ADBE — Adobe Inc. $205.02

Generated 2026-06-30 21:50

Quality Scorecard Transitional

B79/100
Pricing power (gross margin) 89% Gross margin 89% — wide margins, likely pricing power
Return on equity 63% ROE 63% — high returns on capital
Leverage (net debt / EBITDA) 0.1x Net debt / EBITDA 0.1x — low leverage
Interest coverage 33x EBIT covers interest 33x — comfortably covered
Earnings consistency (revenue) 0/3 down 0 revenue-down year(s) in 3 — no down years
Earnings growth (net income YoY) +28% Net income +28% YoY — earnings growing
Cash conversion (CFO/NI) 141% Operating cash ÷ net income 141% — earnings convert to cash
Operating margin trend eroding Operating margin eroding
🟡 Revenue growth 13% Revenue +13% — moderate growth
🟡 Growth trajectory holding steady YoY +11% vs +11% prior 2-yr avg — holding steady
Free cash flow margin 41% FCF margin 41% — strong cash generation
🟡 Returns capital to shareholders yes no dividend; shares -12.6%/yr

Transitional-stage checklist (proxy metrics from yfinance). 12 of 12 criteria scored. Not financial advice.

Buy-Now Score

79/100
Quality ×40%79
Trajectory ×30%65
Valuation ×30%93

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$184.52$384.99
Price $205.02DCF $349.99 (+71%)Analyst $279.87 (+37%)MarketGist fair $293.89 (+43%)

DCF: 11% start growth → 2.5%, 11.5% discount (band $288.51–$454.48). Analyst: 33 analysts. MarketGist fair = 80% analyst + 20% DCF. Not financial advice.

Key Trends (6-yr)

GAAP EPS
▲ +35.1% YoY
Sales
▲ +10.5% YoY
Shares Outstanding
▼ -5.1% YoY

Company Overview

Basic Information

Company Name: Adobe Inc.
Symbol: ADBE
Exchange: NMS
Sector: Technology
Industry: Software - Application

Company Details

Country: United States
City: San Jose
Employees: 31,360
Market Cap: $81.50B

Business Description

Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content. This segment serves photographers, video editors, graphic and experience designers, game developers, content creators, students, marketers, business owners, knowledge workers, and consumers. The Digital Experience segment provides an integrated platform; and products, services, and solutions that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers e-learning, technical document publishing, web conferencing, document and forms platform, web application development, printing, and Adobe Advertising solutions. It also provides consulting, training, customer management, technical support, and learning services. The company offers its solutions to enterprise customers, and businesses and consumers; and licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added resellers, and original equipment and hardware manufacturers. The company also provides an online visibility management and content marketing software-as-a-service platform. The company has a strategic alliance with HUMAIN for the development of generative AI models and AI-powered applications. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

Key Metrics

Price & Valuation

Current Price
$205.02
Market Cap
$81.50B
P/E Ratio
11.73
Forward P/E
7.44
PEG Ratio
0.55
Price to Book
7.10

Profitability

Profit Margin: 28.69%
Operating Margin: 35.33%
Gross Margin: 89.40%
Return on Equity (ROE): 62.95%
Return on Assets (ROA): 19.93%
Revenue Growth: 12.70%

Financial Health

Current Ratio: 0.75
Quick Ratio: 0.63
Debt to Equity: 61.44
Total Debt: $7.08B
Total Cash: $5.63B
Beta: 1.40

Trading & Analyst Info

52-Week Range

52-Week High: $392.58
52-Week Low: $190.12
50-Day Average: $237.01
200-Day Average: $290.73

Analyst Recommendations

Recommendation: HOLD
Target Mean Price: $279.87
Target High: $460.00
Target Low: $190.00

Price graph

Price vs Rates, Inflation & Volume (long-term)

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Quarterly Verdict

🟢 79/100

Worth buying

Quality grade B; 3 improving / 3 weakening metrics YoY.

➕ Pricing power (gross margin): Gross margin 89% — wide margins, likely pricing power
➕ Return on equity: ROE 63% — high returns on capital
➕ Leverage (net debt / EBITDA): Net debt / EBITDA 0.1x — low leverage
➕ Interest coverage: EBIT covers interest 33x — comfortably covered
➕ Earnings consistency (revenue): 0 revenue-down year(s) in 3 — no down years
➕ Earnings growth (net income YoY): Net income +28% YoY — earnings growing
➕ Cash conversion (CFO/NI): Operating cash ÷ net income 141% — earnings convert to cash
➖ Operating margin trend: Operating margin eroding
➕ Free cash flow margin: FCF margin 41% — strong cash generation
➕ Revenue +12.7% YoY
➕ Net income +1.2% YoY
➖ Operating margin -2.1 pts YoY
➖ Free cash flow -1.7% YoY
➖ Debt +7.6% YoY
➕ Shares outstanding -6.6% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item2025-11-302024-11-302023-11-302022-11-30
Tax Effect Of Unusual Items$4.86M$-196.40M$-1.60M$-8.40M
Tax Rate For Calcs$0.18$0.20$0.20$0.21
Normalized EBITDA$9.79B$8.94B$7.79B$7.02B
Total Unusual Items$27.00M$-982.00M$-8.00M$-40.00M
Total Unusual Items Excluding Goodwill$27.00M$-982.00M$-8.00M$-40.00M
Net Income From Continuing Operation Net Minority Interest$7.13B$5.56B$5.43B$4.76B
Reconciled Depreciation$818.00M$857.00M$872.00M$856.00M
Reconciled Cost Of Revenue$1.89B$1.67B$1.65B$1.48B
EBITDA$9.81B$7.96B$7.78B$6.98B
EBIT$9.00B$7.10B$6.91B$6.12B
Net Interest Income$1.00M$172.00M$156.00M$-51.00M
Interest Expense$263.00M$169.00M$113.00M$112.00M
Interest Income$264.00M$341.00M$269.00M$61.00M
Normalized Income$7.11B$6.35B$5.43B$4.79B
Net Income From Continuing And Discontinued Operation$7.13B$5.56B$5.43B$4.76B

Showing 15 of 51 rows

Balance Sheet (Annual)

Item2025-11-302024-11-302023-11-302022-11-302021-11-30
Treasury Shares Number$188.00M$160.00M$146.00M$139.00MN/A
Ordinary Shares Number$413.00M$441.00M$455.00M$462.00MN/A
Share Issued$601.00M$601.00M$601.00M$601.00MN/A
Net Debt$779.00MN/AN/AN/A$279.00M
Total Debt$6.65B$6.06B$4.08B$4.63BN/A
Tangible Book Value$-1.73B$535.00M$2.62B$-185.00MN/A
Invested Capital$17.83B$19.73B$20.15B$18.18BN/A
Working Capital$-37.00M$711.00M$2.83B$868.00MN/A
Net Tangible Assets$-1.73B$535.00M$2.62B$-185.00MN/A
Capital Lease Obligations$438.00M$428.00M$446.00M$504.00MN/A
Common Stock Equity$11.62B$14.11B$16.52B$14.05BN/A
Total Capitalization$17.83B$18.23B$20.15B$17.68BN/A
Total Equity Gross Minority Interest$11.62B$14.11B$16.52B$14.05BN/A
Stockholders Equity$11.62B$14.11B$16.52B$14.05BN/A
Gains Losses Not Affecting Retained Earnings$-245.00M$-201.00M$-285.00M$-293.00MN/A

Showing 15 of 80 rows

Cash Flow Statement (Annual)

Item2025-11-302024-11-302023-11-302022-11-302021-11-30
Free Cash Flow$9.85B$7.87B$6.94B$7.40BN/A
Repurchase Of Capital Stock$-11.28B$-9.50B$-4.40B$-6.55BN/A
Repayment Of Debt$-1.50B$0.00$-500.00M$0.00N/A
Issuance Of Debt$2.00B$2.00B$0.00$0.00N/A
Issuance Of Capital Stock$348.00M$361.00M$314.00M$278.00MN/A
Capital Expenditure$-179.00M$-183.00M$-360.00M$-442.00MN/A
Interest Paid Supplemental Data$246.00M$143.00M$106.00M$103.00MN/A
Income Tax Paid Supplemental Data$2.22B$1.73B$1.85B$778.00MN/A
End Cash Position$5.43B$7.61B$7.14B$4.24BN/A
Beginning Cash Position$7.61B$7.14B$4.24B$3.84BN/A
Effect Of Exchange Rate Changes$34.00M$-9.00M$9.00M$-51.00MN/A
Changes In Cash$-2.22B$481.00M$2.90B$443.00MN/A
Financing Cash Flow$-11.06B$-7.72B$-5.18B$-6.83BN/A
Cash Flow From Continuing Financing Activities$-11.06B$-7.72B$-5.18B$-6.83BN/A
Net Other Financing Charges$-624.00M$-582.00M$-596.00M$-553.00MN/A

Showing 15 of 57 rows

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