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ADBE

9/9 Score

Adobe Inc.

Analysis Date: February 21, 2026

Adobe Inc. operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, workers, marketers, educators, enthusiasts, communicators, and consumers. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Advertising Cloud offerings. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and original equipment manufacturers. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 59.5%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 36.7%

  • Cash Machine

    FCF / Assets > 5%

    Value: 33.4%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 6.6%

  • Share Buybacks

    Share Count is Dropping

    Value: -4.7%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 89.1%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Technology

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.57x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 53.1%

Analysis Summary

Adobe's financials paint a picture of a well-run company, showing excellent returns on both equity and invested capital, which is a strong signal. The company's ability to generate cash consistently and its wide, defensible moat in the technology space are particularly attractive, suggesting a durable competitive advantage. While the valuation isn't exactly a bargain, the overall strength across nearly all our criteria makes this a business worth a closer look for the long haul.

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