Adobe Past Earnings Performance
Past criteria checks 4/6
Adobe has been growing earnings at an average annual rate of 6.8%, while the Software industry saw earnings growing at 21.9% annually. Revenues have been growing at an average rate of 10.7% per year. Adobe's return on equity is 63%, and it has net margins of 29.5%.
Key information
6.78%
Earnings growth rate
9.59%
EPS growth rate
| Software Industry Growth | 17.33% |
| Revenue growth rate | 10.73% |
| Return on equity | 63.05% |
| Net Margin | 29.48% |
| Next Earnings Update | 11 Jun 2026 |
Recent past performance updates
Recent updates
New Narrative • May 07
Good Value for a Creative Monopoly
Adobe’s strategic positioning ensures it remains the creative industry’s "operating system," regardless of whether AI succeeds or fails. By building Firefly exclusively on licensed Adobe Stock and public domain content, Adobe has created a unique "legal moat" that offers enterprise customers commercial safety and IP indemnity that competitors cannot match.Seeking Alpha • May 06
Adobe: The Next Nokia?
Summary Adobe faces existential risk as generative AI threatens to erode its product uniqueness and mass-market user base. Despite a forward P/E of 10.4x–12x and $24B TTM revenue, I rate ADBE a Sell due to looming margin compression and competitive threats. Management's $25B share buyback prioritizes short-term share support over critical R&D investment, jeopardizing long-term technological leadership. Leadership transition and a strategic pivot to integrating third-party AI signal capitulation, echoing historical declines like Nokia’s post-2008 trajectory. Read the full article on Seeking Alpha
New Narrative • May 04
Classic Value Trap
Adobe was an amazing company. I'm an end user since 1991.
Narrative Update • Apr 30
ADBE: AI Competition And CEO Transition Will Reshape Future Cash Flows
Adobe's updated analyst price target has shifted from about $580 to roughly $456 as analysts factor in rising AI competition, a series of target cuts across major firms, and added uncertainty around the CEO transition and annual recurring revenue trends. Analyst Commentary Recent research on Adobe clusters around a few key themes that matter for you as an investor: how the market is pricing AI competition, what the CEO transition means for execution, and how annual recurring revenue trends feed into valuation.
Narrative Update • Apr 16
ADBE: Generative AI And Freemium Adoption Will Shape Future Earnings Power
Adobe's analyst price target has been adjusted slightly higher, with analysts pointing to updated expectations for revenue growth, profit margins, and future P/E in light of recent Q1 results, CEO transition news, and ongoing discussion around AI related opportunities and headwinds. Analyst Commentary Wall Street views on Adobe are mixed, with many firms trimming price targets and recalibrating ratings after the Q1 print and the CEO transition update.Narrative Update • Apr 01
ADBE: Generative AI Monetization And Freemium User Growth Will Drive Future Revenue
Adobe's updated fair value estimate has been reduced from about $408 to roughly $328 as analysts factor in a lower future P/E, softer growth assumptions, and fresh uncertainty tied to the CEO transition and AI-driven shifts in its core businesses. Analyst Commentary Recent research on Adobe reflects a clear reset in expectations, with many firms cutting price targets and adjusting ratings to reflect CEO transition risk, AI related disruption, and softer growth metrics such as net new annual recurring revenue.Analysis Article • Apr 01
Why Adobe's (NASDAQ:ADBE) Earnings Are Better Than They Seem
The market seemed underwhelmed by the solid earnings posted by Adobe Inc. ( NASDAQ:ADBE ) recently. Along with the...
