ADBE

ADOBE INC. ↗ website

CIK: 0000796343 · Technology / Software - Application · 3d ago

$237.25 +1.94 (+0.82%)

Market Cap $94B P/E 13.6 EV/EBITDA 13.8x P/B 8.2 52W $190 – $376

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Growth

Compounded Sales Growth

10 Years	17%
5 Years	13%
3 Years	11%
TTM	13%

Compounded Profit Growth

10 Years	27%
5 Years	6%
3 Years	14%
TTM	7%

Fundamental Growth Decomposition ⓘ

Window:

Returns / Quality

Avg ROIC (All-Capital)

10 Years	41%
5 Years	46%
3 Years	50%
Last Year	62%

Return on Equity

10 Years	33%
5 Years	40%
3 Years	45%
Last Year	61%

Capital Allocation

Capital Return Ratio (vs OE)

10 Years	104%
5 Years	121%
3 Years	128%
Last Year	149%

Performance

Stock Price CAGR

10 Years	9%
5 Years	-18%
3 Years	-24%
1 Year	-34%

Metric	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Capital Allocation (USD millions / %)
NOPAT	651	1,216	1,718	2,634	3,009	4,237	4,904	4,827	5,309	5,408	7,107
Invested capital (ops)	1,366	1,561	2,041	2,247	2,619	2,609	3,239	3,594	3,940	3,647	3,800
Reinvestment rate %	N/A	16.0%	27.9%	7.8%	12.3%	-0.2%	12.8%	7.4%	6.5%	-5.4%	2.2%
ROIC (Ops) % ⓘ	47.6%	83.1%	95.4%	122.8%	123.7%	162.1%	167.7%	141.3%	140.9%	142.5%	190.9%
Invested capital (All-Capital)	4,921	4,556	4,521	10,258	7,342	11,389	13,122	11,584	12,310	11,848	11,238
ROIC (All-Capital) % ⓘ	13.2%	25.7%	37.9%	35.6%	34.2%	45.2%	40.0%	39.1%	44.4%	44.8%	61.6%
Capital return ratio %	N/A	95.1%	74.2%	78.8%	87.0%	52.3%	82.5%	129.7%	77.0%	147.7%	149.4%
Acquisition intensity %	11.1%	6.0%	1.8%	23.5%	0.3%	0.0%	11.7%	0.5%	1.4%	0.0%	3.4%
Profit & Loss (USD millions)
Revenue	4,796	5,854	7,302	9,030	11,171	12,868	15,785	17,606	19,409	21,505	23,769
Revenue growth %	N/A	22.1%	24.7%	23.7%	23.7%	15.2%	22.7%	11.5%	10.2%	10.8%	10.5%
Gross profit	4,051	5,035	6,291	7,835	9,498	11,146	13,920	15,441	17,055	19,147	21,218
Gross margin %	84.5%	86.0%	86.2%	86.8%	85.0%	86.6%	88.2%	87.7%	87.9%	89.0%	89.3%
Gross profit growth %	N/A	24.3%	25.0%	24.5%	21.2%	17.4%	24.9%	10.9%	10.5%	12.3%	10.8%
Operating income	903	1,494	2,168	2,840	3,268	4,237	5,802	6,098	6,650	6,741	8,706
Operating margin %	18.8%	25.5%	29.7%	31.5%	29.3%	32.9%	36.8%	34.6%	34.3%	31.3%	36.6%
Operating income growth %	N/A	65.4%	45.2%	31.0%	15.1%	29.7%	36.9%	5.1%	9.1%	1.4%	29.1%
EBITDA	1,243	1,825	2,494	3,186	4,025	4,994	6,590	6,954	7,522	7,598	9,524
EBITDA growth %	N/A	46.9%	36.7%	27.7%	26.3%	24.1%	32.0%	5.5%	8.2%	1.0%	25.3%
EBITDA margin %	25.9%	31.2%	34.2%	35.3%	36.0%	38.8%	41.7%	39.5%	38.8%	35.3%	40.1%
Interest expense	64	70	74	89	157	116	113	112	113	169	263
Interest coverage (x)	19.4x	25.9x	33.5x	35.8x	25.6x	43.1x	58.3x	62.1x	66.6x	45.0x	36.2x
Net income	630	1,169	1,694	2,591	2,951	5,260	4,822	4,756	5,428	5,560	7,130
Net margin %	13.1%	20.0%	23.2%	28.7%	26.4%	40.9%	30.5%	27.0%	28.0%	25.9%	30.0%
