ADBE
9/9 ScoreAdobe 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.
Latest Posts
Want More Analysis?
Get detailed scores for thousands of stocks and discover your next investment with the Vetted app.
Download Vetted