Narrative Update • Mar 18
ADBE: CEO Transition Will Intensify AI Monetization Uncertainty And Multiple Compression
Analysts have reduced the Adobe price target to $220 from $271.93, reflecting softer revenue growth assumptions, a lower future P/E outlook, and heightened uncertainty around the CEO transition and the pace of AI driven monetization. Analyst Commentary Recent research on Adobe shows a clear tilt toward caution, with multiple price target cuts and rating downgrades clustering around the latest fiscal Q1 report and the CEO transition announcement.Narrative Update • Mar 04
ADBE: AI Adoption And Generative Credits Will Drive Future Revenue Milestones
Our updated view trims Adobe's fair value estimate from $447.56 to $408.47, reflecting a lower assumed future P/E of about 21.2x. This is in line with a wave of reduced Street price targets around $290 to $375 and analyst concerns about competitive pressure, AI related execution risks, and more muted near term upside for the shares.
New Narrative • Mar 01
Adobe Inc. (ADBE): Defending the Creative Moat – Pre-Earnings Pulse in a Generative AI Era
Adobe (ADBE) enters March 2026 at a critical crossroads, currently trading at $262.41 as of the February 27 close. The stock has weathered a punishing 2025 and early 2026, down roughly 42% from its 52-week high, primarily due to "AI existentialism"—the market's fear that generative AI competitors might commoditize Adobe’s core Creative Cloud.Narrative Update • Feb 18
ADBE: AI Transition And Creative Ecosystem Partnerships Will Reshape Future Cash Flows
Our fair value estimate for Adobe has edged higher to $580.27 from $575.83 as analysts broadly reduce price targets and ratings in response to softer Digital Media growth expectations, questions about the durability of the competitive moat, and concerns that AI benefits may be slower to show up in revenue and margins than previously hoped. Analyst Commentary Recent Street research on Adobe has tilted more cautious, with several firms cutting ratings and price targets as they reassess Digital Media growth expectations, competition, and the timing of AI monetization.Narrative Update • Feb 04
ADBE: AI Transition And Semrush Deal Will Reshape Future Cash Flows
Analysts have trimmed their fair value estimate for Adobe slightly, to about $576 per share. They cite a wave of recent downgrades and reduced price targets that reflect concerns about limited near term upside, competitive pressure in creative tools, and uncertainty over how much the current AI transition will benefit the business.Narrative Update • Jan 21
ADBE: Future AI And Semrush Deal Will Reshape Cash Flow Profile
Analysts have reduced their Adobe fair value estimate by about US$7 to roughly US$578, citing a lower future P/E assumption and recent price target cuts that reflect concerns about near term growth momentum and competitive pressures. Analyst Commentary Recent Street research on Adobe has tilted more cautious, with several firms cutting ratings and price targets as they reassess expectations around AI driven growth, competitive intensity and near term execution.Narrative Update • Jan 07
ADBE: Future AI And Marketing Deals Will Reshape Cash Flow Profile
Narrative Update on Adobe Analysts have revised their Adobe fair value estimate from $605.00 to about $585.69. This reflects slightly lower revenue growth and profit margin assumptions, a somewhat higher discount rate, and a partially offsetting increase in the future P/E input in their models.Narrative Update • Dec 23
ADBE: Rising AI Costs Will Pressure Margins And Drive Multiple Compression
Analysts have reduced their fair value estimate for Adobe from $380.00 to about $271.93 per share, citing expectations for slightly slower revenue growth, lower long term profit margins, and a more conservative valuation multiple. Analyst Commentary Bearish analysts have become more vocal on Adobe, pointing to a combination of moderating growth expectations and tighter competitive dynamics across creative, document, and marketing workflows.Narrative Update • Dec 20
Adobe Stock: When Creativity Software Becomes an AI-Native Platform
Adobe (NASDAQ: ADBE) has spent decades defining how digital creativity is produced, edited, and distributed. From Photoshop to Premiere to Acrobat, its tools are embedded deeply into professional and consumer workflows.Narrative Update • Dec 09
ADBE: AI Adoption And Acquisitions Will Drive Future Revenue Milestones
Analysts have nudged their average price target on Adobe slightly lower, trimming fair value by about $3 to approximately $448 as they factor in modestly slower revenue growth, slightly softer long term margins, and a marginally higher discount rate, despite continued momentum in AI driven products. Analyst Commentary Analysts remain divided on Adobe's outlook, with most acknowledging solid execution in the near term but reassessing the pace and durability of growth as the company leans further into AI infused offerings.Narrative Update • Nov 24
ADBE: Ongoing AI Product Adoption Will Drive Early Revenue Milestones And Overcome Doubts
Adobe's analyst price target has been revised downward by approximately $6 to $450. Analysts are trimming future growth and profit expectations in light of continued AI-driven uncertainty and evolving competitive dynamics.
