Fundamental analysis · SEC EDGAR · TTM through 29/05/2026
ADBE · Nasdaq · Technology
Fundamental quality
84
out of 100
Adobe Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 62.8%) with wide margins (net margin 28.7%) and a business that keeps growing (13% a year). On fundamental quality it scores 84 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +13%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Adobe is the leader in content-creation software: Photoshop, Illustrator, Acrobat (PDF) and design and marketing tools. It sells by subscription, giving it recurring revenue and very high margins.
EPS growth: 9.1% · Revenue growth: 13%
Net margin: 28.7% · ROE: 62.8% · ROIC: 54.5%
Net debt/EBITDA: 0.18x · FCF: 40.8%
Source: SEC EDGAR · TTM through 29/05/2026
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 12,868 | 5,260 | 5,308 | -361 |
| 2021 | 15,785 | 4,822 | 6,882 | 279 |
| 2022 | 17,606 | 4,756 | 7,396 | -107 |
| 2023 | 19,409 | 5,428 | 6,942 | -3,507 |
| 2024 | 21,505 | 5,560 | 7,873 | -1,984 |
| 2025 | 23,769 | 7,130 | 9,852 | 779 |
Between 2020 and 2025, revenue went from $12,868M to $23,769M (+85%) and net income went from $5,260M to $7,130M (+36%). Meanwhile, its margins have narrowed (from 41% to 30%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the half-year ended May 29, 2026, versus the half-year ended May 30, 2025 (SEC filings):
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
This company doesn't pay a dividend: it reinvests all its earnings back into the business.
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Is Adobe Inc. cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Adobe Inc. a good company to invest in?
In terms of business quality, Adobe Inc. scores 84 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Adobe Inc. a profitable company?
Very. Adobe Inc. shows a net margin of 28.7% and an ROE of 62.8%, typical of a highly profitable business.
Does Adobe Inc. have a lot of debt?
Not particularly. Its net debt is 0.18 times its EBITDA, a low level.
Is Adobe Inc. growing?
Its revenue has grown 13% annualized in recent years and its earnings per share 9.1%, and without interruption since 2020.
Does Adobe Inc. generate cash?
Yes. It converts about 40.8% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Who's behind the methodology and model · how the score is computed
Data: see Adobe Inc.'s filings on EDGAR
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