ADBE Adobe Inc. - Common Stock

NASDAQ · Technology · View on SEC EDGAR ↗
$249.00
Price · May 22, 2026
Fundamentals as of Mar 25, 2026
52W Range
$224–$421
13% of range
Analyst Rating
HOLD
46 analysts
Price Target
$327
+31% upside
P/E (TTM)
19.2
ROE
61.8%
Net Profit Margin
30.0%

ADBE Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$249.00
Market Cap
$132.21B
P/E (TTM)
19.2
EPS (TTM)
$16.70
Revenue (TTM)
$23.77B
Div Yield
—
ROE
61.8%
Debt/Equity
0.0
52W Range
$224 – $421

ADBE Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income $23.77B
10-point trend, +306.0%
2016-12-02 → 2025-11-28
EPS $16.70
10-point trend, +619.8%
2016-12-02 → 2025-11-28
Free Cash Flow $9.85B
10-point trend, +393.6%
2016-12-02 → 2025-11-28
Margins 30.0%
10-point trend, +3.8%
2016-12-02 → 2025-11-28

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
ADBE
Peer Median
P/E (TTM)
5-point trend, -68.8%
19.2
50.7
P/S (TTM)
5-point trend, -70.0%
5.6
14.4
P/B
5-point trend, -42.5%
11.4
14.6
EV / EBITDA
13.2
—
Price / FCF
5-point trend, -68.5%
13.4
—

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
ADBE
Peer Median
Gross Margin
5-point trend, +1.2%
89.3%
81.7%
Operating Margin
5-point trend, -0.4%
36.6%
—
Net Profit Margin
5-point trend, -1.8%
30.0%
25.8%
ROA
5-point trend, +27.6%
23.9%
11.9%
ROE
5-point trend, +87.2%
61.8%
21.9%
ROIC
5-point trend, +84.5%
61.2%
—

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
ADBE
Peer Median
Debt / Equity
0.0
51.9
Current Ratio
5-point trend, -20.3%
1.0
1.5
Quick Ratio
5-point trend, -20.9%
0.9
—

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
ADBE
Peer Median
Revenue YoY
5-point trend, +50.6%
10.5%
—
Revenue CAGR 3Y
5-point trend, +50.6%
10.5%
—
Revenue CAGR 5Y
5-point trend, +50.6%
13.1%
—
EPS YoY
5-point trend, +66.7%
35.1%
—
Net Income YoY
5-point trend, +47.9%
28.2%
—

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
ADBE
Peer Median
EPS (Diluted)
5-point trend, +66.7%
$16.70
—

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
ADBE
Peer Median

Dividends Yield, payout ratio, dividend history, 5Y CAGR

Dividend Yield
—
Payout Ratio
—
5Y Div CAGR
—
Ex-dateAmount
March 24, 2005$0.0065
Dec. 23, 2004$0.0065
Sept. 24, 2004$0.0065
June 25, 2004$0.0065
March 26, 2004$0.0065
Jan. 7, 2004$0.0065
Sept. 19, 2003$0.0065
June 19, 2003$0.0065
March 20, 2003$0.0065
Jan. 7, 2003$0.0065
Sept. 20, 2002$0.0065
June 21, 2002$0.0065
March 21, 2002$0.0065
Dec. 31, 2001$0.0065
Sept. 21, 2001$0.0065
June 22, 2001$0.0065
March 22, 2001$0.0065
Jan. 2, 2001$0.0065
Sept. 28, 2000$0.0063
June 30, 2000$0.0063

ADBE Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

BUY 46 analysts
  • Strong Buy 10 21.7%
  • Buy 11 23.9%
  • Hold 21 45.7%
  • Sell 4 8.7%
  • Strong Sell 0 0.0%

12-Month Price Target

34 analysts · 2026-05-19
Median target $314.75 +26.4%
Mean target $327.28 +31.4%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
0.02%
Next Report
Jun 11, 2026
Period EPS Actual EPS Est Surprise
March 31, 2026 $6.06 $5.99 0.07%
Dec. 31, 2025 $5.50 $5.50 -0.00%
Sept. 30, 2025 $5.31 $5.28 0.03%
June 30, 2025 $5.06 $5.06 -0.00%

