Adobe (ADBE) Stock Analysis

November 11, 2026

This is a peer-relative look at Adobe (ADBE): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Adobe (ADBE)
Profile Item	ADBE
Name	Adobe Inc.
Country/Region	United States
GICS Sector	Information Technology
GICS Industry Group	Software & Services
GICS Industry	Software
GICS Sub-Industry	Application Software
Market Capitalization	93.14 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	August 13, 1986
Security Type	Common Stock

Price Performance

Cumulative Growth

ADBE

GSPC

Adobe (ADBE) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for Adobe (ADBE) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…

Calendar-year total returns for Adobe (ADBE) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Adobe (ADBE) metric values compared with Software & Services industry-group medians
Metric	Current stock: ADBE	Industry group median
Total Return (1Y)	-27.09%	-3.00%
Total Return (3Y, Annualized)	-25.55%	8.28%
Total Return (5Y, Annualized)	-18.62%	-7.91%

Risk Profile

Drawdown History

ADBE

GSPC

Adobe (ADBE) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…

Distribution of monthly total returns for Adobe (ADBE) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Adobe (ADBE) metric values compared with Software & Services industry-group medians
Metric	Current stock: ADBE	Industry group median
Volatility (1Y, Annualized)	41.62%	61.69%
Beta (5Y)	1.38	1.06
Max Drawdown (5Y)	-71.90%	-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ADBE is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Adobe (ADBE) metric values compared with Software & Services industry-group medians
Metric	Current stock: ADBE	Industry group median
Sharpe Ratio (1Y)	-0.75	-0.13
Sortino Ratio (1Y)	-1.04	-0.19

Profitability

ROE (TTM)

Adobe (ADBE) posts ROE of 61.90%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

ADBE

Software & Services industry group

61.90%

Group distribution

ADBE: 61.90%
Max: 53.85%
Q3: 17.90%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Largest peers

ADBE: 61.90%
ORCL: 41.19%
PLTR: 40.91%
IBM: 34.77%
MSFT: 34.22%
SAP: 18.18%
PANW: 1.74%

Where Adobe (ADBE) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Adobe (ADBE) keeps 28.05% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

ADBE

Software & Services industry group

28.05%

Group distribution

Max: 41.17%
ADBE: 28.05%
Q3: 15.28%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Largest peers

PLTR: 50.34%
MSFT: 41.17%
ADBE: 28.05%
ORCL: 26.36%
SAP: 20.41%
IBM: 15.99%
PANW: 2.67%

Where Adobe (ADBE) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Adobe (ADBE) turns 34.82% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

ADBE

Software & Services industry group

34.82%

Group distribution

Max: 46.89%
ADBE: 34.82%
Q3: 17.64%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Largest peers

MSFT: 49.76%
PLTR: 46.89%
ORCL: 35.63%
ADBE: 34.82%
SAP: 29.50%
IBM: 16.97%
PANW: 5.40%

Where Adobe (ADBE) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Adobe (ADBE) metric values compared with Software & Services industry-group medians
Metric	Current stock: ADBE	Industry group median
ROE (TTM)	61.90%	6.59%
ROA (TTM)	20.08%	2.45%
Net Margin (TTM)	28.05%	4.63%
Operating Margin (TTM)	34.82%	8.73%
Gross Margin (TTM)	89.25%	70.07%

Growth

Revenue Growth

Adobe (ADBE) grew revenue 10.53%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Adobe (ADBE): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

Adobe (ADBE) grew earnings per share 35.11%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Adobe (ADBE): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

Adobe (ADBE) metric values compared with Software & Services industry-group medians
Metric	Current stock: ADBE	Industry group median
Revenue Growth (YoY)	10.53%	14.22%
Revenue Growth (3Y CAGR)	10.52%	13.52%
EPS Growth (YoY)	35.11%	7.85%
EPS Growth (3Y CAGR)	18.25%	18.19%

