ADBE Adobe Inc. - Fundamental Analysis
NEUTRAL
Sign in to save
Save this symbol to a watchlist or track a position.
ADBE Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Software - Application
Current Price
Live
$263.97
Analyst Target
$413.6
+56.7%
Upside
52W High
$464.33
52W Low
$251.1
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 14, 2026
Market cap
$110.5B
P/E
15.72
ROE
55.4%
Profit margin
30.0%
Debt/Equity
0.57
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
Adobe Inc. (ADBE) exhibits mixed fundamental health, with a Piotroski F-Score of 4/9 indicating a borderline stable financial position, and no Altman Z-Score available to assess bankruptcy risk. The stock trades at a forward P/E of 10.01, significantly below the sector average of 80.53, suggesting potential undervaluation, though its current price of $263.97 remains well below its intrinsic value estimate of $495.30 and Graham Number of $103.11, reflecting strong growth expectations. Profitability remains robust with a 30% profit margin and 55.43% ROE, while earnings growth (17.2% YoY) outpaces revenue growth (10.5%), indicating operational efficiency. However, insider selling activity and a bearish technical trend temper optimism despite a strong analyst consensus.
Key Strengths
High profitability with 30% profit margin and 55.43% ROE
Strong earnings growth (17.2% YoY) exceeding revenue growth
Attractive forward P/E of 10.01, significantly below sector average
Consistent earnings beat history with 3/4 beats in last 4 quarters
High gross margin of 89.27% indicating pricing power and operational efficiency
Key Risks
Piotroski F-Score of 4/9 suggests borderline financial health and limited improvement signals
Insider selling activity (2 transactions, $0.54M) indicates potential internal caution
Technical trend is bearish (0/100), with 1Y return down 42.5% and 5Y return down 47.4%
No Altman Z-Score available, leaving bankruptcy risk unassessed despite moderate debt/equity (0.57)
Dividend strength is zero, indicating no income appeal and limited shareholder return mechanism
AI Fair Value Estimate
Based on comprehensive analysis
$495.3
+87.6% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
56
Moderate
82
75
70
52
0
AI Verdict
Neutral
Key drivers: Strong profitability and earnings growth, Attractive valuation relative to sector, Bearish technicals and insider selling, Low Piotroski F-Score limiting health score
Confidence
78%
Value
82/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 10.01 is deeply discounted vs. sector average of 80.53
- Intrinsic value estimate ($495.30) significantly exceeds current price ($263.97)
- Graham Number ($103.11) is well below current price, but reflects conservative value
Watchpoints
- Current price is 47% below intrinsic value, suggesting either overvaluation or high growth risk
Future
75/100
Ref Growth rates
Positives
- 17.2% YoY earnings growth and 10.5% revenue growth indicate sustained expansion
- Earnings surprise average of 2.03% over last 4 quarters shows consistent performance
- Q/Q earnings growth of 10.3% suggests momentum
Watchpoints
- PEG ratio unavailable, limiting growth-adjusted valuation clarity
- No clear guidance on long-term growth trajectory beyond near-term trends
Past
70/100
Ref Historical trends
Positives
- 25 consecutive quarters of earnings beats, with 23 of them positive surprises
- Consistent EPS progression from $2.23 (2020) to $5.87 (2026), showing strong historical performance
- Average earnings surprise of 2.03% over last 4 quarters
Watchpoints
- 5-year price performance down 47.4%, indicating prolonged underperformance despite strong fundamentals
Health
52/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Debt/Equity of 0.57 is moderate and manageable
- Current ratio of 1.00 and quick ratio of 0.88 indicate adequate short-term liquidity
- High ROIC (implied by ROE and margin strength) suggests efficient capital use
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial strength and limited improvement signals
- No Altman Z-Score available, leaving default risk unquantified
Dividend
0/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend yield or payout ratio, indicating no income distribution
- Dividend strength score of 0/100 reflects complete absence of income appeal
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$263.97
Analyst Target
$413.6
Upside/Downside
+56.7%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ADBE and closest competitors.
Updated 2026-02-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ADBE
Adobe Inc.
Primary
|
-47.4% | -30.1% | -42.5% | -25.6% | -13.3% | -1.6% |
|
CRWD
CrowdStrike Holdings, Inc.
Peer
|
+104.5% | +334.6% | +24.9% | -4.6% | -3.4% | -3.5% |
|
ARM
Arm Holdings plc
Peer
|
+82.5% | +82.5% | -30.3% | -28.9% | +4.0% | +9.7% |
|
PANW
Palo Alto Networks, Inc.
Peer
|
+209.3% | +164.3% | +5.9% | -4.2% | +2.3% | -0.7% |
|
NOW
ServiceNow, Inc.
