Detailed financial statements for Adobe Inc. (ADBE): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Adobe Inc. stands as a prominent global software provider, delivering a diverse range of solutions. Its operations are structured into three primary business divisions: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment empowers individuals, teams, and enterprises to generate, disseminate, and amplify various forms of content through its array of products and services, including the cloud-native Document Cloud platform.
Analysis Summary
Adobe Inc. reported revenue of $23.77B in the most recent fiscal year, growing at a 5-year CAGR of 13.1%. Net income reached $7.13B, with a 6.3% 5-year CAGR.
Trailing-twelve-month margins: gross margin 89.1%, operating margin 35.7%, net margin 28.0%. Free cash flow grew at 13.2% CAGR over 5 years.
At the current price of $238.78, ADBE trades at a P/E of 13.26 and an ROE of 62.88%. Market capitalisation stands at $94.9B, placing it among large-cap names.
Balance sheet quality for ADBE: current ratio of 1.0, net debt of $53.0M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $9.85B represents 138% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.85B | $7.30B | $9.03B | $11.17B | $12.87B | $15.79B | $17.61B | $19.41B | $21.50B | $23.77B |
| Cost of Revenue | $819.9M | $1.01B | $1.19B | $1.67B | $1.72B | $1.86B | $2.17B | $2.35B | $2.36B | $2.55B |
| Gross Profit | $5.03B | $6.29B | $7.84B | $9.50B | $11.15B | $13.92B | $15.44B | $17.05B | $19.15B | $21.22B |
| Research & Development | $976.0M | $1.22B | $1.54B | $1.93B | $2.19B | $2.54B | $2.99B | $3.47B | $3.94B | $4.29B |
| Selling, General & Admin | $2.49B | $2.82B | $3.37B | $4.12B | $4.56B | $5.41B | $6.19B | $6.76B | $7.29B | $8.06B |
| Operating Expenses | $3.54B | $4.12B | $4.99B | $6.23B | $6.91B | $8.12B | $9.34B | $10.40B | $12.41B | $12.51B |
| Operating Income | $1.49B | $2.17B | $2.84B | $3.27B | $4.24B | $5.80B | $6.10B | $6.65B | $6.74B | $8.71B |
| EBITDA | $1.84B | $2.54B | $3.23B | $4.10B | $5.05B | $6.67B | $7.05B | $7.78B | $7.96B | $9.81B |
| Interest Expense | $70.4M | $74.4M | $89.0M | $157.0M | $116.0M | $113.0M | $112.0M | $113.0M | $164.0M | $263.0M |
| Pre-tax Income | $1.44B | $2.14B | $2.79B | $3.20B | $4.18B | $5.71B | $6.01B | $6.80B | $6.93B | $8.73B |
| Income Tax | $266.4M | $443.7M | $203.1M | $253.3M | -$1.08B | $883.0M | $1.25B | $1.37B | $1.37B | $1.60B |
| Net Income | $1.17B | $1.69B | $2.59B | $2.95B | $5.26B | $4.82B | $4.76B | $5.43B | $5.56B | $7.13B |
| EPS | $2.35 | $3.43 | $5.28 | $6.07 | $10.94 | $10.10 | $10.13 | $11.88 | $12.44 | $16.73 |
| EPS (Diluted) | $2.32 | $3.38 | $5.20 | $6.00 | $10.83 | $10.02 | $10.10 | $11.83 | $12.36 | $16.70 |
| Shares Outstanding (Diluted) | $504.3M | $501.1M | $497.8M | $491.6M | $485.0M | $481.0M | $471.0M | $459.0M | $450.0M | $427.0M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $6.19B | $6.40B | $6.62B | $6.76B |
| Gross Profit | $5.54B | $5.73B | $5.90B | $5.96B |
| Operating Income | $2.26B | $2.42B | $2.24B | $2.35B |
| EBITDA | $2.51B | $2.66B | $2.50B | $2.57B |
| Net Income | $1.86B | $1.89B | $1.71B | $1.83B |
| EPS | $4.45 | $4.61 | $4.26 | $4.63 |