Financial Strength

Current Ratio (MRQ)

Adobe (ADBE) has current ratio of 0.77, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

ADBE

Software & Services industry group

0.77

Group distribution

Max: 5.11
Q3: 2.77
Median: 1.67
Q1: 1.01
ADBE: 0.77
Min: 0.03

Largest peers

PLTR: 7.10
MSFT: 1.23
ORCL: 1.17
SAP: 1.16
PANW: 0.87
IBM: 0.86
ADBE: 0.77

Where Adobe (ADBE) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Adobe (ADBE) has debt-to-equity ratio of 0.58, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

ADBE

Software & Services industry group

0.58

Group distribution

Max: 2.52
Q3: 1.13
ADBE: 0.58
Median: 0.40
Q1: 0.07
Min: 0.00

Largest peers

ORCL: 2.52
IBM: 1.85
ADBE: 0.58
MSFT: 0.28
SAP: 0.23
PANW: 0.09
PLTR: 0.02

Where Adobe (ADBE) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Adobe (ADBE) metric values compared with Software & Services industry-group medians
Metric	Current stock: ADBE	Industry group median
Current Ratio (MRQ)	0.77	1.67
Debt / Equity (MRQ)	0.58	0.40
Net Debt / EBITDA	0.12	0.17

Dividends

Dividend Yield (TTM)

Adobe (ADBE) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

ADBE

Software & Services industry group

0.00%

Group distribution

ADBE: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

IBM: 2.73%
ORCL: 1.74%
SAP: 1.03%
MSFT: 0.69%
ADBE: 0.00%
PLTR: 0.00%
PANW: 0.00%

Where Adobe (ADBE) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Adobe (ADBE) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

ADBE

Software & Services industry group

0.00%

Group distribution

ADBE: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

IBM: 57.51%
SAP: 36.45%
ORCL: 31.35%
MSFT: 19.00%
ADBE: 0.00%
PLTR: 0.00%
PANW: 0.00%

Where Adobe (ADBE) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Adobe (ADBE) metric values compared with Software & Services industry-group medians
Metric	Current stock: ADBE	Industry group median
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

P/E Ratio (TTM)

Adobe (ADBE) trades at P/E ratio of 13.36, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

ADBE

Software & Services industry group

13.36

Group distribution

Max: 112.94
Q3: 60.32
Median: 32.91
Q1: 18.77
ADBE: 13.36
Min: 6.69

Largest peers

PANW: 784.60
PLTR: 112.94
SAP: 29.07
MSFT: 27.69
IBM: 20.90
ORCL: 18.20
ADBE: 13.36

Where Adobe (ADBE) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Adobe (ADBE) trades at 3.59 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

ADBE

Software & Services industry group

3.59

Group distribution

Max: 17.91
Q3: 8.78
Median: 4.25
ADBE: 3.59
Q1: 2.23
Min: 0.02

Largest peers

PLTR: 53.02
PANW: 22.37
MSFT: 11.37
SAP: 6.84
ORCL: 5.04
ADBE: 3.59
IBM: 3.31

Where Adobe (ADBE) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Adobe (ADBE) trades at 7.95 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

ADBE

Software & Services industry group

7.95

Group distribution

Max: 16.63
Q3: 8.50
ADBE: 7.95
Median: 4.30
Q1: 1.92
Min: -3.90

Largest peers

SAP: 73.25
PLTR: 34.41
PANW: 9.30
MSFT: 8.38
ADBE: 7.95
IBM: 6.52
ORCL: 5.68

Where Adobe (ADBE) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Adobe (ADBE) metric values compared with Software & Services industry-group medians
Metric	Current stock: ADBE	Industry group median
P/E Ratio (TTM)	13.36	32.91
P/S Ratio (TTM)	3.59	4.25
P/B Ratio (MRQ)	7.95	4.30
Free Cash Flow Yield (TTM)	10.03%	3.98%