Adobe Inc. (ADBE)
Technology · Software—Application · NASDAQ
$241.28
+0.56%
Investru Score
71.7 / 100
Strong
Why is ADBE moving?
ADBE is up 0.56% today, a bounce against its broader downtrend.
Recent coverage: Is Adobe Stock A Real Bargain?
Business overview
- Operating margin stands at 36.6%.
- Net margin is reported at 30%.
- Gross margin reaches 89.3%.
These strong operating metrics demonstrate efficient business operations and powerful pricing power within the software application sector.
Bull case
Adobe's exceptional profitability, high returns on capital, and strong free cash flow yield, paired with a very attractive valuation and fast-growing earnings, create a compelling opportunity for long-term appreciation if growth persists.
Bear case
Persistent technical weakness and ongoing downward price momentum could continue to weigh on the stock, while any deceleration in revenue growth below current levels might challenge the investment thesis.
ADBE’s Investru Score changed -8 points recently. Want to know exactly what changed and why? That’s a Pro feature →
Score breakdown
- Financial Quality
- 97
- Growth
- 48
- Profitability
- 84
- Balance Sheet
- 66
- Valuation
- 94
- Momentum
- 12
Score history
-8.0 over the last 32 days, driven mainly by momentum (-86).
Financial quality
- ROIC is 40%.
- ROE is 61.3%.
- FCF margin is 41.4%.
- Earnings quality is 1.41.
Together, these high returns on capital and strong cash generation show that the company excels at turning profits into actual cash.
- ROIC
- 40.0%
- ROE
- 61.3%
- FCF Margin
- 41.4%
- Free Cash Flow (TTM)
- $9.9B
- Earnings Quality (OCF ÷ Net Income)
- 1.4x
Valuation
- P/E is 13.84.
- Forward P/E is 8.79.
- PEG trailing is 0.39.
- PEG forward is 0.25.
- Median PEG is 0.32.
- EV to EBITDA is 10.04.
- P/S ratio is 3.87.
- FCF yield is 9.9%.
These low valuation multiples relative to growth and a high free cash flow yield suggest the stock is priced attractively relative to its financial performance.
- P/E (TTM)
- 13.8x
- Forward P/E
- 8.8x
- PEG (P/E ÷ EPS Growth)
- 0.4x
- Company Median PEG
- 0.3x
- Price / Sales
- 3.9x
- EV / EBITDA
- 10.0x
- FCF Yield
- 9.9%
Key risks
- The stock is currently locked in a downtrend, trading below both its 50-day and 200-day moving averages.(Probability: High · Impact: Medium)
- The minor negative margin trend of -0.1 could signal potential cost pressures ahead.(Probability: Medium · Impact: Low)
- Revenue growth of 10.5% leaves little room for error if software demand slows down.(Probability: Medium · Impact: High)
Latest earnings
- Q3 FY26 EPS
- $4.62
- Estimate
- Data unavailable
- Surprise
- Data unavailable
- EPS growth YoY is 35.1%.
- Earnings quality is 1.41.
These robust earnings metrics signify strong bottom-line expansion backed by high-quality profits that are well-supported by actual cash flows.
SEC filings
- 10-Q · Q3 FY26 · period ended 2026-08-28Filed 2026-09-22
- 10-Q · Q2 FY26 · period ended 2026-05-29Filed 2026-06-15
- 10-Q · Q1 FY26 · period ended 2026-02-27Filed 2026-03-25
- 10-K · FY25 · period ended 2025-11-28Filed 2026-01-15
- 10-Q · Q3 FY25 · period ended 2025-08-29Filed 2025-09-24
- 10-K · FY24 · period ended 2024-11-29Filed 2025-01-13
- 10-K · FY23 · period ended 2023-12-01Filed 2024-01-17
- 10-K · FY22 · period ended 2022-12-02Filed 2023-01-17
- 10-K · FY21 · period ended 2021-12-03Filed 2022-01-21
Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.
Market cap $99.6B · 52-week range $190.12–$363.70 · market data as of Oct 1, 2026, 4:00 PM ET · latest SEC filing: 2026-09-22
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Analyze ADBE with Investru AINot investment advice. Investru AI summarizes public data and AI-generated analysis for informational purposes only.