Adobe

ADB.DE

Software - Application · Technology

Price

€236.10

+2.80 (+1.20%)

Market Cap

€93.85B

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through May 31, 2026

How the score breaks down

Quality

Exceptional

Growth

Strong

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Strong

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Share count falling — buybacks

−11.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 481.0M (2021) → 427.0M (2025)

Winston Score History

The full picture

Adobe makes software that people use to create and edit photos, videos, documents, and designs. Its most well-known products include Photoshop, Illustrator, Acrobat, and Premiere Pro. Customers range from professional designers and filmmakers to everyday people and large businesses across media, marketing, and education.

Adobe earns most of its money through subscriptions, where customers pay a monthly or yearly fee to access its Creative Cloud and Document Cloud software. The company operates globally, with a large portion of revenue coming from North America and Europe, and generates roughly $21 billion in annual revenue. Its main competitive advantage is that its tools are deeply embedded in professional workflows, making it hard for customers to switch — but the rise of AI-powered design tools from competitors like Canva and startups using generative AI is a real and growing threat to its market position.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+7.6% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$4.3B/ year

↑ Rising (+9% vs prior year)

18.1% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$5.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Adobe is putting 18% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

88.6%

Premium pricing power — 88.6% gross margin

Profit after running costs

Operating Margin

33.8%

Excellent — 33.8% operating margin

Return on the money invested

ROCE

49.8%

Exceptional — 49.8% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+11.4%

Steady sales growth (+11.4% YoY)

Profit growth

EPS YoY

+11.4%

Earnings growing (+11.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

145%

Turns 145% of profit into real cash

Spare cash per sale

FCF Margin

40.8%

Converts sales into free cash efficiently (40.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.58

Conservative — low debt load (0.58)

Covers its interest

Interest Cover

34.83x

Comfortably covers interest (34.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

13.5x

Attractive valuation — P/E 13.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+4.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (13.5 → 8.7)

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Dividends

Not applicable for this business.

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