| EPS (Diluted) | $4.45 | $4.60 | $4.25 | $4.62 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $1.01B | $2.31B | $1.64B | $2.65B | $4.48B | $3.84B | $4.24B | $7.14B | $7.61B | $5.43B |
| Short-term Investments | $3.75B | $3.51B | $1.59B | $1.53B | $1.51B | $1.95B | $1.86B | $701.0M | $273.0M | $1.16B |
| Receivables | $833.0M | $1.22B | $1.32B | $1.53B | $1.40B | $1.88B | $2.06B | $2.22B | $2.07B | $2.34B |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $5.84B | $7.25B | $4.86B | $6.50B | $8.15B | $8.67B | $9.00B | $11.08B | $11.23B | $10.16B |
| Property, Plant & Equipment | $816.3M | $937.0M | $1.08B | $1.29B | $2.00B | $2.12B | $2.31B | $2.39B | $2.22B | $2.19B |
| Goodwill | $5.41B | $5.82B | $10.58B | $10.69B | $10.74B | $12.67B | $12.79B | $12.80B | $12.79B | $12.86B |
| Intangible Assets | $414.4M | $385.7M | $2.07B | $1.72B | $1.36B | $1.82B | $1.45B | $1.09B | $782.0M | $495.0M |
| Total Assets | $12.70B | $14.54B | $18.77B | $20.76B | $24.28B | $27.24B | $27.16B | $29.78B | $30.23B | $29.50B |
| Accounts Payable | $88.0M | $113.5M | $186.3M | $209.0M | $306.0M | $312.0M | $379.0M | $314.0M | $361.0M | $417.0M |
| Short-term Debt | 0 | 0 | 0 | $3.15B | 0 | 0 | $500.0M | 0 | $1.50B | 0 |
| Total Current Liabilities | $2.81B | $3.53B | $4.30B | $8.19B | $5.51B | $6.93B | $8.13B | $8.25B | $10.52B | $10.20B |
| Long-term Debt | $1.89B | $1.88B | $4.12B | $989.0M | $4.12B | $4.12B | $3.63B | $3.63B | $4.13B | $6.21B |
| Total Liabilities | $5.27B | $6.08B | $9.41B | $10.23B | $11.02B | $12.44B | $13.11B | $13.26B | $16.12B | $17.87B |
| Retained Earnings | $8.11B | $9.57B | $11.82B | $14.83B | $19.61B | $23.91B | $28.32B | $33.35B | $38.47B | $45.35B |
| Total Equity | $7.42B | $8.46B | $9.36B | $10.53B | $13.26B | $14.80B | $14.05B | $16.52B | $14.11B | $11.62B |
| Total Debt | $1.89B | $1.88B | $4.12B | $4.14B | $4.71B | $4.67B | $4.63B | $4.08B | $6.06B | $6.65B |
| Net Debt | -$2.87B | -$3.94B | $895.8M | -$39.0M | -$1.28B | -$1.12B | -$1.46B | -$3.76B | -$1.83B | $53.0M |
| Working Capital | $3.03B | $3.72B | $555.9M | -$1.70B | $2.63B | $1.74B | $868.0M | $2.83B | $711.0M | -$37.0M |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $5.43B | $6.33B | $4.92B | $4.36B |
| Total Assets | $29.50B | $29.70B | $29.93B | $29.98B |
| Total Liabilities | $17.87B | $18.27B | $18.41B | $18.22B |
| Total Equity | $11.62B | $11.43B | $11.52B | $11.76B |
| Total Debt | $6.65B | $6.66B | $7.07B | $6.76B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $1.17B | $1.69B | $2.59B | $2.95B | $5.26B | $4.82B | $4.76B | $5.43B | $5.56B | $7.13B |
| Depreciation & Amortization | $331.5M | $326.0M | $346.5M | $624.7M | $757.0M | $788.0M | $856.0M | $872.0M | $894.0M | $818.0M |
| Stock-based Compensation | $349.9M | $451.5M | $603.5M | $787.7M | $909.0M | $1.07B | $1.44B | $1.72B | $1.88B | $1.94B |
| Change in Working Capital | $346.4M | $446.9M | $487.8M | $105.0M | $186.0M | $292.0M | $336.0M | -$355.0M | $144.0M | $108.0M |
| Operating Cash Flow | $2.20B | $2.91B | $4.03B | $4.42B | $5.73B | $7.22B | $7.84B | $7.30B | $8.06B | $10.03B |
| Capital Expenditure | -$203.8M | -$178.1M | -$266.6M | -$334.0M | -$419.0M | -$330.0M | -$442.0M | -$360.0M | -$232.0M | -$179.0M |
| Acquisitions | -$48.4M | -$459.6M | -$6.31B | -$100.7M | 0 | -$2.68B | -$126.0M | 0 | 0 | -$17.0M |
| Stock Repurchased | -$1.07B | -$1.10B | -$2.05B | -$2.75B | -$3.05B | -$3.95B | -$6.55B | -$4.40B | -$9.50B | -$11.28B |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $2.00B | $2.73B | $3.76B | $4.09B | $5.31B | $6.89B | $7.40B | $6.94B | $7.82B | $9.85B |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | $3.16B | $2.96B | $2.51B | $2.52B |
| Capital Expenditure | -$34.0M | -$37.0M | -$58.0M | -$85.0M |
| Free Cash Flow | $3.13B | $2.92B | $2.45B | $2.44B |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $489.0M | $509.0M | $534.0M | $539.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +24.7% | +23.7% | +23.7% | +15.2% | +22.7% | +11.5% | +10.2% | +10.8% | +10.5% | |
| Net Income Growth (YoY) | +44.9% | +52.9% | +13.9% | +78.2% | -8.3% | -1.4% | +14.1% | +2.4% | +28.2% | |
| EPS Growth (YoY) | +46.0% | +53.9% | +15.0% | +80.2% | -7.7% | +0.3% | +17.3% | +4.7% | +34.5% | |
| Shares Change (YoY) | -0.6% | -0.7% | -1.3% | -1.3% | -0.8% | -2.1% | -2.5% | -2.0% | -5.1% | |
| FCF Growth (YoY) | +37.0% | +37.6% | +8.6% | +29.9% | +29.9% | +7.3% | -6.1% | +12.7% | +25.9% | |
| Gross Margin | 86.0% | 86.2% | 86.8% | 85.0% | 86.6% | 88.2% | 87.7% | 87.9% | 89.0% | 89.3% |
| Operating Margin | 25.5% | 29.7% | 31.5% | 29.3% | 32.9% | 36.8% | 34.6% | 34.3% | 31.3% | 36.6% |
| EBITDA Margin | 31.4% | 34.8% | 35.8% | 36.7% | 39.2% | 42.3% | 40.1% | 40.1% | 37.0% | 41.3% |
| Net Margin | 20.0% | 23.2% | 28.7% | 26.4% | 40.9% | 30.5% | 27.0% | 28.0% | 25.9% | 30.0% |
| FCF Margin | 34.1% | 37.5% | 41.7% | 36.6% | 41.2% | 43.7% | 42.0% | 35.8% | 36.4% | 41.4% |
| Effective Tax Rate | 18.6% | 20.8% | 7.3% | 7.9% | -26.0% | 15.5% | 20.8% | 20.2% | 19.8% | 18.4% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $3.96 | $5.46 | $7.56 | $8.31 | $10.94 | $14.33 | $15.70 | $15.12 | $17.39 | $23.07 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $498.3M | $493.6M | $490.6M | $486.3M | $481.0M | $477.0M | $470.0M | $457.0M | $447.1M | $426.0M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 62.88% |
| Return on Invested Capital | 36.79% |
| Return on Assets | 24.30% |
| Gross Margin | 89.10% |
| Operating Margin | 35.70% |
| Net Margin | 28.05% |
Financial Health
| Debt / Equity | 0.57 |
| Current Ratio | 0.77 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 8.51 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 42.44 | 52.34 | 47.52 | 50.99 | 43.60 | 61.04 | 33.71 | 51.55 | 41.47 | 19.14 |
| P/B | 6.69 | 10.47 | 13.15 | 14.29 | 17.30 | 19.87 | 11.42 | 16.95 | 16.35 | 11.73 |
| P/S | 8.49 | 12.14 | 13.63 | 13.47 | 17.83 | 18.63 | 9.12 | 14.42 | 10.73 | 5.74 |
| Gross Margin | 86.0% | 86.2% | 86.8% | 85.0% | 86.6% | 88.2% | 87.7% | 87.9% | 89.0% | 89.3% |
| Operating Margin | 25.5% | 29.7% | 31.5% | 29.3% | 32.9% | 36.8% | 34.6% | 34.3% | 31.3% | 36.6% |
| Net Margin | 20.0% | 23.2% | 28.7% | 26.4% | 40.9% | 30.5% | 27.0% | 28.0% | 25.9% | 30.0% |
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Explore sector: Technology · Software - Application
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