Net income growth %	N/A	85.7%	44.9%	53.0%	13.9%	78.2%	-8.3%	-1.4%	14.1%	2.4%	28.2%
EPS (diluted, $)	1.24	2.32	3.38	5.20	6.00	10.83	10.02	10.10	11.82	12.36	16.70
EPS growth %	N/A	87.1%	45.7%	53.8%	15.4%	80.5%	-7.5%	0.8%	17.0%	4.6%	35.1%
Balance Sheet (USD millions)
Total assets	11,726	12,697	14,536	18,769	20,762	24,284	27,241	27,165	29,779	30,230	29,496
Total debt	1,907	1,892	1,881	4,125	989	4,117	4,123	3,629	3,634	5,629	6,210
Shareholders' equity	7,002	7,425	8,459	9,362	10,530	13,264	14,797	14,051	16,518	14,105	11,623
Cash & equivalents	3,988	4,761	5,820	3,229	4,177	5,992	5,798	6,096	7,842	7,886	6,595
Shares outstanding (M)	498	494	491	488	483	479	475	462	455	441	413
Cash Flow (USD millions)
Operating cash flow	1,470	2,200	2,913	4,029	4,422	5,727	7,230	7,838	7,302	8,056	10,031
Capex	185	204	178	267	395	419	348	442	360	183	179
Free cash flow	1,285	1,996	2,735	3,762	4,027	5,308	6,882	7,396	6,942	7,873	9,852
FCF margin %	26.8%	34.1%	37.5%	41.7%	36.0%	41.2%	43.6%	42.0%	35.8%	36.6%	41.4%
FCF growth %	N/A	55.4%	37.0%	37.6%	7.0%	31.8%	29.7%	7.5%	-6.1%	13.4%	25.1%
Owner Earnings	N/A	1,130	1,482	2,602	3,159	5,832	4,788	5,050	5,716	6,433	7,553
Owner Earnings margin %	N/A	19.3%	20.3%	28.8%	28.3%	45.3%	30.3%	28.7%	29.5%	29.9%	31.8%
Owner Earnings growth %	N/A	N/A	31.2%	75.5%	21.4%	84.6%	-17.9%	5.5%	13.2%	12.5%	17.4%
Unlevered Owner Earnings	805	1,344	1,866	2,713	3,371	4,575	5,344	5,241	5,821	6,082	7,746
Investing cash flow	-1,488	-960	-443	-4,685	-456	-414	-3,537	-570	776	149	-1,187
Financing cash flow	-201	-1,091	-1,184	-5	-2,946	-3,488	-4,301	-6,825	-5,182	-7,724	-11,060
Dividends paid	0	0	0	0	0	0	0	0	0	0	0
Share buybacks	625	1,075	1,100	2,050	2,750	3,050	3,950	6,550	4,400	9,500	11,281
Buyback yield %	1.4%	2.1%	1.3%	1.7%	1.8%	1.3%	1.5%	4.2%	1.6%	4.2%	8.5%
D&A	339	332	326	346	757	757	788	856	872	857	818
CFO / Op. Income %	162.7%	147.3%	134.4%	141.9%	135.3%	135.2%	124.6%	128.5%	109.8%	119.5%	115.2%
Working Capital (USD millions)
Accounts receivable	672	833	1,218	1,359	1,535	1,398	1,878	2,065	2,224	2,072	2,344
Inventory	0	0	0	0	0	0	0	0	0	0	0
Accounts payable	93	88	114	186	209	306	312	379	314	361	417
Net PPE	787	816	937	1,075	1,293	1,517	1,673	1,908	2,030	1,936	1,873
Key Ratios
ROE %	9.0%	15.7%	20.0%	27.7%	28.0%	39.7%	32.6%	33.8%	32.9%	39.4%	61.3%
ROA %	5.4%	9.2%	11.7%	13.8%	14.2%	21.7%	17.7%	17.5%	18.2%	18.4%	24.2%
ROCE %	9.5%	15.1%	19.7%	19.6%	26.0%	22.6%	28.6%	32.0%	30.9%	34.2%	45.1%
Debt / Equity	0.27	0.25	0.22	0.44	0.09	0.31	0.28	0.26	0.22	0.40	0.53
Net Debt / EBITDA (x)	-1.7x	-1.6x	-1.6x	0.3x	-0.8x	-0.4x	-0.3x	-0.4x	-0.6x	-0.3x	-0.0x
Debtor days	51	52	61	55	50	40	43	43	42	35	36
Inventory days	—	—	—	—	—	—	—	—	—	—	—
Days payable (DPO)	46	39	41	57	46	65	61	64	49	56	60
Cash conv. cycle	5	13	20	-2	5	-25	-18	-21	-7	-21	-24

