(ADBE) Adobe Systems - Overview
Stock: Photo Editor, Video Editor, Design Suite, Marketing Cloud, Analytics Platform
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 32.6% |
| Relative Tail Risk | -10.6% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.31 |
| Alpha | -47.97 |
| Character TTM | |
|---|---|
| Beta | 0.839 |
| Beta Downside | 0.925 |
| Drawdowns 3y | |
|---|---|
| Max DD | 54.26% |
| CAGR/Max DD | -0.15 |
Description: ADBE Adobe Systems January 26, 2026
Adobe Inc. (NASDAQ:ADBE) operates globally as a technology firm organized into three primary segments: Digital Media, which supplies creative tools (e.g., Photoshop, Premiere) for individuals and enterprises; Digital Experience, an integrated suite for marketers and developers to design, manage, and monetize customer journeys; and Publishing & Advertising, which delivers e-learning, document-management, and advertising-technology solutions. The company distributes its software through direct online channels, OEMs, value-added resellers, and app stores, and it maintains a strategic partnership with HUMAIN to embed generative-AI capabilities across its product portfolio.
In fiscal 2023 Adobe generated $18.14 billion in revenue, with the Digital Media segment contributing $12.2 billion (≈ 67% of total) and posting a 13% year-over-year growth rate. The Digital Experience segment grew 15% YoY, driven by expanding subscription-based analytics and commerce services. As of the most recent quarter (Q1 FY 2024), Adobe’s annualized recurring revenue (ARR) topped $25 billion, and GAAP earnings per share rose 11% to $4.33, reflecting strong demand for its cloud-based subscriptions.
Key macro-level drivers underpinning Adobe’s outlook include: (1) sustained enterprise spending on digital transformation, which the IDC forecasts to grow at a 9% CAGR through 2027; (2) accelerating adoption of AI-generated content, where Adobe’s generative-AI initiatives are expected to boost average revenue per user (ARPU) by 4-6% annually; and (3) a rebound in digital advertising spend, with eMarketer projecting a 7% YoY increase in 2024, supporting the growth of Adobe’s Advertising solutions.
For a deeper quantitative view of Adobe’s valuation metrics, you may want to explore the ValueRay platform.
Piotroski VR‑10 (Strict, 0-10) 9.0
| Net Income: 7.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.33 > 0.02 and ΔFCF/TA 7.52 > 1.0 |
| NWC/Revenue: -0.16% < 20% (prev 3.31%; Δ -3.46% < -1%) |
| CFO/TA 0.34 > 3% & CFO 10.03b > Net Income 7.13b |
| Net Debt (1.22b) to EBITDA (9.75b): 0.12 < 3 |
| Current Ratio: 1.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (417.0m) vs 12m ago -5.87% < -2% |
| Gross Margin: 89.11% > 18% (prev 0.89%; Δ 8822 % > 0.5%) |
| Asset Turnover: 79.59% > 50% (prev 71.14%; Δ 8.46% > 0%) |
| Interest Coverage Ratio: 33.96 > 6 (EBITDA TTM 9.75b / Interest Expense TTM 263.0m) |
Altman Z'' 9.66
| A: -0.00 (Total Current Assets 10.16b - Total Current Liabilities 10.20b) / Total Assets 29.50b |
| B: 1.54 (Retained Earnings 45.35b / Total Assets 29.50b) |
| C: 0.30 (EBIT TTM 8.93b / Avg Total Assets 29.86b) |
| D: 2.52 (Book Value of Equity 45.11b / Total Liabilities 17.87b) |
| Altman-Z'' Score: 9.66 = AAA |
Beneish M -3.01
| DSRI: 1.02 (Receivables 2.34b/2.07b, Revenue 23.77b/21.50b) |
| GMI: 1.00 (GM 89.11% / 89.04%) |
| AQI: 1.05 (AQ_t 0.58 / AQ_t-1 0.56) |
| SGI: 1.11 (Revenue 23.77b / 21.50b) |
| TATA: -0.10 (NI 7.13b - CFO 10.03b) / TA 29.50b) |
| Beneish M-Score: -3.01 (Cap -4..+1) = AA |
What is the price of ADBE shares?
Over the past week, the price has changed by -2.70%, over one month by -17.42%, over three months by -13.68% and over the past year by -33.97%.
Is ADBE a buy, sell or hold?
- StrongBuy: 19
- Buy: 6
- Hold: 13
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the ADBE price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 421.3 | 43.7% |
| Analysts Target Price | 421.3 | 43.7% |
| ValueRay Target Price | 267.8 | -8.7% |
ADBE Fundamental Data Overview January 24, 2026
P/E Forward = 12.5
P/S = 5.2786
P/B = 10.3916
P/EG = 0.8331
Revenue TTM = 23.77b USD
EBIT TTM = 8.93b USD
EBITDA TTM = 9.75b USD
Long Term Debt = 6.21b USD (from longTermDebt, last quarter)
Short Term Debt = 77.0m USD (from shortTermDebt, last quarter)
Debt = 6.65b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.22b USD (from netDebt column, last quarter)
Enterprise Value = 125.52b USD (125.47b + Debt 6.65b - CCE 6.59b)
Interest Coverage Ratio = 33.96 (Ebit TTM 8.93b / Interest Expense TTM 263.0m)
EV/FCF = 12.74x (Enterprise Value 125.52b / FCF TTM 9.85b)
FCF Yield = 7.85% (FCF TTM 9.85b / Enterprise Value 125.52b)
FCF Margin = 41.45% (FCF TTM 9.85b / Revenue TTM 23.77b)
Net Margin = 30.00% (Net Income TTM 7.13b / Revenue TTM 23.77b)
Gross Margin = 89.11% ((Revenue TTM 23.77b - Cost of Revenue TTM 2.59b) / Revenue TTM)
Gross Margin QoQ = 88.92% (prev 89.28%)
Tobins Q-Ratio = 4.26 (Enterprise Value 125.52b / Total Assets 29.50b)
Interest Expense / Debt = 0.99% (Interest Expense 66.0m / Debt 6.65b)
Taxrate = 18.02% (408.0m / 2.26b)
NOPAT = 7.32b (EBIT 8.93b * (1 - 18.02%))
Current Ratio = 1.00 (Total Current Assets 10.16b / Total Current Liabilities 10.20b)
Debt / Equity = 0.57 (Debt 6.65b / totalStockholderEquity, last quarter 11.62b)
Debt / EBITDA = 0.12 (Net Debt 1.22b / EBITDA 9.75b)
Debt / FCF = 0.12 (Net Debt 1.22b / FCF TTM 9.85b)
Total Stockholder Equity = 11.98b (last 4 quarters mean from totalStockholderEquity)
RoA = 23.88% (Net Income 7.13b / Total Assets 29.50b)
RoE = 59.50% (Net Income TTM 7.13b / Total Stockholder Equity 11.98b)
RoCE = 49.09% (EBIT 8.93b / Capital Employed (Equity 11.98b + L.T.Debt 6.21b))
RoIC = 40.30% (NOPAT 7.32b / Invested Capital 18.17b)
WACC = 8.60% (E(125.47b)/V(132.11b) * Re(9.01%) + D(6.65b)/V(132.11b) * Rd(0.99%) * (1-Tc(0.18)))
Discount Rate = 9.01% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -4.68%
[DCF Debug] Terminal Value 76.93% ; FCFF base≈9.04b ; Y1≈9.65b ; Y5≈11.64b
Fair Price DCF = 437.7 (EV 180.88b - Net Debt 1.22b = Equity 179.66b / Shares 410.5m; r=8.60% [WACC]; 5y FCF grow 7.51% → 2.90% )
EPS Correlation: 87.65 | EPS CAGR: 13.95% | SUE: 4.0 | # QB: 11
Revenue Correlation: 99.91 | Revenue CAGR: 10.48% | SUE: 0.42 | # QB: 0
EPS next Quarter (2026-05-31): EPS=5.68 | Chg30d=-0.005 | Revisions Net=-13 | Analysts=27
EPS current Year (2026-11-30): EPS=23.46 | Chg30d=-0.001 | Revisions Net=+2 | Growth EPS=+12.0% | Growth Revenue=+9.5%
EPS next Year (2027-11-30): EPS=26.38 | Chg30d=+0.053 | Revisions Net=+8 | Growth EPS=+12.4% | Growth Revenue=+9.0%