NASDAQ · Technology

Adobe Inc.

ADBE · Software - Application

$249.52

▲ 0.6 (0.24%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

N/A⤢

Fin. Health

F⤢

Years to Pay Off Debt 4.1 yrs

Working Capital vs Long-Term Debt -$7.8B

Working Capital -$3.0B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 8.61x

Cash Flow

A⤢

Free Cash Flow $2.1B

CapEx % of Net Income 3.4%

Owner Earnings $2.0B

Financial Health

Years to Pay Off Debt 4.1 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$7.8B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$3.0B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $2.1B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 3.4%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.0B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Market Data

Market Cap $99.2B

Enterprise Value $99.7B

P/E (TTM) 13.92

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin N/A

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 $249.52.

The business passes only 1 of 5 of Graham's defensive criteria — well below his required standard.

At $249.52, the stock trades at a 355% premium to its Graham Number of $54.88. 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: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q3 2026	Q4 2025
Gross Profit %	N/A•	89.5%
Operating Margin %	N/A•	36.5%
Net Income %	N/A•	30.0%
Diluted EPS	4.62▲	4.45

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025
Total Assets	$29.9B	$29.5B
Total Debt	$7.1B▲	$6.6B
Working Capital	-$3.0B▼	-$37M
Years to Pay Debt	4.13	3.58

Cash Flow Highlights

Metric	Q2 2026	Q4 2025
Free Cash Flow	$2.1B▼	$3.1B
Owner Earnings	$2.0B	$2.1B
CapEx % of Net Income	3.4%	1.8%

Income Statement

	2026	2025
Tax Effect Of Unusual Items		-721
Tax Rate For Calcs		0
Normalized EBITDA		2,518,000
Total Unusual Items		-4,000
Total Unusual Items Excluding Goodwill		-4,000
Net Income From Continuing Operation Net Minority Interest		1,856,000
Reconciled Depreciation		184,000
Reconciled Cost Of Revenue		502,000
EBITDA		2,514,000
EBIT		2,330,000
Net Interest Income		198,000
Interest Expense		66,000
Normalized Income		1,859,279
Net Income From Continuing And Discontinued Operation		1,856,000
Total Expenses		3,933,000
Total Operating Income As Reported		2,261,000
Diluted Average Shares	395,000	417,000
Basic Average Shares	395,000	417,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders		1,856,000
Net Income Common Stockholders		1,856,000
Net Income		1,856,000
Net Income Including Noncontrolling Interests		1,856,000
Net Income Continuous Operations		1,856,000
Tax Provision		408,000
Pretax Income		2,264,000
Other Income Expense		-195,000
Other Non Operating Income Expenses
Gain On Sale Of Security		-4,000
Net Non Operating Interest Income Expense		198,000
Interest Expense Non Operating		66,000
Operating Income		2,261,000
Operating Expense		3,284,000
Depreciation Amortization Depletion Income Statement		37,000
Depreciation And Amortization In Income Statement		37,000
Amortization		37,000
Amortization Of Intangibles Income Statement		37,000
Research And Development		1,098,000
Selling General And Administration		2,149,000
Selling And Marketing Expense		1,728,000
General And Administrative Expense		421,000
Other Gand A		421,000
Gross Profit		5,545,000
Cost Of Revenue		649,000
Total Revenue		6,194,000
Operating Revenue		6,194,000

Balance Sheet

	2026	2025
Treasury Shares Number	202,000	188,000
Ordinary Shares Number	399,000	413,000
Share Issued	601,000	601,000
Net Debt	1,726,000	779,000
Total Debt	7,065,000	6,648,000
Tangible Book Value	-3,535,000	-1,729,000
Invested Capital	18,163,000	17,833,000
Working Capital	-3,010,000	-37,000
Net Tangible Assets	-3,535,000	-1,729,000
Capital Lease Obligations	420,000	438,000
Common Stock Equity	11,518,000	11,623,000
Total Capitalization	16,320,000	17,833,000
Total Equity Gross Minority Interest	11,518,000	11,623,000
Stockholders Equity	11,518,000	11,623,000
Gains Losses Not Affecting Retained Earnings	-247,000	-245,000
Other Equity Adjustments	-247,000	-245,000
Treasury Stock	53,418,000	48,847,000
Retained Earnings	48,767,000	45,354,000
Additional Paid In Capital	16,416,000	15,361,000
Total Liabilities Net Minority Interest	18,415,000	17,873,000
Total Non Current Liabilities Net Minority Interest	6,337,000	7,673,000
Other Non Current Liabilities	572,000	508,000
Tradeand Other Payables Non Current	536,000	469,000
Non Current Deferred Liabilities	98,000	125,000
Non Current Deferred Revenue	98,000	125,000
Long Term Debt And Capital Lease Obligation	5,131,000	6,571,000
Long Term Capital Lease Obligation	329,000	361,000
Long Term Debt	4,802,000	6,210,000
Current Liabilities	12,078,000	10,200,000
Other Current Liabilities	700,000	714,000
Current Deferred Liabilities	7,152,000	6,905,000
Current Deferred Revenue	7,152,000	6,905,000
Current Debt And Capital Lease Obligation	1,934,000	77,000
Current Capital Lease Obligation	91,000	77,000
Current Debt	1,843,000
Other Current Borrowings	1,843,000
Pensionand Other Post Retirement Benefit Plans Current	1,223,000	1,345,000
Current Provisions	122,000	137,000
Payables And Accrued Expenses	947,000	1,022,000
Current Accrued Expenses	222,000	197,000
Payables	725,000	825,000
Total Tax Payable	226,000	408,000
Income Tax Payable	38,000	153,000
Accounts Payable	499,000	417,000
Total Assets	29,933,000	29,496,000
Total Non Current Assets	20,865,000	19,333,000
Other Non Current Assets	1,645,000	1,610,000
Non Current Deferred Assets	1,998,000	2,186,000
Non Current Deferred Taxes Assets	1,998,000	2,186,000
Goodwill And Other Intangible Assets	15,053,000	13,352,000
Other Intangible Assets	1,012,000	495,000
Goodwill	14,041,000	12,857,000
Net PPE	2,169,000	2,185,000
Accumulated Depreciation		-1,728,000
Gross PPE	2,169,000	3,913,000
Leases		250,000
Construction In Progress		37,000
Other Properties	2,169,000	312,000
Machinery Furniture Equipment		1,507,000
Buildings And Improvements		1,646,000
Land And Improvements		161,000
Current Assets	9,068,000	10,163,000
Other Current Assets	1,449,000	1,224,000
Receivables	1,993,000	2,344,000
Accounts Receivable	1,993,000	2,344,000
Allowance For Doubtful Accounts Receivable	-14,000	-13,000
Gross Accounts Receivable	2,007,000	2,357,000
Cash Cash Equivalents And Short Term Investments	5,626,000	6,595,000
Other Short Term Investments	707,000	1,164,000
Cash And Cash Equivalents	4,919,000	5,431,000
Cash Equivalents	4,153,000	4,720,000
Cash Financial	766,000	711,000

