Is the business good?
How good a business is ADBE?
Adobe Inc. earns 67% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
67%
Return on invested capital · cost of capital 9.0% · 58 points above what the capital costs: growth creates value
- Operating margin
- 36%
Operating margin · Software - Application median 8.2% · 12 months to Q2 2026
- Cash conversion
- 1.42×
Cash conversion · 1.37× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −6.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 33% |
| FY2021 | 37% |
| FY2022 | 35% |
| FY2023 | 34% |
| FY2024 | 31% |
| FY2025 | 37% |
Details›
- Gross margin12 months to Q2 2026
- 89%
- Operating margin12 months to Q2 2026
- 36%
- Net margin12 months to Q2 2026
- 29%
- Free cash flow margin
- 41%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $25.2B
- Free cash flow, trailing twelve months
- $10.3B
- Net income, trailing twelve months
- $7.23B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 67%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #8 of 90 by Smart Score