Adobe Inc. (ADBE)
Information Technology · Application Software · US stock · S&P 500 component
$270.55
▲ +15.49 (6.07%)
Fair valueUndervalued
$390 +44.2% to fair value
$195fair band $332–$473$585
Day's range
$256.70 – $272.10
52-week range
$190.12 – $363.70
About Adobe Inc.
Adobe provides software for creating, editing and managing digital content and documents. Its products include Photoshop, Illustrator, Premiere Pro and Acrobat, along with Experience Cloud tools for marketing and analytics. Most revenue comes from subscriptions to its cloud services, which are sold to individual creators, businesses and large organizations, supplemented by smaller amounts from licenses, services and advertising technology.
Over the last twelve months Adobe Inc. reported revenue of $26.0 billion. Over three years revenue has grown by 10.5% a year. The operating margin is 35.7%. Return on invested capital is 58%. Net debt to EBITDA is 0.1 times. It does not pay a dividend. The X-Ray Score is 77 out of 100. Return on invested capital describes how much profit the business earns relative to the money put into it.
Price chart
52-wk range $190.12 – $363.70Volume 6,847,646Daily, split-adjusted
Vitals
Market cap$107.0B
52-week range$190.12 – $363.70
Volume (last day)6,847,646
P/E (TTM)15.2
EBIT / EV yield8.6%
Free-cash-flow yield9.9%
Dividend yieldNo dividend
Revenue (TTM)$26.0B
Net income (TTM)$7.3B
Operating margin35.7%
Return on capital58.3%
Debt incl. leases$6.4B
Cash & securities$5.6B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$390middle half of models $342 – $421
Undervalued
+44.2% to fair value
Average of the 12 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $271
Undervalued < $332Fair $332 – $473Overvalued > $473
P/E multiple
$339
P/B multiple
$347
P/S multiple
$489
EV/EBITDA multiple
$469
EV/EBIT multiple · not used
$616
EV/revenue multiple
$440
10-year DCF, EBITDA exit
$415
5-year DCF, EBITDA exit
$414
10-year DCF, revenue exit
$409
5-year DCF, revenue exit
$406
10-year DCF, growth exit
$319
5-year DCF, growth exit
$293
Earnings power value
$344
Growth the price implies
6.5%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Strong business at an attractive price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
95/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield8.6%
Free-cash-flow yield9.9%
Fair value vs price1.4×
Growth
Fair
57/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)10.5%
EPS growth (3y)18.2%
Growth consistency100%
Profitability
Strong
85/100
Earns high returns on the capital it uses.
See the numbers →
Return on invested capital58.3%
Operating margin35.7%
Gross profitability77.3%
Financial health
Fair
64/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA0.1×
Interest cover35.7×
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+10.6%
May '25
+10.7%
Aug '25
+10.5%
Nov '25
+12.0%
Feb '26
+12.7%
May '26
+12.9%
Aug '26
Revenue against the same quarter a year earlier. Latest quarter revenue $6.8B, diluted EPS $4.62.
Compare with peers
INTU Intuit Inc.71 FICO Fair Isaac Corp71 ADSK Autodesk, Inc.67 PLTR Palantir Technologies...63Other Application Software companies by X-Ray Score.
SWOT analysis: Adobe Inc.
Strengthsinside the company
- Return on invested capital is 58.3%, against a median of 19.7% for industry peers.
- Operating margin of 35.7% is well above the 26.2% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 10.5% a year over three years (median 12.9% for industry peers).
- Earnings per share have compounded at 18.2% a year over three years.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Trades at 14.7x earnings, 60% below the 37.1x median of industry peers.
- The price is 44% below our fair value estimate, with the gap larger than the margin we allow for error.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare ADBE with peers and sector
Medians of 13 Application Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): PLTR 63, ORCL 56, CRM 52, INTU 71, DDOG 50, CDNS 49.