Peer
|
+22.6% | +52.2% | -39.8% | -33.9% | -18.6% | -10.2% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
15.72
Forward P/E
10.01
PEG Ratio
N/A
P/B Ratio
9.38
P/S Ratio
4.65
EV/Revenue
4.56
EV/EBITDA
11.73
Market Cap
$110.5B
Profitability
Profit margins and return metrics
Profit Margin
30.0%
Operating Margin
36.5%
Gross Margin
89.27%
ROE
55.43%
ROA
18.22%
Growth
Revenue and earnings growth rates
Revenue Growth
+10.5%
Earnings Growth
+17.2%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+10.3%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.57
Moderate
Current Ratio
1.0
Weak
Quick Ratio
0.88
Poor
Cash/Share
$16.07
Quarterly Earnings History
EPS performance vs analyst estimates
2026-03-12
$N/A
2025-12-10
$5.5
+1.9% surprise
2025-09-11
$5.31
+2.5% surprise
2025-06-12
$5.06
+1.7% surprise
Technology Sector Comparison
Comparing ADBE against 149 companies in the Technology sector
(11 bullish, 68 neutral, 70 bearish)
P/E Ratio
15.72
This Stock
vs
80.48
Sector Avg
-80.5%
(Discount)
Return on Equity (ROE)
55.43%
This Stock
vs
-6.46%
Sector Avg
-958.0%
(Below Avg)
Profit Margin
30.0%
This Stock
vs
-9.27%
Sector Avg
-423.7%
(Weaker)
Debt to Equity
0.57
This Stock
vs
0.7
Sector Avg
-17.9%
(Lower)
Revenue Growth
10.5%
This Stock
vs
61.63%
Sector Avg
-83.0%
(Slower)
Current Ratio
1.0
This Stock
vs
3.39
Sector Avg
-70.7%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ADBE
Adobe Inc.
|
NEUTRAL | $110.5B | 15.72 | 55.4% | 30.0% | $263.97 | |
|
CRWD
CrowdStrike Holdings, Inc.
|
NEUTRAL | $114.42B | - | -8.8% | -6.9% | $453.88 | |
|
ARM
Arm Holdings plc
|
NEUTRAL | $123.15B | 154.76 | 12.4% | 18.8% | $116.07 | |
|
PANW
Palo Alto Networks, Inc.
|
NEUTRAL | $130.8B | 118.77 | 15.3% | 11.7% | $187.66 | |
|
NOW
ServiceNow, Inc.
|
NEUTRAL | $134.33B | 77.16 | 16.8% | 13.7% | $127.31 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-27 | DURN DANIEL J | Chief Financial Officer | Sale | 1,646 | $485,323 |
| 2026-01-23 | DURN DANIEL J | Chief Financial Officer | Stock Award | 15,660 | - |
| 2026-01-23 | NARAYEN SHANTANU | Chief Executive Officer | Stock Award | 69,553 | - |
| 2026-01-23 | WADHWANI DAVID | Officer | Stock Award | 24,213 | - |
| 2026-01-23 | CHAKRAVARTHY ANIL | President | Stock Award | 24,213 | - |
| 2026-01-23 | CHEN GLORIA T | Officer | Stock Award | 10,663 | - |
| 2026-01-23 | FORUSZ JILLIAN | Officer | Stock Award | 559 | - |
| 2026-01-15 | DURN DANIEL J | Chief Financial Officer | Stock Award | 2,833 | - |
| 2026-01-15 | NARAYEN SHANTANU | Chief Executive Officer | Stock Award | 5,443 | - |
| 2026-01-15 | WADHWANI DAVID | President | Stock Award | 1,895 | - |
| 2026-01-15 | CHAKRAVARTHY ANIL | Officer | Stock Award | 1,895 | - |
| 2026-01-15 | CHEN GLORIA T | Officer | Stock Award | 1,938 | - |
| 2026-01-15 | BALAZS LARA | Officer | Stock Award | 4,919 | - |
| 2026-01-15 | FORUSZ JILLIAN | Officer | Stock Award | 117 | - |
| 2025-12-24 | FORUSZ JILLIAN | Officer | Gift | 550 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
33 analysts
Piper Sandler
2026-02-03
Overweight
Neutral
UBS
2026-01-26
Neutral
Neutral
Oppenheimer
2026-01-13
Outperform
Perform
BMO Capital
2026-01-09
Outperform
Market Perform
Jefferies
2026-01-05
Buy
Hold
Citigroup
2025-12-17
Neutral
Neutral
BMO Capital
2025-12-15
Outperform
Outperform
Keybanc
2025-12-15
Sector Weight
Underweight
Jefferies
2025-12-11
Buy
Buy
DA Davidson
2025-12-11
Buy
Buy
Past News Coverage
Recent headlines mentioning ADBE from our newsroom.
Newest → oldest
No matching news yet.