ADBE
ADOBE INC.
Technology • CIK: 0000796343
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Market Cap
$154.10B
P/E (TTM)
22.2x
Rev Growth (TTM)
+10.7%
Net Margin (TTM)
30.0%
FCF Yield (TTM)
6.2%
FCF Margin (TTM)
41.4%
Cash Flow Health
Free Cash Flow8/8 positive
TTM$9.6B
Q3 '25
$2.1B-1%
Q2 '25
$2.1B-13%
FCF Margin
TTM41.4%
Q3 '2535.5%-3%
Sector: 14.5%Top 10%
OCF Margin42.2%
OCF/NI1.41x
CapEx Coverage50.7x
FCF Yield6.2%
FCF Growth (2Y)+10%
Cash Conversion Cycle
-19 days
DSO: 30+DIO: 0−DPO: 50
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM7.3%
Div Yield0.0%
+Buyback (TTM)7.3%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$9.6B
Stock Repurchases (TTM)$11.3B
Capital Return / FCF117.8%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
105.1%
Moderate
+0.4% YoY+14.5%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
29.8%
8Q: 29.2%
Asset Turnover
0.79x
8Q: 0.73x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 23.5% ≈ 105.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
12.11x
8Q:11.24x
+268.1%
Invested Cap Turn
3.53x
8Q:2.67x
+175.8%
CapEx Intensity
2.9%
8Q:2.3%
CapEx/Depreciation
0.23x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $23.2B | $6.0B↑2.0% | $5.9B↑2.8% | $5.7B↑1.9% | $5.6B↑3.7% | $5.4B↑1.9% | $5.3B↑2.5% | $5.2B↑2.7% | $5.0B |
Operating Income | $8.4B | $2.2B↑3.0% | $2.1B↓2.5% | $2.2B↑10.5% | $2.0B↓1.8% | $2.0B↑5.7% | $1.9B↑107.8% | $907.0M↓48.0% | $1.7B |
Net Income | $7.0B | $1.8B↑4.8% | $1.7B↓6.6% | $1.8B↑7.6% | $1.7B↓0.1% | $1.7B↑7.1% | $1.6B↑153.7% | $620.0M↓58.2% | $1.5B |
Operating Cash Flow | $9.8B | $2.2B↑0.3% | $2.2B↓11.7% | $2.5B↓15.0% | $2.9B↑44.5% | $2.0B↑4.2% | $1.9B↑65.2% | $1.2B↓26.5% | $1.6B |
Free Cash Flow | $9.6B | $2.1B↓0.8% | $2.1B↓12.7% | $2.5B↓14.5% | $2.9B↑46.3% | $2.0B↑3.4% | $1.9B↑67.0% | $1.1B↓26.6% | $1.6B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
22.2x
Valuation Lenses
Earnings
22.2x
vs – sector
Cash Flow
20.1x
EV/FCF vs –
Growth-Adj
0.6xPEG
Undervalued for growth
Quality-Adj
0.2P/E per %ROIC
ROIC: 105.1%
Shareholder Returns
Dividend
–
Buyback
7.3%
Total Yield
7.3%
Market Cap$154.10B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
85/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 10%
53.7%
8Q:–
Return on Invested Capital (ROIC)Top 25%
1.1%
8Q:–
+14.5%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 29.8%
Asset Turnover: 0.79x
Earnings Quality
Cash Conversion
1.41x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin89.1%
Capital Efficiency
Invested Capital Turnover3.53x
Working Capital
Cash Conversion Cycle-19 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
66/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
10.7%
OpInc Growth YoY
9.1%
EPS Growth YoY
35.5%
FCF 3Y CAGR
10.4%
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
89.1%
Operating
36.2%
Top 25% in sector
Net
30.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+11.4 pts
FCF: 41.4% | Net: 30.0%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $5.94B
Interest Coverage
–
+Net cash position: $5.94B
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis