NASDAQ · Technology

Adobe Inc.

ADBE · Software - Application

$253.49

▲ 2.78 (1.11%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Adobe Inc. at $253.49.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 89.3%

Operating Margin 36.6%

Net Income Margin 30.0%

Fin. Health D

Years to Pay Off Debt 0.9 yrs

Working Capital vs Long-Term Debt -$6.2B

Working Capital -$37M

Valuation F

Margin of Safety 0.0%

Price-to-Book 8.82x

Cash Flow A

Free Cash Flow $9.9B

CapEx % of Net Income 2.5%

Owner Earnings $8.1B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $102.5B

Enterprise Value $101.1B

P/E (TTM) 14.78

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 89.3%

Operating Margin 36.6%

Net Margin 30.0%

Company Info

Sector Technology

Industry Software - Application

Employees 31360

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Adobe Inc. at $253.49.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $253.49, the stock trades at a 144% premium to its Graham Number of $103.95. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Adobe Inc.

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	89.3% ▲	89.0%	87.9%	87.7%
Operating Margin %	36.6% ▲	36.0%	34.3%	34.6%
Net Income %	30.0% ▲	25.9%	28.0%	27.0%
Diluted EPS	16.70 ▲	12.36	11.82	10.10

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$29.5B	$30.2B	$29.8B	$27.2B	N/A
Total Debt	$6.6B ↑	$6.1B	$4.1B	$4.6B	N/A
Working Capital	-$37M ▼	$711M	$2.8B	$868M	N/A
Years to Pay Debt	0.93	1.09	0.75	0.97	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$9.9B ▲	$7.9B	$6.9B	$7.4B	N/A
Owner Earnings	$8.1B	$6.6B	$6.7B	$6.1B	N/A
CapEx % of Net Income	2.5%	3.3%	6.6%	9.3%	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	4,860	-196,400	-1,600	-8,400
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	9,788,000	8,939,000	7,792,000	7,016,000
Total Unusual Items	27,000	-982,000	-8,000	-40,000
Total Unusual Items Excluding Goodwill	27,000	-982,000	-8,000	-40,000
Net Income From Continuing Operation Net Minority Interest	7,130,000	5,560,000	5,428,000	4,756,000
Reconciled Depreciation	818,000	857,000	872,000	856,000
Reconciled Cost Of Revenue	1,890,000	1,670,000	1,650,000	1,478,000
EBITDA	9,815,000	7,957,000	7,784,000	6,976,000
EBIT	8,997,000	7,100,000	6,912,000	6,120,000
Net Interest Income	1,000	172,000	156,000	-51,000
Interest Expense	263,000	169,000	113,000	112,000
Interest Income	264,000	341,000	269,000	61,000
Normalized Income	7,107,860	6,345,600	5,434,400	4,787,600
Net Income From Continuing And Discontinued Operation	7,130,000	5,560,000	5,428,000	4,756,000
Total Expenses	15,063,000	13,764,000	12,759,000	11,508,000
Total Operating Income As Reported	8,706,000	6,741,000	6,650,000	6,098,000
Diluted Average Shares	427,000	450,000	459,000	471,000
Basic Average Shares	426,000	447,000	457,000	470,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	7,130,000	5,560,000	5,428,000	4,756,000
Net Income Common Stockholders	7,130,000	5,560,000	5,428,000	4,756,000
Net Income	7,130,000	5,560,000	5,428,000	4,756,000
Net Income Including Noncontrolling Interests	7,130,000	5,560,000	5,428,000	4,756,000
Net Income Continuous Operations	7,130,000	5,560,000	5,428,000	4,756,000
Tax Provision	1,604,000	1,371,000	1,371,000	1,252,000
Pretax Income	8,734,000	6,931,000	6,799,000	6,008,000
Other Income Expense	27,000	-982,000	-7,000	-39,000
Other Non Operating Income Expenses			1,000	1,000
Special Income Charges	0	-1,000,000	0	0
Restructuring And Mergern Acquisition	0	1,000,000	0	0
Gain On Sale Of Security	27,000	18,000	-8,000	-40,000
Net Non Operating Interest Income Expense	1,000	172,000	156,000	-51,000
Interest Expense Non Operating	263,000	169,000	113,000	112,000
Interest Income Non Operating	264,000	341,000	269,000	61,000
Operating Income	8,706,000	7,741,000	6,650,000	6,098,000
Operating Expense	12,512,000	11,406,000	10,405,000	9,343,000
Depreciation Amortization Depletion Income Statement	157,000	169,000	168,000	169,000
Depreciation And Amortization In Income Statement	157,000	169,000	168,000	169,000
Amortization	157,000	169,000	168,000	169,000
Amortization Of Intangibles Income Statement	157,000	169,000	168,000	169,000
Research And Development	4,294,000	3,944,000	3,473,000	2,987,000
Selling General And Administration	8,061,000	7,293,000	6,764,000	6,187,000
Selling And Marketing Expense	6,488,000	5,764,000	5,351,000	4,968,000
General And Administrative Expense	1,573,000	1,529,000	1,413,000	1,219,000
Other Gand A	1,573,000	1,529,000	1,413,000	1,219,000
Gross Profit	21,218,000	19,147,000	17,055,000	15,441,000
Cost Of Revenue	2,551,000	2,358,000	2,354,000	2,165,000
Total Revenue	23,769,000	21,505,000	19,409,000	17,606,000
Operating Revenue	23,769,000	21,505,000	19,409,000	17,606,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	188,000	160,000	146,000	139,000
Ordinary Shares Number	413,000	441,000	455,000	462,000
Share Issued	601,000	601,000	601,000	601,000
Net Debt	779,000				279,000
Total Debt	6,648,000	6,056,000	4,080,000	4,633,000
Tangible Book Value	-1,729,000	535,000	2,625,000	-185,000
Invested Capital	17,833,000	19,733,000	20,152,000	18,180,000
Working Capital	-37,000	711,000	2,833,000	868,000
Net Tangible Assets	-1,729,000	535,000	2,625,000	-185,000
Capital Lease Obligations	438,000	428,000	446,000	504,000
Common Stock Equity	11,623,000	14,105,000	16,518,000	14,051,000
Total Capitalization	17,833,000	18,234,000	20,152,000	17,680,000
Total Equity Gross Minority Interest	11,623,000	14,105,000	16,518,000	14,051,000
Stockholders Equity	11,623,000	14,105,000	16,518,000	14,051,000
Gains Losses Not Affecting Retained Earnings	-245,000	-201,000	-285,000	-293,000
Other Equity Adjustments	-245,000	-201,000	-285,000	-293,000
Treasury Stock	48,847,000	37,583,000	28,129,000	23,843,000
Retained Earnings	45,354,000	38,470,000	33,346,000	28,319,000
Additional Paid In Capital	15,361,000	13,419,000	11,586,000	9,868,000
Total Liabilities Net Minority Interest	17,873,000	16,125,000	13,261,000	13,114,000
Total Non Current Liabilities Net Minority Interest	7,673,000	5,604,000	5,010,000	4,986,000
Other Non Current Liabilities	508,000	446,000	376,000	293,000
Tradeand Other Payables Non Current	469,000	548,000	514,000	530,000
Non Current Deferred Liabilities	125,000	128,000	113,000	117,000
Non Current Deferred Revenue	125,000	128,000	113,000	117,000
Non Current Deferred Taxes Liabilities					5,000
Long Term Debt And Capital Lease Obligation	6,571,000	4,482,000	4,007,000	4,046,000
Long Term Capital Lease Obligation	361,000	353,000	373,000	417,000
Long Term Debt	6,210,000	4,129,000	3,634,000	3,629,000
Current Liabilities	10,200,000	10,521,000	8,251,000	8,128,000
Other Current Liabilities	714,000	603,000	495,000	439,000
Current Deferred Liabilities	6,905,000	6,131,000	5,837,000	5,297,000
Current Deferred Revenue	6,905,000	6,131,000	5,837,000	5,297,000
Current Debt And Capital Lease Obligation	77,000	1,574,000	73,000	587,000
Current Capital Lease Obligation	77,000	75,000	73,000	87,000
Current Debt		1,499,000		500,000
Other Current Borrowings		1,499,000		500,000
Pensionand Other Post Retirement Benefit Plans Current	1,345,000	1,221,000	535,000	485,000
Current Provisions	137,000	141,000	111,000	106,000
Payables And Accrued Expenses	1,022,000	851,000	1,200,000	1,214,000
Current Accrued Expenses	197,000	176,000	679,000	643,000
Interest Payable					34,000
Payables	825,000	675,000	521,000	571,000
Other Payable					40,000
Total Tax Payable	408,000	314,000	207,000	192,000
Income Tax Payable	153,000	119,000	85,000	75,000
Accounts Payable	417,000	361,000	314,000	379,000
Total Assets	29,496,000	30,230,000	29,779,000	27,165,000
Total Non Current Assets	19,333,000	18,998,000	18,695,000	18,169,000
Other Non Current Assets	1,610,000	1,554,000	1,223,000	841,000
Non Current Deferred Assets	2,186,000	1,657,000	1,191,000	777,000
Non Current Deferred Taxes Assets	2,186,000	1,657,000	1,191,000	777,000
Goodwill And Other Intangible Assets	13,352,000	13,570,000	13,893,000	14,236,000
Other Intangible Assets	495,000	782,000	1,088,000	1,449,000
Goodwill	12,857,000	12,788,000	12,805,000	12,787,000
Net PPE	2,185,000	2,217,000	2,388,000	2,315,000
Accumulated Depreciation	-1,728,000	-1,655,000	-1,731,000	-1,569,000
Gross PPE	3,913,000	3,872,000	4,119,000	3,884,000
Leases	250,000	222,000	275,000	259,000
Construction In Progress	37,000	27,000	2,000	675,000
Other Properties	312,000	281,000	358,000	407,000
Machinery Furniture Equipment	1,507,000	1,551,000	1,661,000	1,497,000
Buildings And Improvements	1,646,000	1,628,000	1,660,000	902,000
Land And Improvements	161,000	163,000	163,000	144,000
Current Assets	10,163,000	11,232,000	11,084,000	8,996,000
Other Current Assets	1,224,000	1,274,000	1,018,000	835,000
Prepaid Assets					993,000
Receivables	2,344,000	2,072,000	2,224,000	2,065,000
Accounts Receivable	2,344,000	2,072,000	2,224,000	2,065,000
Allowance For Doubtful Accounts Receivable	-13,000	-14,000	-16,000	-23,000
Gross Accounts Receivable	2,357,000	2,086,000	2,240,000	2,088,000
Cash Cash Equivalents And Short Term Investments	6,595,000	7,886,000	7,842,000	6,096,000
Other Short Term Investments	1,164,000	273,000	701,000	1,860,000
Cash And Cash Equivalents	5,431,000	7,613,000	7,141,000	4,236,000
Cash Equivalents	4,720,000	6,826,000	6,523,000	3,579,000
Cash Financial	711,000	787,000	618,000	657,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	9,852,000	7,873,000	6,942,000	7,396,000
Repurchase Of Capital Stock	-11,281,000	-9,500,000	-4,400,000	-6,550,000
Repayment Of Debt	-1,500,000	0	-500,000	0
Issuance Of Debt	1,997,000	1,997,000	0	0
Issuance Of Capital Stock	348,000	361,000	314,000	278,000
Capital Expenditure	-179,000	-183,000	-360,000	-442,000
Interest Paid Supplemental Data	246,000	143,000	106,000	103,000
Income Tax Paid Supplemental Data	2,219,000	1,727,000	1,854,000	778,000
End Cash Position	5,431,000	7,613,000	7,141,000	4,236,000
Beginning Cash Position	7,613,000	7,141,000	4,236,000	3,844,000
Effect Of Exchange Rate Changes	34,000	-9,000	9,000	-51,000
Changes In Cash	-2,216,000	481,000	2,896,000	443,000
Financing Cash Flow	-11,060,000	-7,724,000	-5,182,000	-6,825,000
Cash Flow From Continuing Financing Activities	-11,060,000	-7,724,000	-5,182,000	-6,825,000
Net Other Financing Charges	-624,000	-582,000	-596,000	-553,000
Net Common Stock Issuance	-10,933,000	-9,139,000	-4,086,000	-6,272,000
Common Stock Payments	-11,281,000	-9,500,000	-4,400,000	-6,550,000
Common Stock Issuance	348,000	361,000	314,000	278,000
Net Issuance Payments Of Debt	497,000	1,997,000	-500,000	0
Net Long Term Debt Issuance	497,000	1,997,000	-500,000	0
Long Term Debt Payments	-1,500,000	0	-500,000	0
Long Term Debt Issuance	1,997,000	1,997,000	0	0
Investing Cash Flow	-1,187,000	149,000	776,000	-570,000
Cash Flow From Continuing Investing Activities	-1,187,000	149,000	776,000	-570,000
Net Other Investing Changes	3,000	2,000	1,000
Net Investment Purchase And Sale	-994,000	330,000	1,135,000	-2,000
Sale Of Investment	1,174,000	497,000	1,188,000	953,000
Purchase Of Investment	-2,168,000	-167,000	-53,000	-955,000
Net Business Purchase And Sale	-17,000	0	0	-126,000
Purchase Of Business	-17,000	0	0	-126,000
Net PPE Purchase And Sale	-179,000	-183,000	-360,000	-442,000
Purchase Of PPE	-179,000	-183,000	-360,000	-442,000
Operating Cash Flow	10,031,000	8,056,000	7,302,000	7,838,000
Cash Flow From Continuing Operating Activities	10,031,000	8,056,000	7,302,000	7,838,000
Change In Working Capital	605,000	144,000	-355,000	336,000
Change In Other Working Capital	771,000	309,000	536,000	536,000
Change In Payables And Accrued Expense	199,000	308,000	86,000	92,000
Change In Accrued Expense	180,000	196,000	146,000	7,000
Change In Payable	19,000	112,000	-60,000	85,000
Change In Account Payable	64,000	44,000	-49,000	66,000
Change In Tax Payable	-45,000	68,000	-11,000	19,000
Change In Income Tax Payable	-45,000	68,000	-11,000	19,000
Change In Prepaid Assets	-90,000	-616,000	-818,000	-94,000
Change In Receivables	-275,000	143,000	-159,000	-198,000
Changes In Account Receivables	-275,000	143,000	-159,000	-198,000
Other Non Cash Items	48,000	52,000	65,000	10,000
Stock Based Compensation	1,942,000	1,833,000	1,718,000	1,440,000
Unrealized Gain Loss On Investment Securities		-35,000	-10,000	29,000	-4,000
Asset Impairment Charge	0	78,000	0	0
Deferred Tax	-512,000	-468,000	-426,000	328,000
Deferred Income Tax	-512,000	-468,000	-426,000	328,000
Depreciation Amortization Depletion	818,000	857,000	872,000	856,000
Depreciation And Amortization	818,000	857,000	872,000	856,000
Depreciation	818,000	857,000	872,000	856,000
Operating Gains Losses		77,000	72,000	83,000	73,000
Gain Loss On Sale Of PPE		77,000	72,000	83,000	73,000
Net Income From Continuing Operations	7,130,000	5,560,000	5,428,000	4,756,000

These metrics estimate what Adobe Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$103.95

Margin of Safety

Market Cap ÷ Company Value

1.53

P/B Ratio

8.82

Warren's Owner Earnings

$8.1B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$23.8B

vs > $1.5B revenue

❌ Strong Financial Condition

1.00x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

✅ Earnings Growth

+65.3% EPS growth

vs > 33% EPS growth

✅ Moderate P/E Ratio

14.8x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

8.82x P/B (P/E×P/B: 130.3)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-19.07

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$239.32

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	2.5%	3.3%	6.6%	9.3%	N/A
Repurchase of Capital Stock	-$11.3B	-$9.5B	-$4.4B	-$6.5B	N/A
Free Cash Flow	$9.9B ▲	$7.9B ▲	$6.9B ▼	$7.4B •	N/A •
Warren's Owner Earnings	$8.1B	$6.6B	$6.7B	$6.1B	N/A

Peers & Industry

No auto-detected peers for Software - Application. You can manually compare ADBE against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.25%

Low — management has little skin in the game

Return on Equity (ROE)

61.3%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

24.2%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$11.3B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+9.8% YoY

Debt is roughly stable

Leadership Team

Shantanu Narayen

Chairman & CEO

Age 61

Pay: $5,797,825

0.081% of net income

Daniel Durn

CFO and Executive VP of Finance, Technology, Security & Operations

Age 59

Pay: $1,858,284

0.026% of net income

David Wadhwani

President of Creativity & Productivity Business

Age 53

Pay: $1,885,686

0.026% of net income

Anil Chakravarthy

President of Customer Experience Orchestration Business

Age 57

Pay: $1,889,926

0.027% of net income

Steven Day

CFO & SVP - Digital Experience Business Unit & SVP of Corporate Finance

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.21%	41,283,446
Blackrock Inc.	10.00%	40,430,222
State Street Corporation	5.07%	20,473,733
Geode Capital Management, LLC	2.85%	11,531,678
NORGES BANK	1.61%	6,500,657
Arrowstreet Capital, Limited Partnership	1.54%	6,228,503
Morgan Stanley	1.53%	6,195,038
Bank Of New York Mellon Corporation	1.38%	5,586,349

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

1.42

Moderate volatility — moves slightly more than market

Short Interest

4.1% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.58x

Conservative balance sheet — low financial risk

Current Ratio

0.91x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $224.13 Current: $253.49 High: $422.95

Currently at 15% of 52-week range

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