New Narrative • Oct 09
A Fair Price for a Great Business Facing Real Threats
TLDR; "HOLD" The story of Adobe today is that of a wide-moat champion that has been knocked from its pedestal. After a deep-dive analysis, our conclusion is that Adobe remains a world-class business, but the competitive landscape has fundamentally changed.Narrative Update • Sep 23
Firefly And GenStudio Will Transform Marketing And Boost Future Engagement
Analysts have reduced Adobe’s price target to $456.18 due to persistent AI-related uncertainty, slowing revenue growth, and intensified competition, despite continued strong execution and early AI monetization progress. Analyst Commentary Ongoing AI uncertainty and heightened competitive pressures are weighing on long-term growth assumptions and sector valuation multiples, leading to widespread target cuts, despite continued Outperform/Overweight ratings from many bullish analysts.Narrative Update • Sep 08
Firefly And GenStudio Will Transform Marketing And Boost Future Engagement
Analysts moderately lowered Adobe's price target to $475.45 amid mixed views—bulls cite resilient margins, disciplined execution, and AI potential, while bears flag Creative Cloud market share losses and AI competition—leaving fair value edging slightly lower. Analyst Commentary Bullish analysts highlight Adobe’s potential as a long-term AI winner, citing its commercially safe generative content approach, resilient top line, disciplined expense management, and industry-leading margins as supportive of attractive long-term value.Analysis Article • Jul 02
We Think Adobe's (NASDAQ:ADBE) Robust Earnings Are Conservative
The subdued stock price reaction suggests that Adobe Inc.'s ( NASDAQ:ADBE ) strong earnings didn't offer any surprises...Analysis Article • Jun 27
Analyst Estimates: Here's What Brokers Think Of Adobe Inc. (NASDAQ:ADBE) After Its Second-Quarter Report
Adobe Inc. ( NASDAQ:ADBE ) last week reported its latest quarterly results, which makes it a good time for investors to...Analysis Article • May 27
We Like Adobe's (NASDAQ:ADBE) Returns And Here's How They're Trending
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...Seeking Alpha • Apr 23
Adobe: Near 50% Decline Creates Great Buying Opportunity (Rating Upgrade)
Summary You might have missed it, but Adobe's stock has been crushed. The company has a net cash balance sheet, top-tier GAAP margins, and an aggressive share repurchase program. Consensus estimates might be optimistic, but it doesn't matter. I am upgrading the stock to a strong buy rating. Read the full article on Seeking AlphaSeeking Alpha • Apr 09
OpenAI's Breakthrough Is Terrible For Adobe
Summary Rapidly advancing AI image/video generators (e.g., OpenAI’s 4o) threaten Adobe’s long-standing creative software dominance. As AI democratizes content creation, Adobe’s premium subscription model faces commoditization risks. Despite headwinds, Adobe’s strong revenue growth and massive user base offer a foundation for pivoting into AI. Adobe must keep pace with resource-heavy tech giants and specialized AI startups or risk losing its competitive moat. Read the full article on Seeking AlphaNew Narrative • Apr 08
Firefly And GenStudio Will Empower Creative Evolution
AI product integration, like Firefly and GenStudio, aims to boost user engagement, supporting revenue growth and enhancing monetization.New Narrative • Apr 08
