As of 2026-09-10 · Last updated: 2026-09-11 · Source: SEC EDGAR (10-K, 8-K), Company FY2026 Q3 results (2026-09-10), CEO transition announcement (2026-09-03), stockanalysis (peer TTM), Company IR · Prices & financials updated periodically (not real-time) · Information tool (not investment advice)
Debt burden is moderate, so it can be affected by the economic cycle.
Metrics · D/E ~61% · Current Ratio 0.75
💲Is the price expensive now?
Not a heavy price burden
The price is set low relative to its earning power.
Metrics · P/E 13.9 · P/B 8.4
💡Subscription SaaS: 35.7% TTM operating margin, 62% ROE. Q3 revenue +13% and guidance raised, but the stock is 33% below its high after a CEO change.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: Company FY2026 Q3 results (quarter ended 2026-08-28) - margins, ROE and revenue growth are a TTM built by summing four quarters directly (the data provider's TTM still lags one quarter) - P/E and P/B on the 2026-09-10 close - debt/equity and current ratio are from the prior quarter (2026-05) balance sheet, as of 2026-09-10
Business Summary · Key Value Metrics
A subscription (SaaS) software company spanning Creative (Photoshop, Illustrator), Document (Acrobat/PDF) and Digital Experience clouds. It announced a CEO transition in September 2026. TTM revenue $25.97B, 35.7% operating margin, $27.5B total ARR.
Current Price
$248.83
-2.37%-$6.03· Close 2026-09-10
Analyst Consensus Target (external reference)
$262.28
Avg. of 40 external analysts · TradingView consensus (40 analysts, Buy, compiled 2026-09-10) - the prior figure was $280.66 from a 39-analyst stockanalysis panel rated Hold
P/E (TTM)
13.9x
TTM - on the 2026-09-10 close
ROE
62.3%
TTM on average equity
Operating margin
35.7%
TTM - 36.6% in FY2025
Net margin
28.1%
TTM
Dividend yield
0%
No dividend - 9.5M shares bought in Q3
Market cap
$98.9B
as of 2026-09-10
Economic Moat · Key Business Segments
Adobe has held a de facto industry-standard position for decades in creative software (Photoshop, Illustrator) and document software (Acrobat/PDF). Recurring revenue has dominated since the 2013 shift to the Creative Cloud subscription model, and a 35.7% TTM operating margin, 28.1% net margin and $27.5B of total ARR show it in the numbers. In fiscal Q3 2026 the company said recurring revenue from AI-first products grew more than 150% year over year (Source: company FY2026 Q3 results).
Product-standard status
Photoshop is synonymous with image editing and Acrobat/PDF with document standards, making them hard to replace.
Subscription shift and lock-in
Since the 2013 shift to Creative Cloud subscriptions, recurring subscription revenue dominates the mix.
Ecosystem integration
Workflow integration across Creative, Document, and Experience Cloud raises switching costs.
High profitability
A 35.7% TTM operating margin ranks near the top of the software industry - the result of the subscription model and scale.
10-Year Financial Trends
Adobe's revenue has compounded steadily since the 2013 subscription shift (nine-year CAGR +16.9%; FY2025 revenue $23.8B at a 36.6% operating margin). Fiscal Q3 2026, ended August 28 2026, delivered revenue of $6.76B (+13%), GAAP operating income of $2.354B and non-GAAP EPS of $6.13. Creative and Marketing subscriptions were $4.65B (+13%); Business Professionals and Consumers $1.91B (+16%). Total ARR reached $27.5B and AI-first recurring revenue grew over 150% YoY, and guidance rose. A week earlier, the September 3 CEO transition sent the stock down three sessions (Source: company results).
10-Year Growth
Revenue$23.8B · CAGR +16.8%
Operating Income$8.7B · CAGR +21.6%
EPS$16.70 · CAGR +24.5%
10-Year Valuation
P/E (year-end)19.2x · avg 41.6x
ROE55.4% · avg 38.9%
Operating Margin36.6% · avg 32.3%
📊 Annual Data Table (ADBE) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROE (%)
Op. Margin (%)
2016
5.9
1.5
2.32
—
—
25.5
2017
7.3
2.2
3.38
—
—
29.7
2018
9
2.8
5.2
—
—
31.5
2019
11.2
3.3
6
—
—
29.3
2020
12.9
4.2
10.83
—
—
32.9
2021
15.8
5.8
10.02
61.53
34.37
36.8
2022
17.6
6.1
10.1
33.81
32.97
34.6
2023
19.4
6.7
11.82
51.82
35.51
34.3
2024
21.5
6.7
12.36
41.74
36.31
31.3
2025
23.8
8.7
16.7
19.17
55.43
36.6
— = no data for that year/metric (P/E omitted before EPS turned positive)
9-Year CAGR: Revenue +16.9% · Operating Income +21.6% · Net Income +22.3% · EPS +24.5%
Sources: SEC EDGAR XBRL (companyfacts, CIK 0000796343) · stockanalysis · company IR. Fiscal-year (late November to early December) GAAP basis; EPS is diluted. Revenue, operating income, EPS, and operating margin span 2016–2025 (10 years); P/E and ROE cover the last 5 years (2021–2025, stockanalysis) due to data limits.
Mega-Cap Value Metric Comparison
Adobe's 35.7% operating margin is far ahead of Salesforce (about 21.9%) though below Microsoft (about 46.8%). At 13.9x TTM earnings it still trades below both after a continued drawdown (Adobe is on FY2026 Q3; peers are TTM. Source: company filings, stockanalysis).
Metric
★ ADBE
CRM
MSFT
Operating Margin
35.7%
21.9%
46.8%
P/E (TTM)
13.9
19.0
22.9
Dividend Yield
0%
1.03%
0.93%
Adobe = TTM summed through FY2026 Q3 (ended 2026-08-28) - peers are TTM retrieved 2026-07-13 - Source: stockanalysis, company filings.
Key Risk Factors (from 10-K)
●
Intensifying generative-AI competition— Figma, Canva and the spread of generative AI image and design tools are intensifying competition in creative software. The company said recurring revenue from AI-first products grew more than 150% year over year but did not break out the absolute amount, so it is not yet possible to verify from the numbers whether AI is defending existing revenue or adding new growth. This is the backdrop for a stock trading 33% below its 52-week high.Source: Company 10-K risk factors, FY2026 Q3 results
●
Subscription growth slowdown— Revenue growth has slid from +23% in 2021 to the +11% range in FY2025, and is around +12% on a TTM basis. Q3 revenue rose 13%, a modest reacceleration, but the beat over consensus was +1.0%, smaller than the +1.5% average of the prior six quarters.Source: Company IR, SEC EDGAR
●
Low current ratio— At 0.75x, the current ratio is below 1x, so current assets are less than current liabilities — though stable subscription cash flows tend to offset this.Source: stockanalysis
●
CEO transition and key-executive departure— On September 3 2026 Adobe announced that Shantanu Narayen, who led the company for 18 years, will step down on December 1, with Anil Chakravarthy taking over. The same announcement disclosed the departure of David Wadhwani, who ran the creative business that accounts for roughly three quarters of revenue. The stock fell 6.7% the next trading day and declined three sessions in a row. Changing the people who set product strategy in the middle of an intense AI competition is the risk here.Source: Company announcement (2026-09-03), press reports
✦ ValueCrab Dashboard PreviewADBE $248.83 -2.37% · as of 2026-09-10
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Growth
Earnings
Dividend
Cash
Revenue 10Y trend$23.8B · CAGR +16.9%
$23.8B$0.0B
20162025
P/E (TTM)13.9x
ROE62.3%
Operating margin35.7%
Net margin28.1%
Dividend yield0%
Market cap$98.9B
Revenue CAGR 9Y+16.9%
EPS CAGR 9Y+24.5%
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Value Investing FAQ (ADBE)
Q. What are Adobe's (ADBE) key value-investing metrics?P/E (TTM) 13.9x, P/B 8.41x, ROE 62.3%, operating margin 35.7%, net margin 28.1%, no dividend (buybacks instead), total ARR $27.5B (Source: company FY2026 Q3 results, as of 2026-09-10).
Q. Why doesn't Adobe pay a dividend?Adobe returns cash to shareholders through buybacks rather than dividends. The company believes reinvesting for growth and repurchasing shares build shareholder value more than a dividend would; it is not a sign of financial weakness.
Q. Why is the stock so far below its 52-week high?Two things stacked up. Competitive worry about generative-AI design tools (Figma, Canva and others) drove a large drawdown through 2026, and then the September 3 announcement of a CEO transition and the departure of the head of the creative business sent it down three sessions in a row. The current price is 33% below the 52-week high of $370.86. The results themselves have beaten consensus seven quarters running. (Information only, not a buy or sell recommendation.)
Q. Who are the main competitors?In Digital Experience (marketing), Salesforce (CRM) is the key comparison; across productivity software more broadly, Microsoft (MSFT).