Market Cap: 84.3376B; Large Cap
P/E Ratio: 12.49; Fwd: 8.95
EPS (TTM): $16.99
Div. Yield: N/A

ADBENASDAQ— Adobe Systems Incorporated Price & Analysis

Adobe Systems Incorporated

TECHNOLOGY — SOFTWARE - APPLICATION

$225.11

+$12.94+6.10%

Market Cap: 84.3376B; Large Cap
P/E Ratio: 12.49; Fwd: 8.95
EPS (TTM): $16.99
Div. Yield: N/A

Technical Summary

RSI (14)51.43Neutral

SMA (50)$227.99Bearish

SMA (200)$278.81Bearish

MACD0.5136Bullish

Bollinger$201.79 – $239.99Mid

Stochastic24.35Neutral

Theo Outlook

Adobe Inc. (ADBE) presents a bullish thesis with a trailing P/E of 13.56, forward P/E of 9.73, and market capitalization of $94.31 billion. The company delivered EPS of $17.49 alongside TTM revenue of $25.20 billion, supported by 12.7% year-over-year quarterly revenue growth and 7.9% earnings growth. These metrics position ADBE as attractively valued relative to its software peers amid steady profitability.

Key catalysts include Adobe's expansion in digital marketing and creative cloud subscriptions, with strong earnings momentum reflected in positive analyst ratings (2 strong buy, 9 buy). Product innovation in AI-enhanced tools like Photoshop and Acrobat, plus market penetration in enterprise solutions, continues to drive adoption. Recent quarterly results underscore resilience in recurring revenue streams.

Risks encompass elevated beta of 1.43 exposing the stock to macro volatility, intense competition from cloud-native rivals, and potential regulatory scrutiny on data privacy in creative software. Mitigations involve Adobe's dominant market position, diversified revenue base, and ongoing investment in AI capabilities to sustain competitive edges. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Theo Outlook

Adobe Inc. (ADBE) presents a bullish thesis with a trailing P/E of 13.56, forward P/E of 9.73, and market capitalization of $94.31 billion. The company delivered EPS of $17.49 alongside TTM revenue of $25.20 billion, supported by 12.7% year-over-year quarterly revenue growth and 7.9% earnings growth. These metrics position ADBE as attractively valued relative to its software peers amid steady profitability.

Key catalysts include Adobe's expansion in digital marketing and creative cloud subscriptions, with strong earnings momentum reflected in positive analyst ratings (2 strong buy, 9 buy). Product innovation in AI-enhanced tools like Photoshop and Acrobat, plus market penetration in enterprise solutions, continues to drive adoption. Recent quarterly results underscore resilience in recurring revenue streams.

Risks encompass elevated beta of 1.43 exposing the stock to macro volatility, intense competition from cloud-native rivals, and potential regulatory scrutiny on data privacy in creative software. Mitigations involve Adobe's dominant market position, diversified revenue base, and ongoing investment in AI capabilities to sustain competitive edges. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Company Overview

Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.

Fundamental Snapshot

Revenue: 25.198B
EBITDA: 9.729B
Gross Profit: 22.528B
Operating Margin: 35.3%
Profit Margin: 28.7%
ROE: 62.9%
Book Value: $28.87
Beta: 1.433
52-Wk High: $376.16
52-Wk Low: $190.12
Avg Volume: 4.7041M
PEG Ratio: 0.597

Frequently Asked Questions

What is Adobe's business model?

Adobe operates a subscription-based SaaS model centered on Creative Cloud, Document Cloud, and Experience Cloud platforms. It generates recurring revenue from millions of users worldwide through monthly or annual licenses for tools like Photoshop and Acrobat.

What are Adobe's primary revenue sources?

Adobe derives the bulk of its $25.20 billion TTM revenue from subscription services, with digital media and digital experience segments contributing the majority. TTM gross profit stands at $22.53 billion, reflecting high-margin software sales.

What competitive advantages does Adobe hold?

Trading Data

Open: $216.5
Previous Close: $212.17
Day Range: $216.15 – $226.93
Volume: 4.7102M
Shares Outstanding: 397.5M
Analyst Target: $269.61

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Company Overview

Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.

Fundamental Snapshot

Revenue: 25.198B
EBITDA: 9.729B
Gross Profit: 22.528B
Operating Margin: 35.3%
Profit Margin: 28.7%
ROE: 62.9%
Book Value: $28.87
Beta: 1.433
52-Wk High: $376.16
52-Wk Low: $190.12
Avg Volume: 4.7041M
PEG Ratio: 0.597

Frequently Asked Questions

What is Adobe's business model?

Adobe operates a subscription-based SaaS model centered on Creative Cloud, Document Cloud, and Experience Cloud platforms. It generates recurring revenue from millions of users worldwide through monthly or annual licenses for tools like Photoshop and Acrobat.

What are Adobe's primary revenue sources?

Adobe derives the bulk of its $25.20 billion TTM revenue from subscription services, with digital media and digital experience segments contributing the majority. TTM gross profit stands at $22.53 billion, reflecting high-margin software sales.

What competitive advantages does Adobe hold?

Adobe benefits from deep ecosystem lock-in, industry-standard file formats like PDF, and continuous AI innovation. Its 13.56 trailing P/E and 89% institutional ownership highlight strong market positioning versus competitors.

What are the key risks for ADBE investors?

Key risks include a beta of 1.43 amplifying market swings, competition in cloud software, and macro headwinds. No dividend is paid, with focus instead on reinvestment; the stock trades between its 52-week low of $190.12 and high of $376.16.

What is Adobe's growth outlook?

Adobe shows solid growth with 12.7% quarterly revenue growth and 7.9% earnings growth. Analysts set a target price of $272.48 with mostly buy ratings, supported by forward P/E of 9.73 and expanding AI-driven product offerings.