Adobe's stock is temptingly cheap. Should investors bite?
Adobe's stock may be cheap, but that doesn't necessarily make it an attractive buy for bargain hunters, according to Bank of America.
Market Watch7/7/2026Negative
ADBE
Adobe Systems IncorporatedNASDAQTECHNOLOGYSOFTWARE - APPLICATION
Key Statistics
Market Cap
$87.82B
P/E Ratio
12.68
EPS
$17.43
Beta
1.43
52W High
$376.16
52W Low
$190.12
50-Day MA
$233.33
200-Day MA
$286.57
Dividend Yield
—
Profit Margin
28.70%
Forward P/E
9.01
PEG Ratio
0.60
About Adobe Systems Incorporated
Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.
Fundamentals
| Revenue (TTM) | $25.20B |
| Gross Profit (TTM) | $22.53B |
| EBITDA | $9.73B |
| Operating Margin | 35.30% |
| Return on Equity | 62.90% |
| Return on Assets | 19.90% |
| Revenue/Share (TTM) | $60.98 |
| Book Value | $28.87 |
| Price-to-Book | 7.58 |
| Price-to-Sales (TTM) | 3.48 |
| EV/Revenue | 3.523 |
| EV/EBITDA | 8.76 |
| Quarterly Earnings Growth (YoY) | 7.90% |
| Quarterly Revenue Growth (YoY) | 12.70% |
| Shares Outstanding | $397.50M |
| Float | $396.24M |
| % Insiders | 0.23% |
| % Institutions | 88.03% |
Historical Volatility
HV 10-Day
35.05%
HV 20-Day
49.87%
HV 30-Day
52.43%
HV 60-Day
48.01%
HV Rank
98.0%
Volatility is currently contracting
Analyst Ratings
Consensus ($272.48 target)
2
Strong Buy9
Buy25
Hold3
SellLatest News
Adobe reinstated at Underperform by Bank of America as AI pressures growth outlook
Adobe Inc (NASDAQ:ADBE) was reinstated with an 'Underperform' rating and a $190 price objective by Bank of America, whose analysts wrote that generative artificial intelligence is lowering barriers to content creation and increasing competitive pressure on the company's core creative software business. Bank of America's price target implies downside from current levels of $225.
Proactive Investors7/7/2026Negative
BofA is bearish on Adobe: the stock is still rising today
Adobe Inc. (ADBE) shares rose about 4.6% on Tuesday even after Bank of America reinstated coverage of the software company with an Underperform rating. The brokerage argued that generative artificial intelligence is weakening Adobe's competitive position despite the stock trading near the lower end of its historical valuation range.
Invezz7/7/2026Negative
Here's Why Adobe Systems (ADBE) is a Strong Growth Stock
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Zacks Investment Research7/6/2026Positive
Veteran Tech Analyst: The Market Has Wrongly Left Software for Dead in the AI Rotation
Richard Windsor, founder of Radio Free Mobile, pushed back against the panic gripping AI stocks in a recent episode of Bloomberg Horizons Middle East & Africa.
24/7 Wall Street7/3/2026Negative
Why Adobe Systems (ADBE) is a Top Value Stock for the Long-Term
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Zacks Investment Research7/3/2026Positive
Adobe: I Can Stay Rational Longer Than The Markets Can Stay Irrational
Adobe remains fundamentally strong, with 12.68% YoY revenue growth and robust ARR momentum despite a 24% share price decline. Firefly ARR reached $300 million in Q2, growing 50% QoQ, with projections to exit 2027 at $1.6–1.9 billion. AI inference costs and freemium strategies are near-term margin headwinds, but user acquisition and future upselling position ADBE for durable growth.
Seeking Alpha7/2/2026Negative
This Adobe analyst is going against the grain by telling investors to buy the stock
Adobe's stock is rallying after a contrarian upgrade at HSBC.
Market Watch7/2/2026Positive
Adobe Bets on Topaz Labs to Expand Firefly AI Ecosystem: What's Ahead?
ADBE's Topaz Labs deal adds AI enhancement tools to Firefly, advancing its creator platform push as AI demand accelerates.
Zacks Investment Research7/2/2026Positive
Adobe vs ServiceNow: The Better Buy Amid Rising AI Competition
ServiceNow (NYSE:NOW | NOW Price Prediction) and Adobe (NASDAQ:ADBE) have both posted fresh results, with sharply different profiles.
24/7 Wall Street7/2/2026Neutral
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Data last updated: 7/9/2026