Adobe (ADBE) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Adobe

NasdaqGS•Technology•Software - Application

$252.67+2.17(0.01%)After hours

Market Cap

$101.67B

P/E

14.1x

P/S

4.0x

P/B

8.8x

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.

How this company scores

ExcellentMetricSide Score: 86/100

Strongest: Cash & Earnings Quality (23/25); weakest: Balance Sheet & Red Flags (21/25).

Profitability21/25

Growth21/25

Balance Sheet & Red Flags21/25

Cash & Earnings Quality23/25

Strengths

Strong marginsHigh ROELow leverageCash-backed earnings

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 14.1x5y range 14.1x – 66.3x

Currently below its 20-quarter median.

P/S · 4.0x5y range 4.0x – 21.0x

Currently below its 20-quarter median.

P/B · 8.8x5y range 8.8x – 22.0x

Price & Volume

Market Cap $101.67B

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $25.20B
Q. Revenue: $6.62B
TTM EBITDA: $10.27B
TTM Op. Income: $9.09B
Q. Op. Income: $2.24B
TTM Net Income: $7.23B
Q. Net Income: $1.71B
EPS: $4.26
Shares Out.: $402.40M

$25.20B in TTM revenue grew 11.5% YoY, reaching $6.62B last quarter. TTM EBITDA of $10.27B and TTM operating income of $9.09B show growth is flowing through to the bottom line. TTM net income of $7.23B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 89.2%
EBITDA Margin: 36.7%
Op. Margin: 33.8%
Net Margin: 25.9%

Op. margin of 33.8% is down 2.1% YoY — costs are rising relative to revenue. Net margin at 25.9% and gross margin of 89.2% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 6% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 14.1x
P/S Ratio: 4.0x
P/B Ratio: 8.8x

At 14.1x P/E, the stock trades below typical market levels. P/S of 4.0x and P/B of 8.8x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has fallen for 7 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $29.93B
Cash: $4.92B
Long-Term Debt: $4.80B
Book Value: $11.52B
D/E Ratio: 0.4
Debt/EBITDA: 2.0

With $29.93B in assets and $4.80B in long-term debt, D/E is 0.4and book value is $11.52B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $2.17B
TTM Free Cash Flow: $10.28B
FCF Margin: 40.8%
FCF / Net Income: 1.4

TTM FCF of $10.28B on $2.17B in operating cash flow. The FCF / Net Income ratio of 1.4x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 9% — a weakening trend.