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Adobe Systems Incorporated (ADBE)



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Upturn Advisory Summary
09/12/2025: ADBE (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $457.81
1 Year Target Price $457.81
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 148.20B USD | Price to earnings Ratio 22.37 | 1Y Target Price 457.81 |
Price to earnings Ratio 22.37 | 1Y Target Price 457.81 | ||
Volume (30-day avg) 38 | Beta 1.49 | 52 Weeks Range 330.04 - 557.90 | Updated Date 09/14/2025 |
52 Weeks Range 330.04 - 557.90 | Updated Date 09/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 15.62 |
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 2025-09-11 | When After Market | Estimate 5.18 | Actual 5.31 |
Profitability
Profit Margin 30.01% | Operating Margin (TTM) 36.29% |
Management Effectiveness
Return on Assets (TTM) 18.09% | Return on Equity (TTM) 52.88% |
Valuation
Trailing PE 22.37 | Forward PE 15.06 | Enterprise Value 149048512000 | Price to Sales(TTM) 6.39 |
Enterprise Value 149048512000 | Price to Sales(TTM) 6.39 | ||
Enterprise Value to Revenue 6.59 | Enterprise Value to EBITDA 15.85 | Shares Outstanding 424200000 | Shares Floating 421777530 |
Shares Outstanding 424200000 | Shares Floating 421777530 | ||
Percent Insiders 0.18 | Percent Institutions 86.04 |
Upturn AI SWOT
Adobe Systems Incorporated

Company Overview
History and Background
Adobe Systems Incorporated was founded in December 1982 by John Warnock and Charles Geschke. Initially focused on developing printing and publishing software, it achieved early success with PostScript, a page description language. Over time, Adobe expanded into creative software, digital marketing, and cloud services through strategic acquisitions and organic growth.
Core Business Areas
- Digital Media: This segment encompasses Adobe's creative software, including Photoshop, Illustrator, Premiere Pro, and others, offered primarily through the Creative Cloud subscription service. It also includes document productivity tools like Acrobat.
- Digital Experience: This segment focuses on providing solutions for digital marketing and customer experience management. Key products include Adobe Experience Manager, Adobe Analytics, and Adobe Marketo Engage, offered through the Experience Cloud.
- Publishing and Advertising: This segment focuses on providing digital publishing and advertising solutions to digital publishers and advertisers.
Leadership and Structure
Shantanu Narayen is the Chairman and CEO. The company operates with a typical corporate structure, including executive leadership, product development teams, sales and marketing divisions, and support functions.
Top Products and Market Share
Key Offerings
- Photoshop: The industry-standard software for image editing and graphic design. Photoshop commands a significant market share in the image editing software market. Competitors include GIMP, Corel PHOTO-PAINT, Affinity Photo.
- Illustrator: A leading vector graphics editor used for creating logos, illustrations, and print layouts. It also commands a significant market share in the vector graphics software market. Competitors include CorelDRAW, Affinity Designer, Inkscape.
- Premiere Pro: A professional video editing software used for film, television, and online video production. Competitors include Apple Final Cut Pro, Blackmagic DaVinci Resolve, Avid Media Composer.
- Adobe Acrobat: The leading software for creating, viewing, and editing PDF documents. Competitors include Nitro PDF Pro, Foxit PDF Editor, PDFelement.
- Adobe Experience Manager: A comprehensive digital experience platform. Competitors include Salesforce Experience Cloud, SAP Customer Experience, Sitecore Experience Platform.
Market Dynamics
Industry Overview
The software industry is highly competitive and rapidly evolving. The shift to cloud-based subscription models is a major trend. Digital transformation is driving demand for creative tools and digital marketing solutions.
Positioning
Adobe is positioned as a leader in creative software and digital experience solutions. Its competitive advantages include a strong brand reputation, a comprehensive product portfolio, and a large customer base.
Total Addressable Market (TAM)
The total addressable market for digital media and digital experience solutions is estimated to be hundreds of billions of dollars. Adobe is well-positioned to capture a significant share of this market, particularly in high growth areas such as generative AI enhanced creative products.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Comprehensive product portfolio
- Large customer base
- Recurring revenue model (subscription-based)
- Strong financial performance
- Innovation in AI-driven features
Weaknesses
- High subscription costs for individual products
- Reliance on subscription model could limit adoption in some segments
- Competition from open-source or lower-cost alternatives
- Exposure to cybersecurity threats
- Complexity of some products can be a barrier to entry
Opportunities
- Growth in digital content creation
- Expanding into new markets (e.g., emerging economies)
- Integration of AI and machine learning into products
- Strategic acquisitions to expand product offerings
- Partnerships with other technology companies
- Expansion of Digital Experience Platform into new verticals
Threats
- Intense competition from other software companies
- Economic downturns impacting IT spending
- Piracy and unauthorized use of software
- Rapid technological changes
- Data privacy regulations
- Emerging disruptive technologies (e.g., open-source AI tools)
Competitors and Market Share
Key Competitors
- MSFT
- CRM
- ORCL
Competitive Landscape
Adobe benefits from a well-established ecosystem and brand, particularly in the creative segment. However, competitors like Microsoft and Salesforce have significant resources and established enterprise relationships in the Digital Experience space.
Major Acquisitions
Frame.io
- Year: 2021
- Acquisition Price (USD millions): 1275
- Strategic Rationale: To enhance video collaboration capabilities in Premiere Pro and After Effects.
Marketo
- Year: 2018
- Acquisition Price (USD millions): 4750
- Strategic Rationale: To strengthen marketing automation capabilities in Experience Cloud.
Growth Trajectory and Initiatives
Historical Growth: Adobe has experienced significant growth over the past decade, driven by the transition to cloud-based subscriptions and acquisitions.
Future Projections: Analysts project continued growth in revenue and earnings per share for Adobe, driven by demand for creative software and digital experience solutions. Focus remains on Gen AI.
Recent Initiatives: Recent initiatives include integrating AI into existing products (Adobe Sensei), strategic acquisitions in the digital marketing space, and expansion into new markets.
Summary
Adobe is a strong company with a leading position in creative software and digital experience solutions. Its subscription model provides recurring revenue, and its focus on innovation, especially in AI, is promising. However, high subscription costs and intense competition are ongoing challenges, along with cybersecurity risks and macroeconomic concerns.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Adobe Investor Relations
- Company Filings (SEC)
- Market Research Reports
- Analyst Estimates (Yahoo Finance, Bloomberg)
Disclaimers:
This analysis is based on publicly available information and analyst estimates. It is for informational purposes only and should not be considered financial advice. Market conditions and company performance 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. operates as a technology company worldwide. Its Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content; Document Cloud, a cloud-based document services platform; and 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, game developers, content creators, students, marketers, knowledge workers, and consumers. The company's Digital Experience segment provides an integrated platform; and 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. Its Publishing and Advertising segment offers e-learning, technical document publishing, web conferencing, document and forms platform, web application development, high-end printing, and Adobe Advertising solutions. It provides consulting, training, customer management, technical support, and learning services. The company offers its solutions to enterprise customers, and businesses and consumers; and licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added resellers, and original equipment and hardware 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.

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