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Adobe Systems Incorporated (ADBE)



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Upturn Advisory Summary
08/28/2025: ADBE (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $480.95
1 Year Target Price $480.95
19 | Strong Buy |
6 | Buy |
13 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -43.97% | Avg. Invested days 26 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 151.16B USD | Price to earnings Ratio 22.83 | 1Y Target Price 480.95 |
Price to earnings Ratio 22.83 | 1Y Target Price 480.95 | ||
Volume (30-day avg) 38 | Beta 1.52 | 52 Weeks Range 330.04 - 587.75 | Updated Date 08/27/2025 |
52 Weeks Range 330.04 - 587.75 | Updated Date 08/27/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 15.61 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 30.39% | Operating Margin (TTM) 35.91% |
Management Effectiveness
Return on Assets (TTM) 17.85% | Return on Equity (TTM) 52.25% |
Valuation
Trailing PE 22.83 | Forward PE 15.36 | Enterprise Value 152013670000 | Price to Sales(TTM) 6.69 |
Enterprise Value 152013670000 | Price to Sales(TTM) 6.69 | ||
Enterprise Value to Revenue 6.73 | Enterprise Value to EBITDA 16.16 | Shares Outstanding 424200000 | Shares Floating 422974062 |
Shares Outstanding 424200000 | Shares Floating 422974062 | ||
Percent Insiders 0.18 | Percent Institutions 86.1 |
Upturn AI SWOT
Adobe Systems Incorporated

Company Overview
History and Background
Founded in 1982 by John Warnock and Charles Geschke, Adobe Systems Incorporated revolutionized desktop publishing with PostScript. Key milestones include the release of Photoshop, Illustrator, and the shift to a subscription-based model with Creative Cloud.
Core Business Areas
- Digital Media: Provides tools and services for creative professionals and consumers, including Photoshop, Illustrator, Premiere Pro, and Acrobat. Includes the Creative Cloud subscription service.
- Digital Experience: Offers solutions for marketing, analytics, advertising, and commerce through the Adobe Experience Cloud. Focuses on helping businesses manage and optimize customer experiences.
- Publishing and Advertising: Legacy segment with a mix of offerings, including legacy desktop products and advertising solutions.
Leadership and Structure
Shantanu Narayen is the Chairman and CEO. The organizational structure is divided into business units focusing on Digital Media, Digital Experience, and Publishing and Advertising. Each unit has its leadership team responsible for product development, marketing, and sales.
Top Products and Market Share
Key Offerings
- Photoshop: Industry-standard image editing software. Holds significant market share in professional photo editing with an estimated 90% market share. Competitors: GIMP, Affinity Photo, Corel PaintShop Pro. Estimated revenue within digital media segment is significant. Number of users is in the tens of millions.
- Illustrator: Vector graphics editor used for creating logos, illustrations, and designs. Leading vector graphics software with a strong market share, though precise figures are less readily available. Competitors: CorelDRAW, Affinity Designer. Estimated revenue within digital media segment is significant. Number of users is in the tens of millions.
- Acrobat: PDF software for creating, editing, and managing PDF documents. Dominant market share in PDF software. Competitors: Nitro PDF, Foxit PDF Editor. Estimated revenue within digital media segment is significant. Number of users is in the tens of millions.
- Adobe Experience Cloud: A suite of digital marketing tools, including analytics, marketing automation, and content management systems. Competitors include Salesforce, Oracle, and SAP. Market Share Varies by Product within the cloud. Number of users is in the hundreds of thousands of business customers.
Market Dynamics
Industry Overview
The software industry is characterized by rapid technological advancements, intense competition, and a shift towards cloud-based subscription models. Artificial intelligence (AI) integration and mobile accessibility are key trends.
Positioning
Adobe is a leader in digital media and digital experience solutions. Its competitive advantages include a strong brand reputation, a comprehensive product portfolio, and a large user base. Furthermore, the company has very high switching costs due to the large investment in learning and mastering the software.
Total Addressable Market (TAM)
The digital transformation and cloud computing TAM is expected to reach trillions of USD. Adobe is well positioned to capture a significant portion of this TAM with its comprehensive product suite.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- Comprehensive Product Portfolio
- Subscription-Based Revenue Model
- High Switching Costs
- Innovation in AI and Machine Learning
Weaknesses
- High Subscription Costs can deter some users
- Complexity of software can deter some users
- Dependence on subscription renewals
- High market valuation
Opportunities
- Expansion into emerging markets
- Growth in digital experiences
- Further integration of AI
- New product development
Threats
- Intense competition
- Piracy of software
- Economic downturns
- Rapid technological changes
Competitors and Market Share
Key Competitors
- MSFT
- CRM
- ORCL
Competitive Landscape
Adobe has advantages in creative software and digital experience platforms. Its subscription model provides a recurring revenue stream. Competitors such as Microsoft and Salesforce have a broader range of solutions, while smaller companies focus on niche markets.
Major Acquisitions
Figma
- Year: 2022
- Acquisition Price (USD millions): 20000
- Strategic Rationale: Acquisition to expand collaborative design and prototyping capabilities but ultimately failed to be approved by regulators.
Growth Trajectory and Initiatives
Historical Growth: Adobe has experienced significant growth in recent years, driven by the shift to cloud-based subscriptions and increasing demand for digital media and digital experience solutions.
Future Projections: Analysts project continued growth for Adobe, driven by the expansion of the digital media and digital experience markets. The expected growth will be between 10-15% per year.
Recent Initiatives: Recent strategic initiatives include acquisitions to expand its product portfolio and investments in AI and machine learning.
Summary
Adobe is a strong company with a leading position in digital media and digital experience solutions. Its subscription-based model provides a stable revenue stream and strong cash flow. However, it faces competition from larger players like Microsoft and Salesforce and needs to continue to innovate to maintain its competitive edge. A weakness is the relatively high cost of the software which can deter potential users.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Yahoo Finance
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly, and past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Adobe Systems Incorporated
Exchange NASDAQ | Headquaters San Jose, CA, United States | ||
IPO Launch date 1986-08-20 | Chairman & CEO Mr. Shantanu Narayen | ||
Sector Technology | Industry Software - Application | Full time employees 30709 | Website https://www.adobe.com |
Full time employees 30709 | Website https://www.adobe.com |
Adobe Inc., together with its subsidiaries, operates as a technology company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows subscribers to use its creative products and applications (apps) integrated with cloud-delivered services across various surfaces and platforms. This segment serves photographers, video editors, graphic and experience designers, and game developers; content creators, students, marketers, and knowledge workers; and consumers. The Digital Experience segment provides an integrated platform and set of products, services, and solutions 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 Adobe Advertising offerings. It provides consulting, training, customer management, technical support, and learning services. The company offers its solutions directly to enterprise customers through its sales force and local field offices, and directly to businesses and consumers, as well as licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through sales channels, including distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added res

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