Added to YB: 2026-06-18
Pitch date: 2026-06-15
ADBE [neutral]
Adobe Inc.
+0.96%
current return
Author Info
Summit Stocks shares weekly in-depth articles on the best stocks and insights into their portfolio. Sign up for the newsletter.
Company Info
Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content.
Market Cap
$82.4B
Pitch Price
$205.38
Price Target
N/A
Dividend
N/A
EV/EBITDA
8.55
P/E
11.86
EV/Sales
3.33
Sector
Software
Category
value
Adobe ($ADBE): The Market Is Missing The Bigger Picture
ADBE (holding update): Q2'26 rev $6.62B (+13% YoY), beat guide; FY26 guide raised to $26.5-26.6B on SEMrush ($480M ARR). AI-first ARR >$500M (+3x YoY), Firefly ~$375M+. MAUs >850M; freemium pivot sacrifices ST ARR for LT growth. Distribution moat intact, enterprise +20%. Stock fell $250→$200, now 8x P/FCF (10x SBC-adj). Reverse DCF: FCF can decline 1.5%/yr & still earn 10%. Diluted shares -6.3% YoY via buybacks; $27B left.
Read full article (6 min)