruptcy risk. With an earnings yield of 7.11%, Adobe is positioned as a lucrative opportunity for investors seeking both safety and growth potential. The market appears to be mispricing this tech giant, offering a potential entry point for savvy investors.

AI Exposure / Tech Reliance

As a leader in the Software - Infrastructure industry, Adobe is well-positioned to capitalize on AI advancements. Its focus on creative and digital media solutions aligns seamlessly with AI-driven content creation and analytics. This strategic positioning ensures resilience and adaptability in the rapidly evolving tech landscape.

The Bull Case

For value and GARP investors, Adobe's allure lies in its exceptional capital efficiency and profitability. With a ROIC of 48.93% and a Piotroski F-Score of 7, the company demonstrates strong operational execution. Its FCF yield of 10.33% and operating margin of 36.65% highlight Adobe's pricing power and ability to generate substantial free cash flow. These metrics underscore a business model that efficiently converts revenue into profit, making it an attractive investment for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Adobe faces challenges with its high Price/Book ratio of 8.86 and Price/Sales ratio of 4.09, which may deter value investors. The stock's proximity to its 52-week high, with a distance of 71.10%, suggests potential overextension. Additionally, a current ratio of 0.91 raises concerns about short-term liquidity. These factors could pose risks if market sentiment shifts or economic conditions tighten.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$260.12

Institutional Ownership %

1-Year Beta

1.40

Insider Buying % (6 Mo)

Distance to 52-Week High

75.95%

Distance to 52-Week Low

13.47%

EARNINGS SURPRISE %

2.41%

50-DAY SMA

$235.47

200-DAY SMA

$289.31

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.