Adobe Inc. (ADBE) AI Stock Analysis

Adobe Inc., along with its subsidiaries, operates globally as a diversified software company structured into three main segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment provides tools for individuals, teams, and enterprises to create, publish, and promote content, centered around the Creative Cloud subscription service and Document Cloud document services. The Digital Experience segment offers an integrated platform and suite of applications for brands to manage and optimize customer experiences across analytics, commerce, and other workflows. The Publishing and Advertising segment provides e-learning solutions, technical document publishing, web conferencing, and Advertising Cloud services. Adobe distributes its products worldwide through direct sales, local offices, app stores, its website, and distribution partners.

Adobe grew annual revenue from $15.79B in FY2021 to $23.77B in FY2025, reflecting a 5-year revenue CAGR of 13.1%. Annual net income rose from $4.82B in FY2021 to $7.13B in FY2025, with net margin finishing at 30.0% compared to 30.5% in FY2021. Gross margin expanded from 88.2% in FY2021 to 89.3% in FY2025, while operating margin was 36.6% in FY2025 versus 36.8% in FY2021. For the trailing twelve months ended August 31, 2026, revenue totaled $25.97B, operating margin stood at 34.8%, and EPS was $17.91. In the latest quarter, quarterly revenue grew 12.9% year-over-year, and quarterly earnings grew 10.5%.

As of August 31, 2026, Adobe held $5.64B in cash and short-term investments against total debt of $6.76B, resulting in net debt of $1.12B. Total assets stood at $29.98B and shareholders' equity was $11.76B, with a debt-to-equity ratio of 0.57 and a current ratio of 0.77. Operating cash flow reached $10.03B and free cash flow reached $9.85B in FY2025. Adobe allocated $179.0M to capital expenditures and deployed $11.28B toward share buybacks in FY2025, with a 5-year share count change of -17.7%.

At its closing price of $245.20 on October 16, 2026, Adobe had a market capitalization of $95.43B and an enterprise value of $96.80B. The stock trades at a trailing P/E of 13.7x and a forward P/E of 8.7x, below the median of its Nasdaq-100 Technology peers of 43.3x and 25.7x, respectively. Adobe trades at an enterprise value-to-revenue of 3.7x, compared to a price-to-sales median of 12.4x for its peer group. The stock fell 25.5% over the prior year, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock declined 59.8%, while the S&P 500 rose 83.0%.

Wall Street analyst recommendations comprise 5 Strong Buy, 4 Buy, 24 Hold, 1 Sell, and 5 Strong Sell ratings. The mean price target is $272.31, representing an upside of 11.1% from the last close of $245.20. For FY2026 ending November 30, 2026, consensus estimates project revenue of $26.61B and EPS of $24.48, representing 16.9% EPS growth. For FY2027, 37 analysts project revenue of $29.04B and EPS of $27.51. Adobe beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for December 9, 2026.

This page is an AI-written research summary of Adobe Inc. (ADBE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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