Adobe is the foundational provider of Digital Media and Digital Experience software, positioned as an S-D3 Enterprise SaaS utility. Its subscription model ensures recurring revenue and provides an extremely durable competitive moat anchored in Creative Cloud and Document Cloud ubiquity. The current strategy focuses on leveraging GenAI (Firefly) integration to drive consumption-based value capture.
ADBE operates at peak Compounder efficiency (M1), evidenced by a TTM Gross Margin of 89.14% and a robust Rule of 40 score of 52.13 (derived from 10.72% YoY revenue growth and 41.41% TTM FCF margin). This efficiency generates massive operational float ($9.6B TTM FCF) which funds the necessary R&D (18.17% intensity) required to secure its core workflow against disruption. The core alpha angle is the successful pivot to monetize GenAI consumption credits, effectively transitioning fixed revenue into an aggressive, high-margin variable layer without sacrificing subscription lock-in. This secular push (T6) provides a durable growth catalyst, stabilizing momentum with 1.96% sequential growth, which offsets baseline sensitivity to financial conditions (C5). Insider confidence is strong with over $43M in net buying reported in the last six months, validating management's conviction.
| Market Cap | None |
| PE Ratio (TTM) | None |
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| Price | 350.37 |
What do you have to believe?
Growth vs Discount Rate
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