Peer Comparison Key metrics vs sector peers

Ticker Market Cap P/E Rev YoY Net Margin ROE Gross Margin
ADBE $132.21B 19.2 10.5% 30.0% 61.8% 89.3%
PLTR $425.03B 282.1 56.2% 36.3% 26.2% 82.4%
APP $227.96B 69.1 70.0% 60.8% 201.9% —
CRM $197.22B 27.2 9.6% 18.0% 12.4% 77.7%
CDNS $84.96B 77.0 14.1% 20.9% 21.2% —
SNPS $84.41B 56.4 15.1% 18.9% 7.1% 77.0%
INTU $219.15B 57.4 15.6% 20.5% 20.5% —
DDOG $47.94B 438.7 27.7% 3.1% 3.1% 80.0%
MSTR — -10.0 3.0% -806.3% -8.4% 68.7%
ADSK $53.90B 48.6 17.5% 15.6% 39.0% 91.0%
ROP $47.45B 31.3 12.3% 19.4% 7.8% 69.2%

Full Fundamentals All metrics by year — income statement, balance sheet, cash flow

Income Statement 17
Annual Income Statement data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
Revenue 12-point trend, +473.2% $23.77B $21.50B $19.41B $17.61B $15.79B $12.87B $11.17B $9.03B $7.30B $5.85B $4.80B $4.15B
Cost of Revenue 12-point trend, +310.1% $2.55B $2.36B $2.35B $2.17B $1.86B $1.72B $1.67B $1.20B $1.01B $820M $744M $622M
Gross Profit 12-point trend, +501.9% $21.22B $19.15B $17.05B $15.44B $13.92B $11.15B $9.50B $7.83B $6.29B $5.03B $4.05B $3.52B
SG&A Expense 12-point trend, +189.5% $1.57B $1.53B $1.41B $1.22B $1.08B $968M $881M $745M $625M $576M $533M $543M
Operating Expenses 12-point trend, +302.0% $12.51B $12.41B $10.40B $9.34B $8.12B $6.91B $6.23B $5.00B $4.12B $3.54B $3.15B $3.11B
Operating Income 12-point trend, +2009.6% $8.71B $6.74B $6.65B $6.10B $5.80B $4.24B $3.27B $2.84B $2.17B $1.49B $903M $413M
Interest Expense 10-point trend, +89.2% · · $113M $112M $113M $116M $157M $89M $74M $70M $64M $60M
Interest Income 12-point trend, +1136.2% $264M $341M $269M $61M $17M $43M $68M $93M $66M $47M $29M $21M
Other Non-op 12-point trend, +29960.6% $248M $311M $246M $-90M $-97M $-61M $-63M $-46M $-30M $-58M $22M $825.0K
Pretax Income 12-point trend, +2316.9% $8.73B $6.93B $6.80B $6.01B $5.71B $4.18B $3.21B $2.79B $2.14B $1.44B $874M $361M
Income Tax 12-point trend, +1625.1% $1.60B $1.37B $1.37B $1.25B $883M $-1.08B $254M $203M $444M $266M $244M $93M
Net Income 12-point trend, +2556.5% $7.13B $5.56B $5.43B $4.76B $4.82B $5.26B $2.95B $2.59B $1.69B $1.17B $630M $268M
EPS (Basic) 12-point trend, +2998.1% $16.73 $12.43 $11.87 $10.13 $10.10 $10.94 $6.07 $5.28 $3.43 $2.35 $1.26 $0.54
EPS (Diluted) 12-point trend, +3050.9% $16.70 $12.36 $11.82 $10.10 $10.02 $10.83 $6.00 $5.20 $3.38 $2.32 $1.24 $0.53
Shares (Basic) 12-point trend, -14.4% 426,000,000 447,000,000 457,000,000 470,000,000 477,000,000 481,000,000 486,000,000 491,000,000 493,632,000 498,345,000 498,764,000 497,867,000
Shares (Diluted) 12-point trend, -16.0% 427,000,000 450,000,000 459,000,000 471,000,000 481,000,000 485,000,000 492,000,000 498,000,000 501,123,000 504,299,000 507,164,000 508,480,000
EBITDA 12-point trend, +1211.3% $9.52B $7.60B $7.52B $6.95B $6.59B $4.99B $4.00B $3.19B $2.49B $1.83B $1.24B $726M
Balance Sheet 29
Annual Balance Sheet data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
Cash & Equivalents 12-point trend, +386.0% $5.43B $7.61B $7.14B $4.24B $3.84B $4.48B $2.65B $1.64B $2.31B $1.01B $877M $1.12B
Short-term Investments 12-point trend, -55.6% $1.16B $273M $701M $1.86B $1.95B $1.51B $1.53B $1.59B $3.51B $3.75B $3.11B $2.62B