Generative AI, Firefly App And Express Will Expand Future Reach
AI integration and new app expansions boost user engagement and capture next-gen users, driving subscription sales and revenue growth.Seeking Alpha • Mar 19
Adobe: Strong FCF Growth, But Growth Stabilization Needed
Summary Adobe's 1Q FY2025 earnings beat expectations, but weak 2Q guidance points to a continued growth slowdown and margin contraction despite improving GenAI monetization. Management reiterated its FY2025 outlook despite delivering better-than-expected 1Q FY2025 earnings. 1Q FY2025 total bookings declined 1.9% YoY, marking the first negative growth since 2Q FY2022 and raising concerns about weaker demand. Despite the growth slowdown, the company delivered strong FCF, with sequential growth acceleration. The 10% post-earnings selloff seems overdone, presenting a buying opportunity as the stock trades at 19.6x non-GAAP forward P/E. Read the full article on Seeking AlphaSeeking Alpha • Mar 13
Adobe Has Become A GARP Play (Rating Upgrade)
Summary Adobe Inc.'s GenAI tools, including Firefly, offer significant growth potential by streamlining marketing workflows, potentially allowing for growth during a time of budgetary constraints across marketing departments. Adobe's integrated Firefly subscription and One Adobe platform aim to enhance creative and marketing collaboration, driving strong growth prospects. Despite being a late mover in GenAI, ADBE's focus on safety and enterprise integration provides a competitive edge in the crowded AI market. Read the full article on Seeking AlphaSeeking Alpha • Mar 07
Adobe Is A Compelling Buy
Summary Adobe's reliable subscription-based model and strong fundamentals, including impressive revenue and net income growth, make it a solid investment. Adobe's comprehensive software suite and seamless cloud integration provide a significant competitive moat, despite increasing competition and AI advancements. Valuation is reasonable, with forward P/E ratios and price/free cash flow multiples aligning well with sector averages, presenting a good entry point. Despite competitive risks, Adobe's financial health and strategic AI integration position it well for sustained growth and shareholder returns. Read the full article on Seeking AlphaSeeking Alpha • Feb 27
Adobe: Buy This Overlooked Industry Leader At A Reasonable Price
Summary Adobe stock is 36% off its all-time high, making it reasonably priced despite slower growth and competition from cheaper alternatives like Canva. Adobe's growth has slowed to the low-double digits, but it remains a growing industry leader, and the growth rate is expected to be relatively steady from here. Adobe's Creative Cloud and continuous innovation in AI keep it indispensable for professionals, with an estimated 37 million Creative Cloud subscribers. I expect more buybacks from the company, which should support the share price. Read the full article on Seeking AlphaSeeking Alpha • Feb 12
Adobe's AI Strategy Is Paying Off: Why This Stock Could Surge
Summary Adobe is undervalued at $450, with a target price of $600, driven by strong subscription revenue and AI integration. Despite competition fears, Adobe's core audience remains loyal, and AI features are boosting customer retention and engagement. Adobe's financials are robust, with 89% gross margins, growing revenue, and significant free cash flow, making it a stable investment. The market is overlooking Adobe's potential, presenting a great buying opportunity with at least a 33% upside in the next 12 months. Read the full article on Seeking AlphaRevenue & Expenses Breakdown
