ADBE Adobe Inc.
Loading price history…
Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Software - Application · San Jose, CA · 31,360 employees · adobe.com
Adobe develops software and platforms used to create, publish, and monetize digital content, as well as tools to manage customer interactions and digital experiences. The company generates revenue by licensing its creative, document, and marketing applications to individual consumers, creative professionals, and enterprise clients through direct online channels and partner networks.
Bull case
Adobe converts a substantial portion of revenue into free cash flow after stock compensation, underpinned by returns on capital that sit well above its capital costs and cash reserves that exceed its debt. The business also holds an advantage in selling artificial intelligence tools directly into the everyday workflows of its large existing customer base.
- Trades at the 5th percentile of its own valuation history.
- The price assumes about -1% a year cash-flow growth; it delivered +13% a year over three years.
- Turns 33% of revenue into free cash after stock pay.
- Returns on capital run well above its cost of capital.
Bear case
The company would lose if emerging artificial intelligence agents successfully challenge traditional per-seat software pricing models.
- The share price trend is still falling.
Features
- V-DEEP-VALUE Deep value The price is 65% below its own-history reference value.
- V-WIDE-MOAT Wide moat Returns on capital run well above its cost of capital.
- H-FORTRESS Fortress balance sheet It holds more cash than debt and is profitable.
- H-CANNIBAL Share cannibal The share count fell 6.7% over the past year.
- F-ANALYST-BEARISH Analysts cautious Only 28% of analysts rate it positively.
AI impact
Sells AI to its customers Tailwind
Adobe sells creative, document, and marketing software that embeds artificial intelligence tools and automated agents. Its established position in everyday creative workflows and broad existing customer base support new AI features, but rivals using artificial intelligence could build alternative tools that change how digital work is performed.
Where AI helps it
- Its software sits where AI agents would do the work
- Can sell AI to a large base of existing customers
Where AI could hurt it
- AI tools could do part of what it sells (minor)
- AI makes it cheaper for rivals to build what it sells (minor)
In the company's words
Adobe’s AI platform powers the applications and interfaces that customers use every day across their creative, productivity and marketing workflows by bringing together innovations across agents, models and data.
In addition, we expect to face more competition as AI continues to rapidly evolve and be integrated into the markets in which we compete, changing the software industry and transforming how digital work is performed or automated and how, and the extent to which, our solutions are accessed and used.
Assessed by AI from the company's own annual report filed 15 Jan 2026 and quarterly report filed 22 Sep 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
ADBE is at the 5th percentile of its own valuation history. Depending on how far back you look, it ranges from the 2nd to the 8th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Deep discount zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
Trend gate active: the price is still falling through this zone.
What the price assumes
The measured price implies roughly -0.7% annual cash-flow growth, between -6.3% and +3.5% under other reasonable assumptions. Over the last three years it delivered +12.8% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.