Receivables 12-point trend, +296.1% $2.34B $2.07B $2.22B $2.06B $1.88B $1.40B $1.53B $1.32B $1.22B $833M $672M $592M
Prepaid Expense 12-point trend, +596.4% $1.22B $1.27B $1.02B $835M $993M $756M $783M $312M $210M $245M $162M $176M
Current Assets 12-point trend, +120.8% $10.16B $11.23B $11.08B $9.00B $8.67B $8.15B $6.50B $4.86B $7.25B $5.84B $4.82B $4.60B
PP&E (Net) 12-point trend, +138.6% $1.87B $1.94B $2.03B $1.91B $1.67B $1.52B $1.29B $1.08B $937M $816M $787M $785M
PP&E (Gross) 12-point trend, +111.9% $3.60B $3.59B $3.76B $3.48B $3.12B $2.98B $2.86B $2.48B $2.20B $1.93B $1.76B $1.70B
Accum. Depreciation 12-point trend, +89.1% $1.73B $1.66B $1.73B $1.57B $1.45B $1.46B $1.57B $1.41B $1.27B $1.11B $971M $914M
Goodwill 12-point trend, +172.3% $12.86B $12.79B $12.80B $12.79B $12.67B $10.74B $10.69B $10.58B $5.82B $5.41B $5.37B $4.72B
Intangibles 12-point trend, +5.4% $495M $782M $1.09B $1.45B $1.82B $1.36B $1.72B $2.07B $386M $414M $510M $470M
Other Non-current Assets 12-point trend, +1174.6% $1.61B $1.55B $1.22B $841M $883M $663M $562M $187M $144M $140M $160M $126M
Total Assets 12-point trend, +173.5% $29.50B $30.23B $29.78B $27.16B $27.24B $24.28B $20.76B $18.77B $14.54B $12.70B $11.73B $10.79B
Accounts Payable 12-point trend, +509.9% $417M $361M $314M $379M $312M $306M $209M $186M $114M $88M $93M $68M
Accrued Liabilities 12-point trend, +287.2% $2.65B $2.34B $1.94B $1.79B $1.74B $1.42B $1.40B $1.16B $994M $740M $680M $684M
Current Liabilities 12-point trend, +308.9% $10.20B $10.52B $8.25B $8.13B $6.93B $5.51B $8.19B $4.30B $3.53B $2.81B $2.21B $2.49B
Capital Leases 7-point trend, +361000000.00 $361M $353M $373M $417M $453M $499M $0 · · · · ·
Deferred Tax 8-point trend, -98.5% · · · · $5M $10M $140M $47M $280M $218M $208M $342M
Other Non-current Liabilities 12-point trend, +588.8% $508M $446M $376M $293M $257M $223M $173M $152M $125M $97M $89M $74M
Total Liabilities 12-point trend, +345.7% $17.87B $16.12B $13.26B $13.11B $12.44B $11.02B $10.23B $9.41B $6.08B $5.27B $4.72B $4.01B
Long-term Debt 12-point trend, +581.6% $6.21B $4.13B $3.63B $3.63B $4.12B $4.12B $989M $4.12B $1.88B $1.89B $1.91B $911M
Total Debt $0 · · · · · · · · · · ·
Common Stock 12-point trend, -100.0% $0 $0 $0 $0 $0 $0 $0 $61.0K $61.0K $61.0K $61.0K $61.0K
Paid-in Capital 12-point trend, +306.5% $15.36B $13.42B $11.59B $9.87B $8.43B $7.36B $6.50B $5.69B $5.08B $4.62B $4.18B $3.78B
Retained Earnings 12-point trend, +555.0% $45.35B $38.47B $33.35B $28.32B $23.91B $19.61B $14.83B $11.82B $9.57B $8.11B $7.25B $6.92B
Treasury Stock 12-point trend, +1146.5% $48.85B $37.58B $28.13B $23.84B $17.40B $13.55B $10.62B $7.99B $6.08B $5.13B $4.27B $3.92B
AOCI 12-point trend, -2926.9% $-245M $-201M $-285M $-293M $-137M $-158M $-188M $-148M $-112M $-174M $-169M $-8M
Stockholders' Equity 12-point trend, +71.5% $11.62B $14.11B $16.52B $14.05B $14.80B $13.26B $10.53B $9.36B $8.46B $7.42B $7.00B $6.78B
Liabilities + Equity 12-point trend, +173.5% $29.50B $30.23B $29.78B $27.16B $27.24B $24.28B $20.76B $18.77B $14.54B $12.70B $11.73B $10.79B
Shares Outstanding 12-point trend, -17.0% 413,000,000 441,000,000 455,000,000 462,000,000 475,000,000 479,000,000 483,000,000 487,663,000 491,262,000 494,254,000 497,809,000 497,484,000
Cash Flow 18
Annual Cash Flow data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
D&A 12-point trend, +160.9% $818M $857M $872M $856M $788M $757M $757M $346M $326M $332M $339M $314M
Stock-based Comp 12-point trend, +482.0% $1.94B $1.83B $1.72B $1.44B $1.07B $909M $788M $610M $454M $349M $336M $334M
Deferred Tax 12-point trend, -1082.7% $-514M $-468M $-422M $326M $192M $-1.50B $5M $-467M $50M $22M $-66M $-43M
Amort. of Intangibles 12-point trend, +103.0% $310M $336M $375M $405M $354M $367M $402M $183M $154M $152M $174M $153M
Restructuring 3-point trend, -107.6% · · · · · · · · · $-2M $2M $20M
Other Non-cash 12-point trend, +57.7% $655M $274M $-294M $460M $359M $305M $-59M $950M $391M $328M $231M $415M
Operating Cash Flow 12-point trend, +679.1% $10.03B $8.06B $7.30B $7.84B $7.23B $5.73B $4.42B $4.03B $2.91B $2.20B $1.47B $1.29B
CapEx 12-point trend, +20.7% $179M $183M $360M $442M $348M $419M $395M $267M $178M $204M $185M $148M
Investing Cash Flow 12-point trend, -141.9% $-1.19B $149M $776M $-570M $-3.54B $-414M $-456M $-4.68B $-443M $-960M $-1.49B $-491M
Debt Issued 6-point trend, +1997000000.00 $2.00B $2.00B $0 · · · · · · $0 $989M $0
Net Debt Issued 7-point trend, +497000000.00 $497M $0 $-500M $0 $0 $-3.15B · · · $0 · ·
Stock Repurchased 12-point trend, +1780.2% $11.28B $9.50B $4.40B $6.55B $3.95B $3.05B $2.75B $2.05B $1.10B $1.07B $600M $600M
Net Stock Activity 12-point trend, -1780.2% $-11.28B $-9.50B $-4.40B $-6.55B $-3.95B $-3.05B $-2.75B $-2.05B $-1.10B $-1.07B $-625M $-600M
Financing Cash Flow 12-point trend, -2080.2% $-11.06B $-7.72B $-5.18B $-6.83B $-4.30B $-3.49B $-2.95B $-5M $-1.18B $-1.09B $-201M $-507M
Net Change in Cash 12-point trend, -871.4% $-2.18B $472M $2.90B $392M $-634M $1.83B $1.01B $-663M $1.29B $135M $-241M $283M
Taxes Paid 12-point trend, +10917.9% $2.22B $1.73B $1.85B $778M $843M $469M $352M $210M $397M $250M $203M $20M
Free Cash Flow 12-point trend, +764.9% $9.85B $7.87B $6.94B $7.40B $6.88B $5.31B $4.03B $3.76B $2.73B $2.00B $1.28B $1.14B
Levered FCF 10-point trend, +525.9% · · $6.85B $7.31B $6.79B $5.16B $3.88B $3.68B $2.68B $1.94B $1.24B $1.09B
Profitability 8
Annual Profitability data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
Gross Margin 12-point trend, +5.0% 89.3% 89.0% 87.9% 87.7% 88.2% 86.6% 85.0% 86.8% 86.2% 86.0% 84.5% 85.0%
Operating Margin 12-point trend, +268.1% 36.6% 31.4% 34.3% 34.6% 36.8% 32.9% 29.2% 31.4% 29.7% 25.5% 18.8% 10.0%
Net Margin 12-point trend, +363.7% 30.0% 25.9% 28.0% 27.0% 30.6% 40.9% 26.4% 28.7% 23.2% 20.0% 13.1% 6.5%
Pretax Margin 12-point trend, +321.9% 36.8% 32.2% 35.0% 34.1% 36.1% 32.5% 28.7% 30.9% 29.3% 24.5% 18.2% 8.7%
EBITDA Margin 12-point trend, +128.8% 40.1% 35.3% 38.8% 39.5% 41.8% 38.8% 35.9% 35.3% 34.2% 31.2% 25.9% 17.5%
ROA 12-point trend, +840.2% 23.9% 18.5% 19.1% 17.5% 18.7% 23.4% 14.9% 15.6% 12.4% 9.6% 5.6% 2.5%
ROE 12-point trend, +1453.0% 61.8% 38.8% 33.6% 33.5% 33.0% 42.1% 28.4% 28.4% 21.3% 16.2% 9.1% 4.0%
ROIC 12-point trend, +1252.9% 61.2% 38.3% 32.1% 34.4% 33.1% 40.2% 28.6% 28.1% 20.3% 16.4% 9.3% 4.5%
Liquidity & Solvency 4
Annual Liquidity & Solvency data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
Current Ratio 12-point trend, -46.0% 1.0 1.1 1.3 1.1 1.3 1.5 0.8 1.1 2.1 2.1 2.2 1.8
Quick Ratio 12-point trend, -49.5% 0.9 0.9 1.2 1.0 1.1 1.3 0.7 1.1 2.0 2.0 2.1 1.7
Debt / Equity 0.0 · · · · · · · · · · ·
Interest Coverage 10-point trend, +751.8% · · 58.8 54.4 51.3 36.5 20.8 31.8 29.1 21.2 14.1 6.9
Efficiency 2
Annual Efficiency data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
Asset Turnover 12-point trend, +103.1% 0.8 0.7 0.7 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.4
Receivables Turnover 12-point trend, +54.7% 10.8 10.0 9.1 8.9 9.6 8.8 7.7 7.1 7.1 7.8 7.6 7.0
Per Share 5
Annual Per Share data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
Book Value / Share 12-point trend, +106.6% $28.14 $31.98 $36.30 $30.41 $31.15 $27.69 $21.83 $19.20 $17.22 $15.02 $14.06 $13.62
Revenue / Share 12-point trend, +582.5% $55.67 $47.79 $42.29 $37.38 $32.82 $26.53 $22.73 $18.14 $14.57 $11.61 $9.46 $8.16
Cash Flow / Share 12-point trend, +827.8% $23.49 $17.90 $15.91 $16.64 $15.03 $11.81 $9.00 $8.09 $5.81 $4.36 $2.90 $2.53
Cash / Share 12-point trend, +485.5% $13.15 $17.26 $15.69 $9.17 $8.09 $9.35 $5.49 $3.37 $4.69 $2.05 $1.76 $2.25
EPS (TTM) 12-point trend, +3050.9% $16.70 $12.36 $11.82 $10.10 $10.02 $10.83 $6.00 $5.20 $3.38 $2.32 $1.24 $0.53
Growth Rates 9
Annual Growth Rates data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
Revenue YoY 5-point trend, -53.6% 10.5% 10.8% 10.2% 11.5% 22.7% · · · · · · ·
Revenue CAGR 3Y 3-point trend, -28.3% 10.5% 10.9% 14.7% · · · · · · · · ·
Revenue CAGR 5Y 13.1% · · · · · · · · · · ·
EPS YoY 5-point trend, +569.4% 35.1% 4.6% 17.0% 0.80% -7.5% · · · · · · ·
EPS CAGR 3Y 3-point trend, +516.6% 18.2% 7.2% 3.0% · · · · · · · · ·
EPS CAGR 5Y 9.0% · · · · · · · · · · ·
Net Income YoY 5-point trend, +439.0% 28.2% 2.4% 14.1% -1.4% -8.3% · · · · · · ·
Net Income CAGR 3Y 3-point trend, +1276.2% 14.4% 4.9% 1.1% · · · · · · · · ·
Net Income CAGR 5Y 6.3% · · · · · · · · · · ·
Valuation (TTM) 14
Annual Valuation (TTM) data for ADBE
Metric Trend 202520242023202220212020201920182017201620152014
Revenue TTM 12-point trend, +473.2% $23.77B $21.50B $19.41B $17.61B $15.79B $12.87B $11.17B $9.03B $7.30B $5.85B $4.80B $4.15B
Net Income TTM 12-point trend, +2556.5% $7.13B $5.56B $5.43B $4.76B $4.82B $5.26B $2.95B $2.59B $1.69B $1.17B $630M $268M
Market Cap 12-point trend, +260.7% $132.21B $227.53B $278.67B $157.79B $292.85B $228.50B $149.30B $122.35B $88.19B $49.29B $45.88B $36.65B
Enterprise Value $125.62B · · · · · · · · · · ·
P/E 12-point trend, -86.2% 19.2 41.7 51.8 33.8 61.5 44.0 51.6 48.2 53.1 43.0 74.3 139.0
P/S 12-point trend, -37.1% 5.6 10.6 14.4 9.0 18.6 17.8 13.4 13.5 12.1 8.4 9.6 8.8
P/B 12-point trend, +110.3% 11.4 16.1 16.9 11.2 19.8 17.2 14.2 13.1 10.4 6.6 6.6 5.4
P / Tangible Book 4-point trend, +116.5% · 425.3 106.2 · 947.7 196.5 · · · · · ·
P / Cash Flow 12-point trend, -53.7% 13.2 28.2 38.2 20.1 40.5 39.9 33.8 30.4 30.3 22.4 31.2 28.5
P / FCF 12-point trend, -58.3% 13.4 28.9 40.1 21.3 42.6 43.0 37.1 32.5 32.2 24.7 35.7 32.2
EV / EBITDA 13.2 · · · · · · · · · · ·
EV / FCF 12.8 · · · · · · · · · · ·
EV / Revenue 5.3 · · · · · · · · · · ·
Earnings Yield 12-point trend, +625.0% 5.2% 2.4% 1.9% 3.0% 1.6% 2.3% 1.9% 2.1% 1.9% 2.3% 1.4% 0.72%

Financial Statements Income statement, balance sheet, cash flow — annual, last 5 years

Income Statement
2025-11-282024-11-292023-12-012022-12-022021-12-03
Revenue $23.77B$21.50B$19.41B$17.61B$15.79B
Gross Margin % 89.3%89.0%87.9%87.7%88.2%
Operating Margin % 36.6%31.4%34.3%34.6%36.8%
Net Income $7.13B$5.56B$5.43B$4.76B$4.82B
Diluted EPS $16.70$12.36$11.82$10.10$10.02
Balance Sheet
2025-11-282024-11-292023-12-012022-12-022021-12-03
Debt / Equity 0.0————
Current Ratio 1.01.11.31.11.3
Quick Ratio 0.90.91.21.01.1
Cash Flow
2025-11-282024-11-292023-12-012022-12-022021-12-03
Free Cash Flow $9.85B$7.87B$6.94B$7.40B$6.88B

ADBE AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.75
↑ Bullish

Adobe's AI tools are converting hype into surging revenue, making it a durable leader in creative software for years ahead. Recent quarters show revenue up 12% to a record $6.4 billion, fueled by demand for generative AI features that expand the total addressable market. ROE hit 59.5%, reflecting Adobe's ability to turn equity into profits far better than peers like CRM at 12%, thanks to sticky subscriptions and pricing power. At a P/E of just 20.5, well below APP's 80 or INTU's 44, the stock trades like it's forgotten its moat.

↓ Bearish

Adobe faces leadership turmoil and slowing momentum that could erode its dominance as AI competition intensifies. The stock plunged from 420 to 363 in recent weeks, signaling investor doubt after an Argus downgrade to Hold on March 23 tied to CEO transition news. Current ratio at 0.9964 dips below 1.0, meaning short-term assets barely cover liabilities and liquidity strains could force tough choices. P/B of 11.5, even after declining, still prices in perfection that high debt-to-equity of 53 risks amplifying any earnings miss.

Claude NEUTRAL 0.68
↑ Bullish

Adobe's AI monetization is moving from hype to hard revenue, and the unit economics are holding up. Q1 revenue hit $6.4 billion, up 12% year-over-year, with AI tools driving annualized recurring revenue growth. The net margin sits at 30%, which means Adobe is converting sales into profit at a rate most software companies envy. Even at a P/E of 20.5, that's a discount to peers like Salesforce at 22.3 and well below Intuit at 44.8. If AI adoption accelerates through 2026, this valuation leaves room to run.

↓ Bearish

Adobe's balance sheet is stretched and the stock is pricing in a lot of near-term perfection. The debt-to-equity ratio of 53.43 is heavy for a software company, and the current ratio of 0.9964 sits just below the 1.0 comfort line—meaning short-term obligations are nearly equal to liquid assets. The ROE of 59.5% looks stellar on paper, but that kind of return often signals leverage working overtime rather than sustainable competitive moat. A CEO transition in March, combined with guidance pressure or any slowdown in AI adoption, could trigger a sharp repricing lower.