| Metric | ADBE | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 77 | 57 | 50 |
| Valuation | 95 | 60 | 50 |
| Growth | 57 | 65 | 54 |
| Profitability | 85 | 61 | 49 |
| Financial health | 64 | 47 | 49 |
| Dividends | – | 72 | 50 |
Sector leaders: highest X-Ray Score in Information Technology
ADBE ranks #2 of 75 in Information Technology and #1 of 14 in Application Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for ADBE
Each factor is rated by where ADBE stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 14 Good · 7 Average · 1 Bad of 22
Growth: 0 · 3 · 0
Profitability: 5 · 0 · 0
Financial strength: 2 · 1 · 1
Valuation: 4 · 1 · 0
Cash flow: 2 · 2 · 0
Efficiency: 1 · 0 · 0
| Factor | ADBE | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +10.5% | Average beats 57% | +9.7% | – | – |
| Revenue growth, last year | +10.5% | Average beats 39% | +13.7% | +10.8% | ≈ In line |
| EPS growth, 3 years a year | +18.2% | Average beats 66% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 89.3% | Good beats 98% | 57.8% | 88.2% | ≈ In line |
| Operating margin | 35.7% | Good beats 82% | 20.3% | 34.6% | ≈ In line |
| Net margin | 28.0% | Good beats 75% | 17.8% | 28.0% | ≈ In line |
| Return on invested capital | 58.3% | Good beats 84% | 19.4% | – | – |
| Return on equity | 61.9% | Good beats 84% | 21.0% | 33.8% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 0.1x | Good beats 72% | 0.8x | -0.3x | ▼ Worse |
| Interest cover | 35.7x | Average beats 58% | 23.0x | 50.0x | ▼ Worse |
| Current ratio | 0.77 | Bad beats 9% | 1.57 | 1.11 | ▼ Worse |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 14.7x | Good beats 91% | 33.6x | 41.7x | ▲ Better |
| Price / book | 9.1x | Average beats 44% | 8.3x | 16.4x | ▲ Better |
| Price / sales | 4.1x | Good beats 73% | 6.9x | 10.8x | ▲ Better |
| EV / EBITDA | 10.7x | Good beats 90% | 24.7x | 30.2x | ▲ Better |
| Free cash flow yield | 9.9% | Good beats 95% | 3.4% | 3.4% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 40.8% | Good beats 87% | 22.3% | 41.4% | ≈ In line |
| Cash from operations / net income | 1.48 | Average beats 58% | 1.39 | 1.45 | ≈ In line |
| Free cash flow growth, 3 years a year | +10.0% | Average beats 43% | +15.4% | – | – |
| Accruals (lower is better) | −11.7% | Good beats 91% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 29 days | Good beats 91% | 63 days | 42 days | ▲ Better |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 11 Good · ● 4 Average · ● 1 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldGood
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 76/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $15.8B | $17.6B | $19.4B | $21.5B | $23.8B |
| Operating income | $5.8B | $6.1B | $6.7B | $6.7B | $8.7B |
| Net income | $4.8B | $4.8B | $5.4B | $5.6B | $7.1B |
| Operating cash flow | $7.2B | $7.8B | $7.3B | $8.1B | $10.0B |
| Operating margin | 36.8% | 34.6% | 34.3% | 31.3% | 36.6% |
| Free cash flow | $6.9B | $7.4B | $6.9B | $7.9B | $9.9B |
| Diluted EPS | $10.02 | $10.10 | $11.82 | $12.36 | $16.70 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Neutral
6 bullish · 1 neutral · 5 bearish
Monthly
Strongly bearish
1 bullish · 1 neutral · 6 bearish
Moving averages (daily)
| SMA 10 | 248.4 | Bullish |
| EMA 10 | 251.5 | Bullish |
| SMA 20 | 242.6 | Bullish |
| EMA 20 | 248.3 | Bullish |
| SMA 50 | 255.9 | Bullish |
| EMA 50 | 249.0 | Bullish |
| SMA 100 | 243.1 | Bullish |
| EMA 100 | 250.2 | Bullish |
| SMA 200 | 252.6 | Bullish |
| EMA 200 | 265.3 | Bullish |
Oscillators (daily)
| RSI (14) | 65.36 | Neutral |
| MACD (12, 26) | 1.87 | Bullish |
| Momentum (12) | 13.62 | Bullish |
| Stochastic %K (14) | 96.56 | Bearish |
| Williams %R (14) | -3.44 | Bearish |
| CCI (20) | 240.0 | Bearish |
Pivot points (classic, last session)
S3 245.4 | S2 251.0 | S1 260.8 | Pivot 266.4 | R1 276.2 | R2 281.9 | R3 291.6 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold ADBE
| ETF | Share of the fund |
|---|---|
| VFLO VictoryShares Free Cash Flow | 3.37% |
| IGV iShares Expanded Tech-Software Sector | 3.13% |
| GARP iShares MSCI USA Quality GARP | 2.70% |
| AIPI REX AI Equity Premium Income | 2.60% |
| IGPT Invesco AI and Next Gen Software | 2.19% |
| COWZ Pacer US Cash Cows 100 | 1.90% |
| QTEC First Trust NASDAQ-100-Technology Sect... | 1.66% |
| SKYY First Trust Cloud Computing | 1.55% |
The eight funds with the largest weight in ADBE among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
ADBE stock splits
ADBE has split its stock 4 times since 1993. The latest was a 2-for-1 split on 24 May 2005.
Full ADBE stock split history →ADBE SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Director or officer change
8-KSEC EDGAR
Director or officer change; Shareholder vote results
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.