Metric	FY24 Q2 May 24	FY24 Q3 Aug 24	FY25 Q1 Feb 25	FY25 Q2 May 25	FY25 Q3 Aug 25	FY25 Q4 Nov 25	FY26 Q1 Feb 26	FY26 Q2 May 26
Profit & Loss (USD millions)
Revenue	5,309	5,408	5,714	5,873	5,988	6,194	6,398	6,618
Gross profit	4,711	4,854	5,092	5,235	5,346	5,545	5,734	5,903
Gross margin %	88.7%	89.8%	89.1%	89.1%	89.3%	89.5%	89.6%	89.2%
Operating income	1,885	1,992	2,163	2,109	2,173	2,261	2,418	2,238
Net income	1,573	1,684	1,811	1,691	1,772	1,856	1,889	1,712
Net margin %	29.6%	31.1%	31.7%	28.8%	29.6%	30.0%	29.5%	25.9%
EPS (diluted, $)	3.49	3.76	4.14	3.94	4.18	4.49	4.60	4.25
Balance Sheet (USD millions, end of quarter)
Total assets	30,007	29,830	29,955	28,107	28,754	29,496	29,704	29,933
Total debt	4,127	4,128	6,155	6,166	6,200	6,210	6,229	4,802
Shareholders' equity	14,843	14,545	13,095	11,448	11,770	11,623	11,433	11,518
Cash & equivalents	8,065	7,515	7,435	5,713	5,940	6,595	6,890	5,626
Cash Flow (USD millions)
Operating cash flow	—	—	2,482	2,191	2,198	3,160	2,958	2,165
Capex	—	—	26	47	72	34	37	58
Free cash flow	—	—	2,456	2,144	2,126	3,126	2,921	2,107

Product

Service Other

Subscription Revenue

Segment	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue ($M)
Product	555 4%	532 3%-4%	460 2%-14%	386 2%-16%	325 1%-16%
Service Other	657 4%	686 4%+4%	665 3%-3%	598 3%-10%	540 2%-10%
Subscription Revenue	14,573 92%	16,388 93%+12%	18,284 94%+12%	20,521 95%+12%	22,904 96%+12%
Total (check)	15,785	17,606	19,409	21,505	23,769

Source: SEC EDGAR XBRL · Full breakdown ↗

Digital Marketing

Digital Media

Print And Publishing

Digital Experience

Publishing

Publishing And Advertising

Segment	FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue ($M)
Digital Marketing	1,085	1,229 +13%	1,355 +10%	1,509 31%+11%	1,737 30%+15%	2,120 29%+22%	—	—	—	—	—	—	—	—
Digital Media	3,102	2,626 -15%	2,603 -1%	3,095 65%+19%	3,941 67%+27%	5,011 69%+27%	6,325 70%+26%	7,707 69%+22%	9,233 72%+20%	11,520 73%+25%	12,842 73%+11%	14,216 73%+11%	15,864 74%+12%	17,649 74%+11%
Print And Publishing	217	200 -8%	189 -6%	191 4%+1%	177 3%-8%	171 2%-3%	—	—	—	—	—	—	—	—
Digital Experience	—	—	—	—	1,631 28%	2,030 28%+24%	2,073 23%+2%	2,795 25%+35%	3,125 24%+12%	3,867 24%+24%	4,422 25%+14%	4,893 25%+11%	5,366 25%+10%	5,864 25%+9%
Publishing	—	—	—	—	282 5%	261 4%-8%	261 3%+0%	258 2%-1%	—	—	—	—	—	—
Publishing And Advertising	—	—	—	—	—	—	632 7%	669 6%+6%	510 4%-24%	398 3%-22%	342 2%-14%	300 2%-12%	275 1%-8%	256 1%-7%
Total (check)	4,404	4,055	4,147	4,796	7,768	9,592	9,291	11,429	12,868	15,785	17,606	19,409	21,505	23,769

Source: SEC EDGAR XBRL · Full breakdown ↗

ADBE

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