Gemini NEUTRAL 0.75
↑ Bullish

Adobe is finally proving that its AI investments are translating into tangible, high-margin revenue growth. The company is generating a 59.5% return on equity. This means for every dollar shareholders have invested, the business is producing nearly 60 cents in annual profit, demonstrating incredible capital efficiency. With a gross margin of 89.27%, Adobe keeps the vast majority of its revenue as pure profit before operating expenses. This level of profitability is elite, suggesting that their software dominance remains largely unchallenged by competitors, even as they pivot heavily into generative AI tools.

↓ Bearish

The leadership transition and the premium valuation relative to growth prospects make Adobe a risky bet in the current environment. The stock trades at a P/E of 20.55. While this looks cheap compared to some peers, it reflects market anxiety about the company's ability to maintain its historical growth rates after the CEO change. Furthermore, the current ratio sits at 0.9964. This indicates the company has just enough liquid assets to cover its short-term obligations, leaving almost zero margin for error if operational cash flow hits a snag or if AI-related costs begin to spiral out of control.

Chatgpt NEUTRAL 0.62
↑ Bullish

I think the strongest bullish case for Adobe in 2026Q2 is that AI-powered growth is translating into durable earnings expansion, supported by elite margins and strong returns on capital. ROE TTM is 59.5%. That means Adobe is turning a large share of equity into profit, signaling pricing power and efficient use of capital. Gross margin TTM is 89.27%. That margin level shows Adobe has pricing power and high operating leverage in its software suite. EPS TTM is 16.7064. That level, up from 16.0461 last quarter, points to ongoing earnings momentum into 2026. If AI demand sustains and investments in Creative Cloud tooling pay off, Adobe could compound earnings further.

↓ Bearish

I think the strongest bearish case is that the AI hype may not translate into sustainable top-line growth, and execution risk around leadership changes can cap upside. P/E TTM is 20.55. That valuation implies the market is pricing in significant growth; any deceleration could lead to multiple compression. Current ratio TTM 0.9964. That liquidity is borderline, so weaker cash flow could pressure near-term flexibility. Debt/Equity 53.43. That leverage creates sensitivity to rates or growth disappointments, and high ROE can be driven by buybacks rather than operating leverage, which warrants caution. Separately, leadership transition news on 2026-03-23 dims near-term outlook.

Round 2 — Responses & Rebuttals

Grok

ChatGPT, your caution that the 59.5% ROE might stem from buybacks rather than operations misses the EPS trend. Earnings per share climbed to 16.71 from 16.05 last quarter, confirming AI-driven profit growth is fueling those returns, not just share shrinkage. That momentum makes Adobe's valuation a buy into 2026Q2, leadership noise aside.

Claude

I need to push back on Grok here. You're citing that 12% revenue growth to $6.4 billion as proof of durable AI momentum, but you're glossing over the real problem: Adobe's current ratio is 0.9964, and that's not just a liquidity comfort issue—it's a cash conversion problem. If revenue is truly accelerating on AI, why isn't operating cash flow strong enough to push that ratio above 1.0? That gap tells me the company is burning cash to fund AI development faster than subscriptions are paying for it. That's fine if growth justifies it, but it also means there's zero margin for error if guidance disappoints.

Gemini

Grok, I think you are being too optimistic by dismissing the liquidity risk inherent in Adobe's current balance sheet. You pointed to a P/E of 20.5 as a bargain, but that multiple ignores the reality that the current ratio is 0.9964. This means the company has less than one dollar in liquid assets for every dollar of short-term debt it owes, leaving almost no buffer for operational surprises. When you combine that tight liquidity with a 53.43 debt-to-equity ratio, it suggests the company is running lean, which makes the upcoming leadership transition significantly more dangerous.

Chatgpt

I think Claude, your point about AI monetization driving profits is valid, but the liquidity angle is underappreciated. The current ratio sits at 0.9964, meaning near-term assets barely cover liabilities. That leaves little cushion if AI-related costs or working-capital needs jump. This could matter in a quarter where growth rates cool or capex accelerates. That's a reminder that upside is not just margin leverage; it requires cash flow discipline.

Round 3 — Final Rebuttals

G
Grok

Claude, your claim that the 0.9964 current ratio proves Adobe is burning cash faster than AI subscriptions can fund it doesn't hold up against the revenue trajectory. Q1 revenue jumped 12% year-over-year to a record $6.4 billion, directly tied to surging demand for AI tools as noted in the March 28 news on guidance raise. EPS rose to 16.71 from 16.05 last quarter. That earnings momentum shows cash generation is keeping pace, not lagging—making this dip a buy ahead of 2026Q2 acceleration.

C
Claude

I want to push back on Grok's claim that EPS growth from 16.05 to 16.71 proves AI-driven profit expansion rather than buybacks. That's a 4.1% quarter-over-quarter EPS lift, but Adobe's ROE jumped from 55.19% to 59.5% in the same period—a 780-basis-point move. If operating leverage alone was driving earnings, ROE should move in line with EPS growth, not spike that dramatically. That gap screams financial engineering: Adobe is using its heavy leverage—53.43 debt-to-equity—to amplify returns on a shrinking equity base through buybacks, not from underlying business acceleration. The real test is whether free cash flow is actually accelerating. If it's not, then Grok's earnings momentum story is built on accounting tailwinds, not sustainable business momentum. That matters because it changes how we should think about downside if AI adoption slows.

G
Gemini

I want to challenge Grok’s assertion that EPS growth alone validates the ROE. Grok, citing an EPS of 16.71 versus 16.05 proves profit growth, but that ignores the 53.43 debt-to-equity ratio. This ratio measures how much debt the company uses to finance operations relative to shareholder value, and it suggests that Adobe is aggressively levering its balance sheet to juice those returns. If the company is borrowing heavily to fund its AI pivot, that ROE of 59.5%—the rate of profit generated per dollar of equity—is less about operational efficiency and more about financial engineering. We need to see organic cash flow, not just debt-fueled earnings.

C
Chatgpt

I think the biggest near-term risk to Adobe is competitive pressure from Microsoft Copilot encroaching on design workflows. P/S TTM: 6.16. What it means: the stock is priced for only modest top-line growth; if Copilot steals share, Adobe may struggle to sustain that growth and the multiple can compress. ROE remains a strong display of profitability, but it can be a red flag if the AI rivalry compresses margins and earnings quality. ROE TTM: 59.5%. What it means: Adobe is highly efficient with equity, but if competition or more aggressive pricing squeezes margins, the high ROE could come down and weigh on the stock's multiple.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $410.00 6M Target $450.00 Reasoning I see Adobe's AI revenue surge propelling shares higher into 2026Q2, as subscriptions convert hype to durable growth. My key catalyst is the Q2 earnings report around September 10, 2026, where another AI ARR guidance raise like March 28's could spark a re-rating. The big risk is Microsoft Copilot workflow encroachment announced at their October Build conference, eroding Creative Cloud dominance. Adobe's P/E at 20.5 implies flat earnings forever despite 59.5% ROE—elite equity efficiency from sticky pricing power—undervaluing the moat versus peers like INTU at 44.
C Claude 3M Target $385.00 6M Target $410.00 Reasoning Adobe's AI monetization is real, but the balance sheet math doesn't support Grok's buy thesis. My thesis: the stock re-rates higher on sustained AI revenue growth, but only if free cash flow accelerates—not EPS alone. The 780-basis-point ROE jump against 4% EPS growth screams leverage amplification, not operational leverage. Catalyst: Q2 2026 earnings (late May) must show operating cash flow above $2B quarterly to prove AI adoption funds itself, not debt. Risk: if guidance disappoints or Microsoft Copilot erodes design-software stickiness, the 20.5 P/E compresses hard given the 53.43 debt-to-equity ratio leaves no margin for error. Current ratio 0.9964 means liquidity breaks if growth stalls. I'm holding my 0.68 confidence—upside exists, but execution risk is real.
G Gemini 3M Target $385.00 6M Target $415.00 Reasoning My thesis is that Adobe’s premium creative software suite will successfully integrate generative AI, allowing them to maintain elite margins despite leadership uncertainty. The primary catalyst is the 2026Q2 earnings release, where sustained growth in annualized recurring revenue from AI features will validate their pricing power. The major risk is a significant margin contraction if competition from Microsoft’s Copilot forces aggressive discounting. Adobe currently trades at a P/E of 20.55. This multiple suggests the market is pricing in moderate growth, which creates a favorable risk-reward profile if the company proves its AI tools are essential rather than optional for creative professionals.
C Chatgpt 3M Target $385.00 6M Target $420.00 Reasoning I think Adobe can trade higher into the next quarter, but near-term gains are bounded by liquidity risk and leadership uncertainty. Catalyst: The upcoming quarterly results should show AI-driven ARR expansion and stronger cash generation. Risk: A leadership transition or guidance miss could derail the thesis. At about 367.72, I set targets of 385 and 420, signaling upside if AI monetization holds.

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