# Adobe Inc. (ADBE) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/ADBE/thesis · /stocks/ADBE/memo

## Financial Snapshot

---
ticker: ADBE
step: 04
generated: 2026-05-12
source: quick-research
---

### Adobe Inc. (ADBE) — Financial Snapshot

(Adobe's fiscal year ends late November/early December; FY2025 = year ending ~Dec 2025.)

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|--------|--------|--------|--------|------------|
| Revenue | $19.41B | $21.51B | $23.77B | +10.5% |
| Non-GAAP Operating Margin | ~46% | ~46% | ~46% | flat |
| GAAP Operating Margin | ~36% | ~36% | ~36% | flat |
| Non-GAAP EPS | $16.07 | $18.42 | $20.94 | +13.7% |
| GAAP EPS | ~$11.82 | ~$15.13 | ~$15.85 | +5% |

#### Segment Detail (FY2025)

| Segment | Revenue | YoY |
|---------|---------|-----|
| Digital Media (Creative + Document) | $17.6B | +12% |
| Creative Cloud | ~$14.5B | +11% |
| Document Cloud | ~$3.5B | +18% |
| Digital Experience | $5.7B | +9% |
| Publishing & Advertising | ~$0.3B | flat |

#### ARR Detail

| Metric | FY2025 |
|--------|--------|
| Digital Media Net New ARR | $2.0B+ |
| AI-Influenced ARR | $1B+ run-rate |
| AI-Influenced Revenue Mix | >1/3 of total |
| FY2026 Net New ARR Target | $2.6B (highest beginning-of-year guide in company history) |
| FY2026 Total ARR Growth | +10.2% |

#### Cash Flow & Capital Allocation (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$10B |
| Free Cash Flow | ~$9.5B |
| Q4 FCF Margin | 50.5% |
| Share Repurchases | ~$10B (annual run-rate) |
| Cash & Investments | ~$8B |
| Total Debt | ~$6B |
| Dividend | None (buyback-only return) |

#### FY2026 Guidance

| Metric | Guide |
|--------|-------|
| Revenue | $25.9–26.1B (+9% midpoint) |
| Non-GAAP EPS | $23.30–23.50 (+11–12%) |
| GAAP EPS | $17.90–18.10 |
| Non-GAAP Operating Margin | ~46% |
| Net New ARR | $2.6B (record) |

Q1 FY26 Guide: Revenue $6.25–6.3B; Non-GAAP EPS $5.85–5.90; Non-GAAP Operating Margin ~47%.

#### Key Ratios (approximate)
- P/E: ~18x (FY26 non-GAAP) | EV/EBITDA: ~15x | FCF Yield: ~5.5%
- Revenue Growth (FY25): +10.5% | FCF Margin: ~40%
- Non-GAAP Operating Margin: 46%
- Buyback Yield: ~5–6%
- ROIC: ~30%+

#### Growth Profile
Adobe delivered FY25 in line with the multi-year +10–12% revenue growth algorithm and signaled FY26 net-new-ARR guidance of $2.6B — the company's highest beginning-of-year guide ever. The key strategic narrative is **AI monetization scaling**:
- AI-influenced ARR >$1B run-rate; growing fast.
- Firefly Generative Credits providing consumption revenue on top of seat subscriptions.
- Acrobat AI Assistant adding per-seat upsell to Document Cloud installed base.
- Commercial-safety positioning (legal indemnification) defending enterprise share.

Operating margin remains industry-leading at ~46% non-GAAP; ROIC ~30%+. Free-cash-flow margin >40% with consistent ~$10B annual buybacks.

#### Forward Estimates
FY2026 Guide:
- Revenue: $25.9–26.1B (+9%)
- Non-GAAP EPS: $23.30–23.50 (+11–12%)

Bull case: Net new ARR exceeds $2.6B guide on Firefly + AI Assistant + GenStudio + Express adoption; AI consumption credits become 5%+ of revenue by FY27; margin expansion resumes despite AI investment. Bear case: Canva/Figma erosion accelerates at mid-market; OpenAI Sora cannibalizes pro video tools; net new ARR misses $2.4B and growth decelerates to mid-single-digits. Sell-side targets $510–620 vs. trading ~$400–440 (~25–55% implied upside reflecting current SaaSpocalypse discount).

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/ADBE/fundamental

## Navigation

- Overview: /stocks/ADBE
- Financials (this page): /stocks/ADBE/financials
- Thesis: /stocks/ADBE/thesis
- Investment Memo: /stocks/ADBE/memo
- Coverage universe: /stocks