ADBE Stock Analysis: Adobe Systems | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 94.307m USD | 12M Return: -43% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.26B
EPS Trend: 97.9%
Qual. Beats: 15
Rev. Trend: 100.0%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Adobe Inc. (NASDAQ: ADBE) is a U.S. large-cap application software company in the information technology sector, founded in 1982, headquartered in San Jose, California, and publicly traded since 1986. It operates through three reporting segments: Digital Media (creative and document tools used by photographers, video editors, designers, game developers, and marketers), Digital Experience (an integrated customer experience, analytics, and commerce platform serving brands, agencies, publishers, and merchants), and Publishing and Advertising (e-learning, technical document publishing, web conferencing, and Adobe Advertising solutions). The company distributes its products directly via adobe.com and app stores as well as through distributors, retailers, systems integrators, value-added resellers, and OEMs, and offers consulting, training, customer management, and technical support services. Its offerings are delivered predominantly under subscription and cloud-based licensing arrangements typical of the enterprise software industry, supporting a recurring-revenue model. Adobe also operates an online visibility management and content marketing SaaS platform and has a strategic alliance with HUMAIN focused on the development of generative AI models and AI-powered applications. The company was formerly known as Adobe Systems Incorporated and adopted its current name in October 2018.
- Firefly AI monetization accelerates Creative Cloud revenue growth
- Digital Experience margins pressured by enterprise spending slowdown
- Capital returns via buybacks support diluted EPS growth
| Net Income: 7.23b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.36 > 0.02 and ΔFCF/TA 1.93 > 1.0 |
| NWC/Revenue: -11.95% < 20% (prev -0.27%; Δ -11.68% < -1%) |
| CFO/TA 0.36 > 3% & CFO 10.8b > Net Income 7.23b |
| Net Debt (1.86b) to EBITDA (9.94b): 0.19 < 3 |
| Current Ratio: 0.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (402.0m) vs 12m ago -7.16% < -2% |
| Gross Margin: 89.12% > 18% (prev 89.25%; Δ -0.13% > 0.5%) |
| Asset Turnover: 86.83% > 50% (prev 80.41%; Δ 6.42% > 0%) |
| Interest Coverage Ratio: 68.0 > 6 (EBIT TTM 9.18b / Interest Expense TTM 135.0m) |
| A: -0.10 (Total Current Assets 9.07b - Total Current Liabilities 12.1b) / Total Assets 29.9b |
| B: 1.63 (Retained Earnings 48.8b / Total Assets 29.9b) |
| C: 0.32 (EBIT TTM 9.18b / Avg Total Assets 29.0b) |
| D: 0.63 (Book Value of Equity 11.5b / Total Liabilities 18.4b) |
| Altman-Z'' = 7.43 = AAA |
| DSRI: 1.03 (Receivables 1.99b/1.74b, Revenue 25.2b/22.6b) |
| GMI: 1.00 (GM 89.25% / 89.12%) |
| AQI: 1.03 (AQ_t 0.62 / AQ_t-1 0.60) |
| SGI: 1.11 (Revenue 25.2b / 22.6b) |
| TATA: -0.12 (NI 7.23b - CFO 10.8b) / TA 29.9b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of July 24, 2026, the stock is trading at USD 212.17 with a total of 4,284,129 shares traded. Over the past week, the price has changed by -9.83%, over one month by +7.47%, over three months by -11.22% and over the past year by -43.04%.
Current recommended Stop Loss: 200.10 (which is 5.7% or 1.2 ATR below the current price).
Adobe Systems has received a consensus analysts rating of 4.16. Therefore, it is recommended to buy ADBE.
- StrongBuy: 19
- Buy: 6
- Hold: 13
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 272.5 | 28.4% |
P/E Trailing = 13.5649
P/E Forward = 9.7276
P/S = 3.7426
P/B = 8.1878
P/EG = 0.6486
Revenue TTM = 25.2b USD
EBIT TTM = 9.18b USD
EBITDA TTM = 9.94b USD
Long Term Debt = 4.80b USD (from longTermDebt, last quarter)
Short Term Debt = 1.93b USD (from shortTermDebt, last quarter)
Debt = 7.49b USD (from shortLongTermDebtTotal, last quarter) + Leases 420.0m
Net Debt = 1.86b USD (calculated: Debt 7.49b - CCE 5.63b)
Enterprise Value = 96.2b USD (94.3b + Debt 7.49b - CCE 5.63b)
Interest Coverage Ratio = 68.0 (Ebit TTM 9.18b / Interest Expense TTM 135.0m)
EV/FCF = 9.05x (Enterprise Value 96.2b / FCF TTM 10.6b)
FCF Yield = 11.05% (FCF TTM 10.6b / Enterprise Value 96.2b)
FCF Margin = 42.17% (FCF TTM 10.6b / Revenue TTM 25.2b)
Net Margin = 28.69% (Net Income TTM 7.23b / Revenue TTM 25.2b)
Gross Margin = 89.12% ((Revenue TTM 25.2b - Cost of Revenue TTM 2.74b) / Revenue TTM)
Gross Margin QoQ = 89.20% (prev 89.07%)
Tobins Q-Ratio = 3.21 (Enterprise Value 96.2b / Total Assets 29.9b)
Interest Expense / Debt = 1.80% (Interest Expense 135.0m / Debt 7.49b)
Taxrate = 20.66% (1.88b / 9.11b)
NOPAT = 7.28b (EBIT 9.18b * (1 - 20.66%))
Current Ratio = 0.75 (Total Current Assets 9.07b / Total Current Liabilities 12.1b)
Debt / Equity = 0.65 (Debt 7.49b / totalStockholderEquity, last quarter 11.5b)
Debt / EBITDA = 0.19 (Net Debt 1.86b / EBITDA 9.94b)
Debt / FCF = 0.17 (Net Debt 1.86b / FCF TTM 10.6b)
Total Stockholder Equity = 11.6b (last 4 quarters mean from totalStockholderEquity)
RoA = 24.91% (Net Income 7.23b / Total Assets 29.9b)
RoE = 62.39% (Net Income TTM 7.23b / Total Stockholder Equity 11.6b)
RoCE = 56.02% (EBIT 9.18b / Capital Employed (Equity 11.6b + L.T.Debt 4.80b))
RoIC = 39.31% (NOPAT 7.28b / Invested Capital 18.5b)
WACC = 8.84% (E(94.3b)/V(102b) * Re(9.43%) + D(7.49b)/V(102b) * Rd(1.80%) * (1-Tc(0.21)))
Discount Rate = 9.43% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.43 | Cagr: -5.45%
[DCF] Terminal Value 75.99% ; FCFF base≈10.2b ; Y1≈11.4b ; Y5≈15.9b
[DCF] Fair Price = 553.0 (EV 222b - Net Debt 1.86b = Equity 220b / Shares 397.5m; r=8.84% [WACC]; 5y FCF grow 12.61% → 2.50% )
EPS Correlation: 97.94 | EPS CAGR: 13.61% | SUE: 3.19 | # QB: 15
Revenue Correlation: 99.98 | Revenue CAGR: 10.85% | SUE: 0.92 | # QB: 1
EPS current Quarter (2026-08-31): EPS=6.08 | Chg30d=+5.28% | Revisions=+89% | Analysts=28
EPS current Year (2026-11-30): EPS=24.42 | Chg30d=+3.66% | Revisions=+90% | GrowthEPS=+16.6% | GrowthRev=+11.6%
EPS next Year (2027-11-30): EPS=27.53 | Chg30d=+4.21% | Revisions=+90% | GrowthEPS=+12.7% | GrowthRev=+8.9%
[Analyst] Revisions Ratio: +96% (up=78, down=0)