Adobe Inc. (ADBE)
Information Technology · Application Software · US stock · S&P 500 component
$245.20
▼ -6.47 (2.57%)
Fair valueUndervalued
$554 +125.8% to fair value
$277fair band $388–$720$831
Day's range
$243.94 – $256.51
52-week range
$190.12 – $363.70
About Adobe Inc.
Adobe provides software for creating, editing and managing digital content and documents. Its products include Photoshop, Illustrator, Premiere Pro and Acrobat, along with Experience Cloud tools for marketing and analytics. Most revenue comes from subscriptions to its cloud services, which are sold to individual creators, businesses and large organizations, supplemented by smaller amounts from licenses, services and advertising technology.
Over the last twelve months Adobe Inc. reported revenue of $26.0 billion. Over three years revenue has grown by 10.5% a year. The operating margin is 35.7%. Return on invested capital is 58%. Net debt to EBITDA is 0.1 times. It does not pay a dividend. The X-Ray Score is 76 out of 100. Return on invested capital describes how much profit the business earns relative to the money put into it.
Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.
Price chart
52-wk range $190.12 – $363.70Volume 3,917,100Daily, split-adjusted
Vitals
Market cap$97.0B
52-week range$190.12 – $363.70
Volume (last day)3,917,100
P/E (TTM)13.8
EBIT / EV yield9.5%
Free-cash-flow yield10.9%
Dividend yieldNo dividend
Revenue (TTM)$26.0B
Net income (TTM)$7.3B
Operating margin35.7%
Return on capital58.3%
Debt incl. leases$6.4B
Cash & securities$5.6B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$554model spread $532 – $578
Undervalued
+125.8% to fair value
Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.
Price $245
Undervalued < $388Fair $388 – $720Overvalued > $720
10-year DCF (market-scaled)
$526
Peer multiples
$664
Earnings power floor (not blended)
$173
Fundamentals-adjusted multiple
$470
Growth the price implies
4.4%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.
What this means
Strong business at an attractive price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Valuation
Strong
95/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield9.5%
Free-cash-flow yield10.9%
Fair value vs price2.3×
Growth
Fair
57/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)10.5%
EPS growth (3y)18.2%
Growth consistency100%
Profitability
Strong
85/100
Earns high returns on the capital it uses.
See the numbers →
Return on invested capital58.3%
Operating margin35.7%
Gross profitability77.3%
Financial health
Fair
64/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA0.1×
Interest cover35.7×
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+10.6%
May '25
+10.7%
Aug '25
+10.5%
Nov '25
+12.0%
Feb '26
+12.7%
May '26
+12.9%
Aug '26
Revenue against the same quarter a year earlier. Latest quarter revenue $6.8B, diluted EPS $4.62.
Compare with peers
INTU Intuit Inc.72 FICO Fair Isaac Corp70 ADSK Autodesk, Inc.67 PLTR Palantir Technologies...60Other Application Software companies by X-Ray Score.
Fundamentals checklist
● 11 Good · ● 4 Average · ● 1 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldGood
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 76/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $15.8B | $17.6B | $19.4B | $21.5B | $23.8B |
| Operating income | $5.8B | $6.1B | $6.7B | $6.7B | $8.7B |
| Net income | $4.8B | $4.8B | $5.4B | $5.6B | $7.1B |
| Operating cash flow | $7.2B | $7.8B | $7.3B | $8.1B | $10.0B |
| Operating margin | 36.8% | 34.6% | 34.3% | 31.3% | 36.6% |
| Free cash flow | $6.9B | $7.4B | $6.9B | $7.9B | $9.9B |
| Diluted EPS | $10.02 | $10.10 | $11.82 | $12.36 | $16.70 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
6 bullish · 3 neutral · 7 bearish
Weekly
Strongly bearish
2 bullish · 1 neutral · 9 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 240.5 | Bullish |
| EMA 10 | 242.1 | Bullish |
| SMA 20 | 239.5 | Bullish |
| EMA 20 | 243.4 | Bullish |
| SMA 50 | 256.5 | Bearish |
| EMA 50 | 247.5 | Bearish |
| SMA 100 | 242.9 | Bullish |
| EMA 100 | 249.6 | Bearish |
| SMA 200 | 254.2 | Bearish |
| EMA 200 | 265.6 | Bearish |
Oscillators (daily)
| RSI (14) | 50.12 | Neutral |
| MACD (12, 26) | -2.81 | Bearish |
| Momentum (12) | 2.19 | Bullish |
| Stochastic %K (14) | 61.67 | Neutral |
| Williams %R (14) | -38.33 | Neutral |
| CCI (20) | 155.4 | Bearish |
Pivot points (classic, last session)
S3 228.0 | S2 236.0 | S1 240.6 | Pivot 248.5 | R1 253.2 | R2 261.1 | R3 265.7 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ADBE SEC filings
22 Sep 2026
10-QSEC EDGAR
Quarterly report
10 Sep 2026
8-KSEC EDGAR
Results of operations
8 Sep 2026
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
17 Jul 2026
8-KSEC EDGAR
Director or officer change
15 Jun 2026
10-QSEC EDGAR
Quarterly report
11 Jun 2026
8-KSEC EDGAR
Results of operations; Director or officer change
21 Apr 2026
8-KSEC EDGAR
Director or officer change; Shareholder vote results
25 Mar 2026
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.