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Adobe Inc.
NASDAQ: ADBE Technology IT 🔎 Screen
S&P 500 Nasdaq 100
🏹 Trader: 📊 High Volume View all →
$107.5B
Market Cap
19.2
P/E
0.98
PEG
59.3%
ROCE
55.4%
ROE
0.57
D/E
36.6%
OPM
-31.4%
% from 52W High
41
α RS
🔍 ADBE is showing a high-conviction setup because it matches 14 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still strengthening, and large_cap_quality preset's Backtest win rate is 58.2% over 90 days. Net: Broad signal stack, not a recommendation. ? Conviction RRG Backtest
Sources
Conviction 14/39 · Technology in Leading quadrant · Backtest win rate 58.2%
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🌏 Global Investor Returns
Currency-adjusted total returns for ADBE including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
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About

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.

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📈 Growth Pattern
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⭐ Superinvestors Holding ADBE
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 925.3K $224.9M 0.35% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$6.62B
+13% YoY reported; +11% constant currency
Operating Income
$2.24B GAAP; $2.95B non-GAAP
Not disclosed
Operating Margin
GAAP 33.8% / non-GAAP 44.6% implied from reported figures
Not disclosed
Net Income
$1.71B GAAP; $2.40B non-GAAP
Not disclosed; GAAP EPS +8% YoY / non-GAAP EPS +18% YoY
What Went Right
  • Record Q2 revenue of $6.62B, up 13% YoY, with FY26 revenue and non-GAAP EPS targets raised.
  • AI-first ARR more than tripled YoY to over $500M; Firefly ending ARR approached $300M, up roughly 50% QoQ.
  • Business Professionals & Consumers subscription revenue was $1.85B, up 15% constant currency, and Acrobat+Express MAU surpassed 850M, up ~20% YoY.
  • CXO momentum remained strong: GenStudio ARR grew over 25% YoY, AEP and native apps subscription revenue grew over 30% YoY, and AI-first CXO ARR grew 4x YoY.
What to Watch
  • Management explicitly said the strategic freemium shift lowers second-half individual subscriber ARR expectations; FY26 total ARR growth target of 10.2% now includes Semrush and the deliberate slowdown.
  • Adobe deferred previously planned Creative Cloud second-half line optimizations; roughly half of the ARR impact is tied to this deferral.
  • CFO Dan Durn is departing June 15 with Steve Day named interim CFO, adding leadership transition risk during a strategic pivot.
  • Traditional direct-to-paid journeys are less effective as users increasingly arrive via intent-based search, requiring Adobe to re-platform onboarding and monetization in real time.
Management Guidance
  • Q3 FY26 revenue: $6.67B to $6.72B
  • Q3 FY26 GAAP EPS: $4.40 to $4.45; non-GAAP EPS: $6.05 to $6.10; non-GAAP operating margin ~44%
  • FY26 revenue raised to $26.50B to $26.60B; FY26 non-GAAP EPS raised to $24.35 to $24.45
  • FY26 total Adobe ending ARR growth targeted at 10.2% YoY; non-GAAP operating margin ~45%
Investor Lens
After this call, the long-term thesis is arguably stronger: Adobe is converting its massive traffic lead into an aggressive freemium funnel, with AI-first ARR above $500M and Firefly ARR nearing $300M, while still raising FY26 revenue and EPS. The near-term trade-off is deliberate — second-half individual subscriber ARR will be lower and Creative Cloud line optimizations are deferred — but management is betting on MAU-driven lifetime value with payback expected in FY27 and beyond. Execution risk is real given the CFO transition and the speed of AI-driven changes, but Adobe's portfolio breadth across creativity, productivity, and CXO remains a clear differentiator. Net net, the revenue/EPS raise and AI monetization signals support a positive read-through.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 revenue $6.62B (+13% YoY); Adobe pivots strongly to freemium.
Revenue
Revenue was $6.62B in Q2 FY26, up 13% YoY as reported and 11% in constant currency. Business Professionals & Consumers subscription revenue was $1.85B, up 15% constant currency, and Creative & Marketing Professionals subscription revenue was $4.54B, up 11% constant currency. Total customer group subscription revenue rose 14% reported / 12% constant currency to $6.39B.
Profitability
GAAP net income was $1.71B and GAAP EPS was $4.25, up 8% YoY; non-GAAP net income was $2.40B and non-GAAP EPS was $5.96, up 18% YoY. GAAP results included a $0.17 per share non-cash goodwill impairment charge.
Margins
GAAP operating income was $2.24B and non-GAAP operating income was $2.95B in Q2. The company did not disclose an actual Q2 operating margin on the call, but guided Q3 non-GAAP operating margin at ~44% and FY26 at ~45%.
Balance Sheet
Ending cash and short-term investments were $5.63B. Cash flows from operations were $2.17B in Q2, and Adobe repurchased approximately 8.5 million shares during the quarter. Approximately $27B remained under repurchase authorizations, including the new $25B authorization announced in April.
Key Risks
The key risks flagged were the deliberate second-half ARR reset from the freemium shift, the deferral of Creative Cloud line optimizations, and the CFO transition to Steve Day. Management also acknowledged that intent-based search is changing how users discover Adobe, creating execution pressure to convert traffic before monetizing it.
Outlook
For Q3 FY26, Adobe targets total revenue of $6.67B to $6.72B and non-GAAP EPS of $6.05 to $6.10. For FY26, it raised revenue to $26.50B to $26.60B and non-GAAP EPS to $24.35 to $24.45, with total Adobe ending ARR growth targeted at 10.2% YoY.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-06-11
Q2 FY26 revenue grew 11% YoY to $6.62B, driven by strong subscription growth and AI innovation. Strategic focus shifts to expanding freemium offerings, impacting short-term ARR but positioning for long-term user growth. FY26 revenue and EPS guidance raised.
Q1 2026 Q1 2026 2026-03-12
Q1 saw 11% revenue growth to $6.4B, driven by AI-first offerings, record user engagement, and strong enterprise adoption. CEO transition and the pending Semrush acquisition mark significant strategic shifts, while guidance reaffirms double-digit ARR growth for FY 2026.
Q4 2025 Q4 2025 2025-12-10
Record FY25 revenue and EPS growth were driven by strong AI adoption, product innovation, and expanding user engagement across all segments. Strategic moves, including the Semrush acquisition and deepened AI partnerships, position the company for continued double-digit ARR growth in FY26.
Q3 2025 Q3 2025 2025-09-11
Q3 delivered record revenue and double-digit growth, fueled by strong AI adoption and innovation. AI-influenced ARR surpassed $5B, and AI-first product ARR exceeded $250M, prompting raised FY25 guidance. Robust performance across Digital Media and Experience segments, with continued margin strength.
Q2 2025 Q2 2025 2025-06-12
Q2 revenue grew 11% year-over-year to $5.87B, driven by strong digital media and AI adoption. FY25 guidance was raised, with AI-first products tracking ahead of $250M ARR. Over 700M monthly active users and robust enterprise demand highlight continued momentum.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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