Revenue & Expenses Breakdown
How Adobe makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 27 Feb 26 | 24,453 | 7,208 | 8,308 | 4,378 |
| 28 Nov 25 | 23,769 | 7,130 | 8,061 | 4,294 |
| 29 Aug 25 | 23,181 | 6,957 | 7,826 | 4,195 |
| 30 May 25 | 22,601 | 6,869 | 7,576 | 4,129 |
| 28 Feb 25 | 22,037 | 6,751 | 7,373 | 4,031 |
| 29 Nov 24 | 21,505 | 5,560 | 7,215 | 3,944 |
| 30 Aug 24 | 20,947 | 5,360 | 7,041 | 3,834 |
| 31 May 24 | 20,429 | 5,079 | 6,934 | 3,693 |
| 01 Mar 24 | 19,936 | 4,801 | 6,836 | 3,585 |
| 01 Dec 23 | 19,409 | 5,428 | 6,764 | 3,473 |
| 01 Sep 23 | 18,886 | 5,121 | 6,661 | 3,357 |
| 02 Jun 23 | 18,429 | 4,854 | 6,556 | 3,251 |
| 03 Mar 23 | 17,999 | 4,737 | 6,392 | 3,113 |
| 02 Dec 22 | 17,606 | 4,756 | 6,187 | 2,987 |
| 02 Sep 22 | 17,191 | 4,813 | 5,955 | 2,871 |
| 03 Jun 22 | 16,693 | 4,889 | 5,703 | 2,747 |
| 04 Mar 22 | 16,142 | 4,827 | 5,494 | 2,621 |
| 03 Dec 21 | 15,785 | 4,822 | 5,406 | 2,540 |
| 03 Sep 21 | 15,099 | 5,839 | 5,185 | 2,441 |
| 04 Jun 21 | 14,389 | 5,582 | 4,974 | 2,356 |
| 05 Mar 21 | 13,682 | 5,566 | 4,770 | 2,276 |
| 27 Nov 20 | 12,868 | 5,260 | 4,559 | 2,188 |
| 28 Aug 20 | 12,436 | 3,861 | 4,403 | 2,130 |
| 29 May 20 | 12,045 | 3,699 | 4,313 | 2,053 |
| 28 Feb 20 | 11,661 | 3,232 | 4,256 | 1,997 |
| 29 Nov 19 | 11,171 | 2,951 | 4,125 | 1,930 |
| 30 Aug 19 | 10,644 | 2,778 | 4,033 | 1,846 |
| 31 May 19 | 10,101 | 2,652 | 3,855 | 1,756 |
| 01 Mar 19 | 9,552 | 2,682 | 3,611 | 1,654 |
| 30 Nov 18 | 9,030 | 2,591 | 3,366 | 1,538 |
| 31 Aug 18 | 8,572 | 2,414 | 3,173 | 1,446 |
| 01 Jun 18 | 8,122 | 2,167 | 3,017 | 1,362 |
| 02 Mar 18 | 7,699 | 1,879 | 2,903 | 1,288 |
| 01 Dec 17 | 7,302 | 1,694 | 2,822 | 1,224 |
| 01 Sep 17 | 6,903 | 1,592 | 2,722 | 1,158 |
| 02 Jun 17 | 6,526 | 1,443 | 2,645 | 1,091 |
| 03 Mar 17 | 6,153 | 1,313 | 2,536 | 1,024 |
| 02 Dec 16 | 5,854 | 1,169 | 2,486 | 976 |
| 02 Sep 16 | 5,552 | 992 | 2,419 | 939 |
| 03 Jun 16 | 5,306 | 896 | 2,342 | 909 |
| 04 Mar 16 | 5,070 | 799 | 2,299 | 884 |
| 27 Nov 15 | 4,796 | 630 | 2,217 | 863 |
| 28 Aug 15 | 4,562 | 495 | 2,182 | 856 |
| 29 May 15 | 4,350 | 365 | 2,186 | 849 |
Quality Earnings: ADBE has high quality earnings.
Growing Profit Margin: ADBE's current net profit margins (29.5%) are lower than last year (30.6%).
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: ADBE's earnings have grown by 6.8% per year over the past 5 years.
Accelerating Growth: ADBE's earnings growth over the past year (7%) exceeds its 5-year average (6.8% per year).
Earnings vs Industry: ADBE earnings growth over the past year (7%) did not outperform the Software industry 13%.
Return on Equity
High ROE: ADBE's Return on Equity (63%) is considered outstanding.
Return on Assets
Return on Capital Employed
Discover strong past performing companies
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/07 16:13 |
| End of Day Share Price | 2026/05/07 00:00 |
| Earnings | 2026/02/27 |
| Annual Earnings | 2025/11/28 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Adobe Inc. is covered by 64 analysts. 37 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Joseph Bonner | Argus Research Company |
| Robert Oliver | Baird |
| Saket Kalia | Barclays |