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$237.25
Market Capi
$94B
Growth-adj P/E (3-yr hist)i
1.3x
Growth-adj P/E (3-yr proj)i
1.0x
P/S 26Ei
3.5x
P/S 28Ei
3.0x
EV/EBIT 26Ei
7.8x
EV/EBIT 28Ei
6.4x
P/E 26Ei
13x
P/E 28Ei
9.6x
P/S 26Ei
3.5x
EV/EBIT 26Ei
7.8x
P/E 26Ei
13x
P/S 28Ei
3.0x
EV/EBIT 28Ei
6.4x
P/E 28Ei
9.6x
Revenue
2026E
$26B
Gross Margini
89%
Hist. CAGRi
11%
Proj. CAGRi
9.5%
EBIT
2026E
$12B
Op. Margini
37%
Hist. CAGRi
13%
Proj. CAGRi
17%
Net profit
2026E
$7.4B
Net Margini
30%
Hist. CAGRi
14%
Proj. CAGRi
9.3%
Business Model
Recent Developments
Average Targeti
$280.66+28%
Consensusi
Outperform
39 analysts covering
Net cashi
$769M
Div. Yieldi
n/a
Buyback Yldi
4.9%
Market Capi
$94B
P/E 26Ei
13x
Adj. P/E (fwd.)i
1.0x
Revenue 26E
$26B
Proj. CAGRi
9.5%
Gross Margini
89%
EBIT 26E
$12B
Proj. CAGRi
17%
Op. Margini
37%
Net Profit 26E
$7.4B
Proj. CAGRi
9.3%
Net Margini
30%
Average Targeti
$280.66+28%
Consensusi
Outperform
39 analysts covering
Profile
Adobe operates as a subscription-based software company across two primary business segments:
Subscriptions account for over 96% of total revenue, making the model highly recurring and predictable.
Industry
Adobe sells to a wide spectrum: individual creative professionals and students at the consumer end, SMBs using Creative Cloud and Acrobat, and large enterprise teams using Experience Cloud for digital marketing infrastructure. Geographically, the US represents ~53% of revenue, with EMEA at ~27% and Asia-Pacific at ~14%. The creative software market has high retention — workflows are deeply embedded — and the enterprise marketing technology market is both large and competitive, with rivals including Salesforce, SAP, and Oracle.
Key metrics
Economic moat
Adobe's structural advantages center on deep workflow lock-in across professional creative toolchains. Photoshop, Illustrator, and Premiere Pro are industry-standard file formats and skills — switching costs extend beyond software preference to professional retraining and file compatibility. The PDF format and Acrobat ecosystem create a separate embedded utility moat in document workflows. At the enterprise layer, Adobe Experience Platform integrates data, content, and activation in ways that are costly and disruptive to replace. The Firefly AI platform, built on licensed content, differentiates Adobe from generative AI competitors facing ongoing IP litigation risk.
Shantanu Narayen
Narayen has served as CEO since November 2007 and is one of the most consequential technology CEOs of the past two decades. He orchestrated Adobe's transformation from a perpetual-license software company into a subscription-first cloud business — a transition that multiplied revenue and margins while compressing customer churn. In March 2026 he announced he would step down as CEO once a successor is named, while remaining as Chairman. His departure ends an 18-year run that also saw the failed acquisition attempt of Figma (blocked by regulators in 2023).
Daniel Durn
Durn joined Adobe as CFO in October 2021, bringing experience from prior finance leadership roles at Applied Materials and other technology companies. He has overseen Adobe's capital allocation discipline, including the April 2026 $25 billion buyback authorization, and has managed investor communication through the stock's sharp decline from 2021 peak valuations.
Lucius DiPhillips
DiPhillips was appointed CTO in January 2026, a notable timing given the AI-competitive landscape and the concurrent CEO transition. His appointment signals Adobe's intent to strengthen technical leadership at the product and platform level, particularly around Firefly, the AI-native creative platform, and Adobe Experience Platform.
Other key figures
Adobe's board includes Frank Calderoni (Lead Independent Director, now chairing the CEO succession committee) and Dheeraj Pandey (founder of Nutanix), adding relevant enterprise software and AI infrastructure perspective to board oversight during the transition period.
P/S Ratioi
EV/EBITi
P/E Ratioi
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in billions of USD.
Operating cashflow · Levered Free Cash Flow
Free Cash Flow
CAPEX
Values in billions of USD.
Margins
Rentability
Balance sheet
Values in billions of USD.
Liquidity ratios
Debt-to-Equity-Ratio
Last earnings
Adobe reported Q1 FY2026 revenue of $6.4 billion, up 12% year over year, beating consensus estimates. Subscription revenue grew 13% YoY, with AI-first annualized recurring revenue more than tripling year over year — the standout growth metric of the quarter.
Non-GAAP EPS of $6.06 came in above expectations, continuing a streak of four consecutive quarters of consensus beats. Creative and Marketing Professionals subscription revenue grew 12% YoY; Business Professionals and Consumers subscription revenue accelerated to 16% YoY growth.
Management highlighted strong AI product adoption as a key driver and reiterated confidence in the full-year outlook, though the simultaneous announcement of the CEO transition drew more market attention than the financials themselves.
Recent developments
On March 12, 2026, Adobe announced that CEO Shantanu Narayen will step down once a successor is appointed, ending an 18-year tenure. Narayen will remain as Chair of the Board. Lead Independent Director Frank Calderoni is heading the search committee, which is considering both internal and external candidates. No timeline has been disclosed.
On April 21, 2026, Adobe's board approved a new $25 billion stock repurchase authorization through April 30, 2030 — a significant capital return signal given the stock's steep decline from its 2021 highs.
Adobe also expanded integrations for Firefly, Acrobat Studio, and Express during Q1, deepening its AI-native product surface. Monthly active users across creative products surpassed 850 million, growing 17% YoY, with Creative freemium MAU crossing 80 million, up 50% YoY.
Debate & sentiment
Bulls point to the accelerating AI monetization — tripling AI-first ARR — as evidence that Adobe can convert its massive installed base into AI upsell revenue without cannibalizing core subscriptions. The compressed valuation, strong free cash flow yield, and analyst consensus of Outperform suggest the market may be discounting the durable franchise.
Bears argue that generative AI is a structural threat, not a tailwind: tools like Midjourney, Stable Diffusion, and OpenAI's image products could displace entry-level creative users before Adobe fully captures the AI upgrade cycle. The CEO transition adds execution uncertainty at a critical juncture.
The key sentiment swing factor is whether AI-first ARR growth is a pull-forward of existing Creative Cloud users upgrading, or genuine new monetization. If Adobe's Q2 and Q3 results show AI ARR continuing to compound while core subscriber growth holds, the bear case weakens materially.
Consensusi
Outperform
Average targeti
$280.66+28%
Highest targeti
$460.00+109%
Lowest targeti
$190.00-14%
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