Stock · ADBE · Technology

Adobe Inc.

United States · Large Cap · listed since 1986 · Revenue 12 mo. $26B

Price as of 11/06/2026

StockScorer score
7.3
of 10 8 of 11 points High Match To the score
Price
$239.30
1 Y −36.5%
Market cap
$93.9B
Phase
Growth
revenue growing, core business profitable
Revenue +10.5% a year (3 years)EBIT margin 36.6%Payout 112.5% of operating cash flow

Adobe Inc. operates as a technology company worldwide.

moreless

Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content. This segment serves photographers, video editors, graphic and experience designers, game developers, content creators, students, marketers, business owners, knowledge workers, and consumers. The Digital Experience segment provides an integrated platform; and products, services, and solutions that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers e-learning, technical document publishing, web conferencing, document and forms platform, web application development, printing, and Adobe Advertising solutions. It also provides consulting, training, customer management, technical support, and learning services. The company offers its solutions to enterprise customers, and businesses and consumers; and licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added resellers, and original equipment and hardware manufacturers. The company also provides an online visibility management and content marketing software-as-a-service platform. The company has a strategic alliance with HUMAIN for the development of generative AI models and AI-powered applications. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

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Summary

Adobe Inc. is above the middle of the Technology sector overall

61.3 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The market value is below the value without growth: the price requires no FCF growth.

Required FCF growth per year

no growth

no growth afterwards

Valuation against its own history

Price to operating cash flow 8.7×, below its usual range.

Middle half of 20 quarters: 16.6× to 30.9×, median 23.3×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

4 signs support the expectation, none speaks against it.

What supports it

with respect to the priced-in expectation

  • High, stable gross margin median 87.2%, range 4.2 pp (10 years)
  • High return on capital every year ROCE at least 15.1% (10 years)
  • Low capital needs capex median 2.5% of revenue (10 years)
1 more
  • Steady FCF margin at least 34.1%, range 9.6 pp (10 years)

What speaks against it

with respect to the priced-in expectation

No anomaly in the stored figures.

Since the last quarter

Q2 → Q3 2026

A mixed quarter: 1 figure better, 1 worse.

  • Net debt$2.1B → $2.4B+12.0%worse
  • Shares outstanding402M → 395M−1.7%better

6 more unchanged: Revenue, 12 mo., FCF, 12 mo., Gross margin, EBIT margin, FCF margin, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability94.1above the middleEarns more than the sector: Gross margin 89.27%, sector 48.47%.
MetricStockSector medianPosition in sector
Return on equity61.34%14.60%Rank 93
Return on capital (Greenblatt)398.44%29.77%Rank 96
EBIT margin36.63%17.40%Rank 89
FCF margin41.45%18.54%Rank 93
Gross margin89.27%48.47%Rank 99
Growth39.5below the middleGrows more slowly than the sector: Sustainable growth (ROE × retained earnings) 0.75%, sector 2.87%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year10.53%12.70%Rank 42
Earnings growth, 3 years per year18.25%9.54%Rank 69
Earnings growth, 5 years per year9.01%14.07%Rank 30
Sustainable growth (ROE × retained earnings)0.75%2.87%Rank 17
Valuation83.9above the middleValued lower than the sector: FCF yield 10.49%, sector 3.06%.
MetricStockSector medianPosition in sector
Earnings yield6.98%2.64%Rank 89
FCF yield10.49%3.06%Rank 95
EV/saleslower is better3.955.18Rank 63
EV/EBITlower is better10.7926.24Rank 89
Momentum40.8around the middleShare price moving about like the sector.
MetricStockSector medianPosition in sector
Share price, 1 year−36.50%−0.59%Rank 11
Share price, 6 months−4.95%−4.46%Rank 49
Share price, 3 months−4.64%−5.84%Rank 52
Distance from 52-week high−33.07%−33.23%Rank 50
Quality65.3above the middleQuality above the sector: Change in share count −5.11%, sector −0.17%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better−5.74%1.65%Rank 86
Change in share countlower is better−5.11%−0.17%Rank 93
Dividend streak in years08Rank 18
Price reaction to results, market-adjusted0.48%−1.57%Rank 64
Balance sheet & risk44.4around the middleRisk about like the sector.
MetricStockSector medianPosition in sector
Equity ratio39.41%53.98%Rank 30
Net debt/EBITDAlower is better0.01−0.20Rank 45
Debt to equitylower is better0.570.33Rank 29
Volatility, 1 yearlower is better41.43%50.37%Rank 74

Ten years in figures

Revenue from $5.9B (2016) to $23.8B (2025), 16.8% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt
20165.925.5%2.0504M$890.8M
20177.329.7%2.7501M−$424.7M
20189.031.5%3.8498M$2.5B
201911.229.3%4.1492M$1.5B
202012.932.9%5.3485M$230.0M
202115.836.8%6.9481M$829.0M
202217.634.6%7.4471M$397.0M
202319.434.3%6.9459M−$3.1B
202421.531.4%7.9450M−$1.6B
202523.836.6%9.9427M$1.2B
7.3 / 10High MatchStockScorer score8 of 11 points

5 of 7 StockScorer Score rules met · How the score is built

Adobe Inc. mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 50%This stock · Valuation: 100%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Adobe Inc.'s score is built

Adobe Inc. is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

5 of 7 rules met

8 of 11 points

  1. Free cash flow yield above the sector medianmet2 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Adobe Inc. stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Altman Z-Score: Stress Test
  • Earnings Quality: Accrual Check (Sloan)
  • Magic Formula: Value + Quality
  • Trending Value: Value + Momentum
  • Undervalued Stocks: Multi-Factor Check
  • Levermann Strategy (13 Criteria)
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Defensive: Low Volatility
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • PEG Strategy (inspired by Peter Lynch)
  • Growth Momentum (CAN SLIM principle)

Adobe Inc. key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Adobe Inc.

MetricStockSector
P/E ratio14.335.1
P/B ratio8.85.5
Return on equity (ROE)61.3%14.6%
Equity ratio39.4%54.0%
Debt-to-equity (D/E)0.570.33
Dividend yield–0.9%

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How comparable stocks in the same sector score in the StockScorer model.

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CDNSCadence Design Systems IncLow4.5
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Frequently asked questions about Adobe Inc. stock

How does Adobe Inc. stock (ADBE) score in the StockScorer model?
Adobe Inc. stock reaches a StockScorer score of 7.3 out of 10, which is a high match with the rule-based strategies. 5 out of 7 flagship profile rules are met.
What is Adobe Inc.'s P/E ratio?
Adobe Inc.'s P/E ratio is 14.3. The Technology sector median is 35.1.
What sector is Adobe Inc. in?
Adobe Inc. is assigned to the Technology sector. Its rank within the sector is 61.3 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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