Latest update
$206
Updated: Jun 15, 2026, 9:37 PM UTC
Browsing public data
Adobe Inc. reported Q2 2026 revenue of $6.6B, representing a 12.7% YoY increase, with net income growing 1.2% YoY to $1.7B. Free cash flow decreased slightly by 1.7% YoY to $2.1B. The company exhibits strong profitability with an 89.4% gross margin and 33.8% operating margin, leading to a high ROE of 63.0%. Valuation multiple appears attractive with a TTM P/E of 11.8x and a NTM P/E of 7.5x. While the balance sheet debt load is manageable and debt service is strong, current and quick ratios are below 1, suggesting short-term liquidity bears watching. Share count is shrinking, indicating active shareholder returns. The company is positioned in Digital Media and Digital Experience segments, offering creative and marketing solutions, and has a strategic alliance with HUMAIN for generative AI development.
Revenue
The total dollars the company billed customers. When this number grows quarter after quarter, the business is finding more demand.
Latest
↑$6.6B
Q2 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
→+3.4%
vs Q1 2026
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
↑+12.7%
vs Q2 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
Net income
What's left from revenue after paying every cost — employees, materials, taxes, interest. Sometimes called profit or 'the bottom line.'
Latest
↓$1.7B
Q2 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
↓-9.4%
vs Q1 2026
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
→+1.2%
vs Q2 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
Free cash flow
The cash actually left in the bank after the company has paid for everything and reinvested in itself. Harder to fake than net income.
Latest
↓$2.1B
Q2 2026
The most recent reported figure, in the company's own currency and reporting cadence.
QoQ
↓-27.9%
vs Q1 2026
How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.
YoY
→-1.7%
vs Q2 2025
How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.
CAGR
•—
insufficient history
The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.
| Metric | 3 yr | 2 yr | 1 yr |
|---|---|---|---|
| Revenue | — | — | +12.7% $5.9B→$6.6B |
| Net income | — | — | +1.2% $1.7B→$1.7B |
| Free cash flow | — | — | -1.7% $2.1B→$2.1B |
P/E TTM
↑11.8×
Trailing twelve months. Today's price divided by the last year of actual earnings.
P/E NTM
↑7.5×
Next twelve months. Today's price divided by what analysts expect the company to earn over the coming year.
Profitability
↑Strong
Operating margin (and the wider return profile) tells you how efficiently each dollar of sales becomes profit. High and rising = pricing power; low or falling = the business is grinding.
Share count
↑Shrinking
Are the buybacks outrunning the stock-based comp? A shrinking share count means every existing share owns a bigger slice of future earnings.
Debt load
→Manageable
Total debt against cash and earnings power (EBITDA). Light debt leaves room to invest and weather downturns; heavy debt shrinks the margin for error.
Debt service
↑Strong
Whether the cash the business generates easily covers its interest and loan payments. Strong here = no forced selling in a bad year.
Cash return at today's price
↑10.8%
Free cash flow divided by market cap — the cash yield you're getting for the price you pay. Above ~6% is rich, below ~3% is thin. P/E shown when the yield is too small to be useful.
The stock is in a confirmed markdown phase with strong technical deterioration. The price is deeply entrenched below key moving averages, and increased volume on selling signals strong institutional distribution. The extreme underperformance against benchmarks underscores the weakness. While some fundamental metrics are appealing, they are currently overshadowed by aggressive selling. Entering now carries high risk.
Short-term thesis
While Adobe exhibits strong underlying profitability and an attractive valuation, the current market dynamics are overwhelmingly negative. The stock is in a severe markdown phase, trading well below key averages with significant selling pressure. Fundamental strengths, such as high margins and shareholder returns, are not currently preventing price erosion. A tactical avoidance is prudent until the technical picture shows signs of stabilization, regardless of the long-term potential in Digital Media, Experience, and AI.
Long-term exposure
Avoid
The business or valuation backdrop is not ready for long-term conviction.
Entry window
Trim / avoid
Adobe stock is in a clear downtrend, trading significantly below its daily and weekly moving averages with expanding selling volume. All momentum indicators are negative, and the stock is showing severe underperformance against both the broader market and its sector. While fundamentals present some positive aspects, the immediate technical picture is very weak, suggesting further downside is likely in the short term. Investors should avoid this stock for now.
Risk check
Fragile
The downside can widen quickly if this setup goes wrong.
Alignment
Aligned
The weekly weakness matches a poor long-term backdrop.
What supports it
What limits it
Long-term thesis
The increasing demand for digital content creation, editing, and management, amplified by the mainstream adoption of generative AI tools, will drive sustained growth for Adobe's Digital Media and Digital Experience segments.
Bottleneck Role
Adobe serves as a critical enabler (bottleneck) for digital content creation, editing, and personalized digital experiences. Its Creative Cloud tools are industry standard, and its Experience Cloud helps businesses manage customer journeys. The integration of generative AI enhances its ability to alleviate content creation bottlenecks and automate experience delivery.
Consensus Blind Spot
The consensus might be underestimating Adobe's ability to seamlessly integrate generative AI into its existing, widely adopted suite of products, thereby reinforcing its competitive moats and driving new revenue streams through enhanced productivity and innovative features. The current valuation may not fully account for the long-term impact of AI on its subscription model and market dominance.
Demand Gap
There is a growing demand gap for efficient, scalable, and personalized digital content creation and customer experience management, particularly with the explosion of digital touchpoints and the need for high-quality, frequently refreshed content frameworks across diverse platforms. Generative AI offers tools to bridge this gap, and Adobe is positioned to capture this.
Demand to Equity Scenarios
Slower adoption of generative AI in creative workflows; increased competition from open-source AI tools or new entrants; economic slowdown impacting enterprise IT/marketing spend.
Demand
-10%
Earnings
-15%
Equity implication
-25%
Reduced subscription growth, competitive pricing pressure, and slower adoption of new features leading to lower average revenue per user (ARPU).
Steady migration to digital and cloud-based creative tools; moderate adoption of AI-enhanced features; consistent enterprise spend on digital experience platforms.
Demand
+8%
Earnings
+10%
Equity implication
+15%
Consistent revenue growth from existing subscribers and modest expansion into new user segments, with AI features incrementally enhancing value.
Rapid, widespread adoption of generative AI across creative professionals and enterprises, significantly boosting demand for Adobe's integrated AI-powered tools; continued market share dominance and strong pricing power.
Demand
+20%
Earnings
+25%
Equity implication
+40%
Accelerated subscription growth across both Digital Media and Digital Experience segments, higher ARPU from premium AI features, and expanded market reach due to enhanced product capabilities.
Dependency Chain
Repricing Triggers
Must be true
Thesis broken if
Jun 15, 2026
LatestUpdated Jun 15, 2026, 9:37 PM UTC
Price at review
$206
Adobe stock is in a clear downtrend, trading significantly below its daily and weekly moving averages with expanding selling volume. All momentum indicators are negative, and the stock is showing severe underperformance against both the broader market and its sector. While fundamentals present some positive aspects, the immediate technical picture is very weak, suggesting further downside is likely in the short term. Investors should avoid this stock for now.