Adobe Inc.ADBE
NasdaqGS•Technology•Software - Application
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.
Adobe Inc. (ADBE) reported trailing twelve months revenue of $24.45B as of February 2026, a 11.0% increase year-over-year. Quarterly revenue reached $6.40B, reflecting continued top-line momentum.
Adobe Inc. generated $7.21B in TTM net income, with quarterly EBITDA of $2.59B. The operating margin contracted from 37.9% to 37.8%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (37.8%) and net margin (29.5%) indicates moderate non-operating costs. Net margin has narrowed from 31.7% a year ago, reflecting increased costs or interest expense.
ADBE trades at a P/E of 14.7x (below the broader market average) and a P/S of 4.3x. The price-to-book ratio of 9.3x indicates a significant premium over book value.
The company generated $2.92B in free cash flow over the trailing twelve months, a 18.9% increase year-over-year, indicating cash generation ability. The balance sheet shows $29.70B in total assets with $5.38B in long-term debt against $11.43B in stockholders equity for a debt-to-equity ratio of 0.5, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are stable at ~36.4%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 50.7% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~19.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~36.6% — no sign of cost or pricing stress.
FCF covers net income by 1.4x on average — earnings are well-supported by cash generation.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 8.7% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation