ADBE Stock Analysis: Adobe | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 95.432m USD | 12M Return: -28.7% | US00724F1012 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 979M
EPS Trend: 97.7%
Qual. Beats: -1
Rev. Trend: 100.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 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. is a global technology company headquartered in San Jose, California, that operates through three main segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment provides tools for content creation and publishing, serving a broad base of users ranging from individual creators and students to large enterprises. The Digital Experience segment offers an integrated platform for brands to manage, measure, and optimize customer experiences, targeting roles across marketing, analytics, merchandising, and executive leadership. The Publishing and Advertising segment delivers solutions for e-learning, document publishing, web conferencing, web application development, printing, and advertising, along with consulting, training, and support services. The company distributes its products through multiple channels, including its own website, app stores, distributors, retailers, systems integrators, and hardware manufacturers. Adobe also maintains a strategic alliance with HUMAIN focused on generative AI development. Founded in 1982 and formerly known as Adobe Systems Incorporated, the company is a large-cap constituent of the Information Technology sector, listed on the NASDAQ under the ticker ADBE.
- Firefly AI drives Creative Cloud subscriber upgrades and pricing power
- Digital Experience segment faces Salesforce and HubSpot competition
- Figma acquisition blocked, raising M&A regulatory concerns
- Enterprise IT spending slows Digital Experience bookings growth
- Adobe stock buybacks offset dilution from high stock-based compensation
| Net Income: 7.28b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.35 > 0.02 and ΔFCF/TA 1.95 > 1.0 |
| NWC/Revenue: -10.51% < 20% (prev 0.75%; Δ -11.26% < -1%) |
| CFO/TA 0.36 > 3% & CFO 10.8b > Net Income 7.28b |
| Net Debt (1.52b) to EBITDA (10.2b): 0.15 < 3 |
| Current Ratio: 0.77 > 1.5 & < 3 |
| Outstanding Shares: last quarter (395.0m) vs 12m ago -8.14% < -2% |
| Gross Margin: 89.10% > 18% (prev 89.14%; Δ -0.04% > 0.5%) |
| Asset Turnover: 88.43% > 50% (prev 80.62%; Δ 7.81% > 0%) |
| Interest Coverage Ratio: 36.43 > 6 (EBIT TTM 9.47b / Interest Expense TTM 260.0m) |
| A: -0.09 (Total Current Assets 9.16b - Total Current Liabilities 11.9b) / Total Assets 30.0b |
| B: 1.69 (Retained Earnings 50.6b / Total Assets 30.0b) |
| C: 0.32 (EBIT TTM 9.47b / Avg Total Assets 29.4b) |
| D: 0.65 (Book Value of Equity 11.8b / Total Liabilities 18.2b) |
| Altman-Z'' = 7.75 = AAA |
| DSRI: 0.89 (Receivables 2.08b/2.09b, Revenue 26.0b/23.2b) |
| GMI: 1.00 (GM 89.14% / 89.10%) |
| AQI: 1.05 (AQ_t 0.62 / AQ_t-1 0.60) |
| SGI: 1.12 (Revenue 26.0b / 23.2b) |
| TATA: -0.12 (NI 7.28b - CFO 10.8b) / TA 30.0b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of October 22, 2026, the stock is trading at USD 255.06 with a total of 3,078,619 shares traded. Over the past week, the price has changed by +5.97%, over one month by +2.22%, over three months by +12.28% and over the past year by -28.66%.
Current recommended Stop Loss: 244.50 (which is 4.1% or 1.2 ATR below the current price).
Adobe has received a consensus analysts rating of 3.08. Therefore, it is recommended to hold ADBE.
- StrongBuy: 5
- Buy: 4
- Hold: 24
- Sell: 1
- StrongSell: 5
| Analysts Target Price | 272.3 | 6.8% |
P/E Trailing = 13.6907
P/E Forward = 8.726
P/S = 3.6747
P/B = 8.1328
P/EG = 0.5816
Revenue TTM = 26.0b USD
EBIT TTM = 9.47b USD
EBITDA TTM = 10.2b USD
Long Term Debt = 4.77b USD (from longTermDebt, last quarter)
Short Term Debt = 1.69b USD (from shortTermDebt, last quarter)
Debt = 7.16b USD (from shortLongTermDebtTotal, last quarter) + Leases 399.0m
Net Debt = 1.52b USD (calculated: Debt 7.16b - CCE 5.64b)
Enterprise Value = 97.0b USD (95.4b + Debt 7.16b - CCE 5.64b)
Interest Coverage Ratio = 36.43 (Ebit TTM 9.47b / Interest Expense TTM 260.0m)
EV/FCF = 9.15x (Enterprise Value 97.0b / FCF TTM 10.6b)
FCF Yield = 10.92% (FCF TTM 10.6b / Enterprise Value 97.0b)
FCF Margin = 40.79% (FCF TTM 10.6b / Revenue TTM 26.0b)
Net Margin = 28.05% (Net Income TTM 7.28b / Revenue TTM 26.0b)
Gross Margin = 89.10% ((Revenue TTM 26.0b - Cost of Revenue TTM 2.83b) / Revenue TTM)
Gross Margin QoQ = 88.12% (prev 89.20%)
Tobins Q-Ratio = 3.23 (Enterprise Value 97.0b / Total Assets 30.0b)
Interest Expense / Debt = 3.63% (Interest Expense 260.0m / Debt 7.16b)
Taxrate = 21.52% (2.00b / 9.28b)
NOPAT = 7.43b (EBIT 9.47b * (1 - 21.52%))
Current Ratio = 0.77 (Total Current Assets 9.16b / Total Current Liabilities 11.9b)
Debt / Equity = 0.61 (Debt 7.16b / totalStockholderEquity, last quarter 11.8b)
Debt / EBITDA = 0.15 (Net Debt 1.52b / EBITDA 10.2b)
Debt / FCF = 0.14 (Net Debt 1.52b / FCF TTM 10.6b)
Total Stockholder Equity = 11.6b (last 4 quarters mean from totalStockholderEquity)
RoA = 24.80% (Net Income 7.28b / Total Assets 30.0b)
RoE = 62.88% (Net Income TTM 7.28b / Total Stockholder Equity 11.6b)
RoCE = 57.93% (EBIT 9.47b / Capital Employed (Equity 11.6b + L.T.Debt 4.77b))
RoIC = 40.23% (NOPAT 7.43b / Invested Capital 18.5b)
WACC = 7.40% (E(95.4b)/V(103b) * Re(7.74%) + D(7.16b)/V(103b) * Rd(3.63%) * (1-Tc(0.22)))
Discount Rate = 7.74% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.69 | Cagr: -5.72%
[DCF] Terminal Value 76.70% ; FCFF base≈10.2b ; Y1≈11.1b ; Y5≈13.9b
[DCF] Fair Price = 541.2 (EV 212b - Net Debt 1.52b = Equity 211b / Shares 389.2m; r=8.35% [WACC [floored]]; 5y FCF grow 10.34% → 2.50% )
EPS Correlation: 97.72 | EPS CAGR: 13.11% | SUE: -2.59 | # QB: -1
Revenue Correlation: 99.95 | Revenue CAGR: 10.99% | SUE: 0.37 | # QB: 0
EPS current Quarter (2027-02-28): EPS=6.75 | Chg30d=-0.17% | Revisions=-4% | Analysts=26
EPS current Year (2026-11-30): EPS=24.48 | Chg30d=+0.36% | Revisions=+73% | GrowthEPS=+16.9% | GrowthRev=+11.9%
EPS next Year (2027-11-30): EPS=27.51 | Chg30d=-0.09% | Revisions=+32% | GrowthEPS=+12.4% | GrowthRev=+9.1%
[Analyst] Revisions Ratio: +39% (up=59, down=25)