| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 15.2x | 18.2x | Top tier | |
Growth | 69 | 11.5% | 7.1% | Top tier | |
Quality | 97 | 41.5% | 4.5% | Top tier | |
Safety | 83 | — | 2.6x | Top tier | |
Capital Return | 85 | — | 2.10% | Top tier | |
Momentum | 35 | -25.6% | 2.9% | Bottom tier | |
Sentiment | 76 | 23 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Adobe serves three interconnected customer groups: business professionals and consumers through Acrobat and Express, creators and professionals through Creative Cloud, Photoshop, Illustrator, Premiere, and Firefly, and enterprise marketers through Adobe Experience Platform, Adobe Experience Manager, GenStudio, and CX Enterprise. Its financial model is based primarily on subscriptions, with expansion into AI credit consumption pricing and outcome-based pricing; in fiscal Q2 2026, Business Professionals and Consumers subscription revenue was $1.85 billion, while Creative and Marketing Professionals subscription revenue was $4.54 billion, representing approximately 29% and 71%, respectively, of total customer group subscription revenue of $6.39 billion.
In fiscal Q2 2026, Adobe reported record revenue of $6.62 billion, up 13% on a reported basis and 11% in constant currency, while GAAP earnings per share reached $4.25, up 8%, compared with non-GAAP earnings per share of $5.96, up 18%. EDGAR data shows revenue of $6.6 billion, gross profit of $5.9 billion, and net income of $1.7 billion, equivalent to a gross margin of approximately 89% and a net income margin of approximately 26%; the results also included a non-cash goodwill impairment charge of $70 million, or $0.17 per share.
For the twelve months ended in 2026, revenue reached $25.2 billion, gross profit $22.5 billion, net income $7.2 billion, and earnings per share $17.96, compared with revenue of $23.8 billion, net income of $7.1 billion, and earnings per share of $16.70 in fiscal 2025. The company exited fiscal Q2 2026 with annual recurring revenue of $27.1 billion, including approximately $480 million from SEMrush, remaining performance obligations of $22.27 billion, and quarterly operating cash flow of $2.17 billion.
The average analyst price target is $261.16, within a wide range of $190 to $379, and the average is below the 52-week range high of $370.86, while the highest target is slightly above that high and the lowest target is close to the range low of $190.12. Although the aggregated consensus is “Buy,” the breadth of the targets reflects substantial disagreement over whether growth in Firefly and enterprise products can offset annual recurring revenue pressure resulting from expansion of the free path and the postponement of Creative Cloud pricing enhancements.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue reached $6.62 billion, up 13% on a reported basis and 11% in constant currency, driven by the conversion of subscription bookings into revenue. Business Professionals and Consumers subscriptions generated $1.85 billion, while Creative and Marketing Professionals subscriptions generated $4.54 billion. Earnings per share reached $4.25 on a GAAP basis and $5.96 on a non-GAAP basis, despite recording a non-cash goodwill impairment of $70 million.
Yes, Firefly annual recurring revenue approached $300 million by the end of fiscal Q2 2026, including applications, credit packs, and enterprise offerings. Firefly annual recurring revenue from applications and credit packs increased by approximately 50% quarter over quarter, while the number of generated assets grew more than fourfold year over year. Across Adobe as a whole, annual recurring revenue from AI-first products exceeded $500 million after growing to three times its level a year earlier.
On June 11, 2026, management said visits to adobe.com grew by more than 40% year over year and that traditional paths requiring immediate payment do not always match the intent of users seeking to complete an immediate task. The company is therefore directing more users to free experiences in Acrobat, Express, and Firefly before showing paywalls, after monthly usage of Acrobat and Express exceeded 850 million and free creative usage surpassed 90 million. Adobe acknowledges that this pressures short-term annual recurring revenue, but expects the conversion and long-term value impact to emerge during 2027.
Automated analysis for informational purposes only — not investment advice.
Adobe closed the acquisition of SEMrush in April 2026, and the transaction added approximately $480 million to the annual recurring revenue balance. The company wants to combine SEMrush data on search queries and prompts with content within Adobe Experience Manager and agentic web applications. The resulting offering is intended to help marketing leaders measure and improve brand visibility across search engines, language models, and digital platforms.
On June 11, 2026, Adobe raised its fiscal 2026 revenue and non-GAAP earnings per share targets, setting non-GAAP earnings per share at between $24.35 and $24.45 and GAAP earnings per share at between $17.90 and $18.00. It also targeted growth of 10.2% in the total annual recurring revenue balance compared with the fiscal 2026 opening balance of $25.6 billion, with a non-GAAP operating margin of approximately 45%. For fiscal Q3 2026, it set revenue at between $6.67 billion and $6.72 billion and non-GAAP earnings per share at between $6.05 and $6.10, with a non-GAAP operating margin of approximately 44%.
Adobe generated operating cash flow of $2.17 billion in fiscal Q2 2026 and ended the period with cash and short-term investments of $5.63 billion. It repurchased approximately 8.5 million shares during the quarter and had approximately $27 billion remaining under its repurchase authorizations. This includes a new $25 billion authorization announced in April 2026, giving the company a substantial tool to reduce its share count alongside funding AI investments and the integration of SEMrush. A lower share count could support earnings per share, but its impact depends on the actual pace of execution and purchase price. The final comment explains the potential impact without assuming a pace that the company did not specify.