Cash Flow

	2026	2025
Free Cash Flow	2,107,000	3,126,000
Repurchase Of Capital Stock	-2,111,000	-2,474,000
Issuance Of Debt	493,000	0
Issuance Of Capital Stock	0	0
Capital Expenditure	-58,000	-34,000
Interest Paid Supplemental Data	43,000	50,000
Income Tax Paid Supplemental Data	964,000	514,000
End Cash Position	4,919,000	5,431,000
Beginning Cash Position	6,332,000	4,982,000
Effect Of Exchange Rate Changes	-9,000	-10,000
Changes In Cash	-1,404,000	459,000
Financing Cash Flow	-1,855,000	-2,555,000
Cash Flow From Continuing Financing Activities	-1,855,000	-2,555,000
Net Other Financing Charges	-237,000	-81,000
Net Common Stock Issuance	-2,111,000	-2,474,000
Common Stock Payments	-2,111,000	-2,474,000
Common Stock Issuance	0	0
Net Issuance Payments Of Debt	493,000	0
Net Long Term Debt Issuance	493,000	0
Long Term Debt Issuance	493,000	0
Investing Cash Flow	-1,714,000	-146,000
Cash Flow From Continuing Investing Activities	-1,714,000	-146,000
Net Other Investing Changes	2,000
Net Investment Purchase And Sale	-98,000	-115,000
Sale Of Investment	350,000	486,000
Purchase Of Investment	-448,000	-601,000
Net Business Purchase And Sale		0
Purchase Of Business		0
Net PPE Purchase And Sale	-58,000	-34,000
Purchase Of PPE	-58,000	-34,000
Operating Cash Flow	2,165,000	3,160,000
Cash Flow From Continuing Operating Activities	2,165,000	3,160,000
Change In Working Capital	-421,000	741,000
Change In Other Working Capital	-223,000	496,000
Change In Payables And Accrued Expense	-177,000	428,000
Change In Accrued Expense	235,000	375,000
Change In Payable	-412,000	53,000
Change In Account Payable	12,000	87,000
Change In Tax Payable	-424,000	-34,000
Change In Income Tax Payable	-424,000	-34,000
Change In Prepaid Assets	-137,000	67,000
Change In Receivables	116,000	-250,000
Changes In Account Receivables	116,000	-250,000
Other Non Cash Items	30,000	11,000
Stock Based Compensation	534,000	489,000
Deferred Tax	47,000	-121,000
Deferred Income Tax	47,000	-121,000
Depreciation Amortization Depletion	193,000	184,000
Depreciation And Amortization	193,000	184,000
Depreciation	193,000	184,000
Net Income From Continuing Operations	1,712,000	1,856,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.75x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$2.1B

vs Positive

Operating Cash Flow

$2.2B

Latest quarter · Buffett's cash reality check

ROIC

nan%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

8.6x

Net Assets: $11.5B

Asset Context — Software - Application

Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.

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

0.22%

Low — management has little skin in the game

Share Buybacks (Latest Year)

$11.3B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+6.1% YoY

Debt is roughly stable

Leadership Team

Shantanu Narayen

Chairman & CEO

Age 61

Pay: $5,797,825

David Wadhwani

President of Creativity & Productivity Business

Age 53

Pay: $1,885,686

Anil Chakravarthy

President of Customer Experience Orchestration Business

Age 57

Pay: $1,889,926

Steven Day

Interim CFO and Senior VP of Finance, Technology, Security & Operations

Age 57

Douglas Clark

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	10.35%	41,156,085
Vanguard Capital Management LLC	6.64%	26,405,210
State Street Corporation	5.16%	20,515,508
Invesco Ltd.	3.69%	14,654,959
Geode Capital Management, LLC	2.92%	11,615,763
Vanguard Portfolio Management LLC	2.36%	9,363,848
Arrowstreet Capital, Limited Partnership	1.71%	6,787,022
Morgan Stanley	1.36%	5,390,521

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

1.42

Moderate volatility — moves slightly more than market

Short Interest

4.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.57x

Conservative balance sheet — low financial risk

Current Ratio

0.77x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $190.12 Current: $249.52 High: $368.73

Currently at 33% of 52-week range

Adobe Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis