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Adobe's market capitalization is over $300 billion, making it one of the largest SaaS companies in the world.
This massive valuation is a testament to Adobe's successful transition to a subscription-based model, which now accounts for over 90% of its revenue.
Adobe's shift to SaaS has been a key driver of its growth, with the company's revenue increasing by over 20% year-over-year.
This growth is fueled by Adobe's suite of creative and marketing cloud products, which are used by millions of customers worldwide.
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Financial Analysis
Adobe's revenue in 2024 was $21.51 billion, an increase of 10.80% from the previous year. This growth is a testament to the company's strong financial performance.
In the current quarter ending 03/31/25, Adobe's revenue is estimated to be $23,506 USD, with an average estimate from 32 analysts. This represents a significant increase from the previous year's revenue of $21,525 USD.
Adobe's financial performance is also reflected in its stock price, which has shown a 52-week high of $638.25 and a 52-week low of $403.75. The current share price is $438.60, with a beta of 1.31.
Here's a summary of Adobe's financial performance:
Adobe's financial performance is expected to continue growing, with estimated revenue of $33,029 USD in 2029.
Financial Performance
Adobe's revenue in 2024 was $21.51 billion, a 10.80% increase from the previous year.
This significant growth in revenue is a testament to the company's strong financial performance.
Adobe's earnings were $5.56 billion in 2024, a 2.43% increase from the previous year.
This increase in earnings shows that Adobe is not only generating more revenue but also improving its profitability.
Estimates in USD
Estimates in USD are a crucial aspect of financial analysis, helping investors make informed decisions about their investments. According to Adobe's estimates, the revenue is expected to reach $33,029 in 2029.
Adobe's revenue is projected to grow steadily, reaching $23,506 in 2025 and increasing by 10% in 2026 to $25,896. By 2027, the revenue is expected to reach $28,251, and by 2028, it will be $30,370.
The average estimate of 34 analysts for the current year ending 11/30/25 is $20.413 USD, while the average estimate of 33 analysts for the next year ending 11/30/26 is $23.053 USD. This indicates a steady growth in revenue over the next two years.
The average estimate of 32 analysts for the current year ending 11/30/25 is $23,506 USD, while the average estimate of 31 analysts for the next year ending 11/30/26 is $25,896 USD.
Dividend Calendar
The dividend calendar is a crucial tool for investors to track dividend payments from their stocks. Adobe Inc. has a long history of paying dividends, but it's interesting to note that they didn't pay any dividends from 2014 to 2023.
The first recorded dividend payment from Adobe Inc. was in 2005, when they paid $0.01 per share. This may seem like a small amount, but it's a start. In 2006, they increased the dividend to $0.00, which is quite a drop.
In 2004, Adobe Inc. paid a dividend of $0.03 per share, which had a yield of 0.10. This means that for every dollar invested, the investor would receive $0.10 in dividend payments. The yield has fluctuated over the years, but it's always been relatively low.
Here's a breakdown of the dividend payments and yields from 2005 to 2009:
It's worth noting that Adobe Inc. has not paid any dividends since 2009. This could be a sign of the company's financial struggles or a deliberate decision to reinvest profits back into the business.
Investor Insights
Analysts are optimistic about Adobe stock, with an average rating of "Buy" from 26 analysts.
The 12-month stock price forecast is a significant increase of 30.28% from the latest price, reaching $577.92.
Adobe's strong financial performance is driving this optimism, with $578M added in Q4 Digital Media ARR and $2B for FY2024.
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Analyst Opinions
Analyst Opinions play a significant role in shaping investor decisions. Analysts have given a thumbs up to ADBE stock, with 26 experts predicting a bright future.
The average rating from these analysts is a strong "Buy". This consensus among experts is a clear indication of their confidence in the stock's potential.
A 12-month stock price forecast of $577.92 indicates a significant increase of 30.28% from the latest price. This projected growth is a major draw for investors looking to capitalize on ADBE's potential.
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Shareholder Returns
As an investor, it's essential to understand how Adobe's shareholder returns have been performing. Adobe's stock price has been quite volatile, with a 30.2% decline over the past year.
The company's returns have underperformed the US Software industry, which returned 13.3% over the same period. This indicates that Adobe's stock has been struggling to keep pace with its industry peers.
However, it's worth noting that Adobe's revenue growth has been strong, with a 11% year-over-year increase in FY2024 revenue. This growth has been driven by the company's subscription-based model, which has added $578M in Q4 Digital Media ARR and $2B for FY2024.
Here's a comparison of Adobe's returns with its industry and market peers:
As you can see, Adobe's returns have been quite different from its industry and market peers. While the US Software industry returned 13.3% over the past year, Adobe's stock price declined by 30.2%. This highlights the importance of doing your own research and understanding the company's specific performance before making any investment decisions.
Insider Activity
Insider buying activity is a strong indicator of a company's potential for growth and success. This is evident in the recent insider activity of Adobe's executives and employees.
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Narayen Shantanu, Adobe's CEO, made two significant buys on January 14, 2025, purchasing 2,200 shares and 1,265 shares, respectively. These transactions demonstrate his confidence in the company's future prospects.
Insider selling activity can also be a sign of a company's health, but it's essential to consider the context. On January 14, 2025, multiple Adobe executives and employees sold shares, including NARAYEN SHANTANU, who sold 627 and 1,102 shares.
The number of shares sold by each individual can provide insight into their level of commitment to the company. For example, Chakravarthy Anil sold 216 and 395 shares, while Belsky Scott sold 230 and 416 shares.
Here's a breakdown of the insider buying activity on January 14, 2025:
These transactions suggest that these insiders are confident in Adobe's future prospects and are willing to invest their own money in the company.
Frequently Asked Questions
Will Adobe bounce back?
Yes, Adobe's stock is poised for a strong rebound due to its AI advancements and double-digit growth, making it a promising investment opportunity. With a compelling valuation, Adobe's long-term upside potential is looking bright.
What is the dividend yield of Adobe?
As of December, Adobe's dividend yield is 0.00%. Check the current yield for the most up-to-date information.
Is Adobe publicly listed?
Yes, Adobe is publicly listed on the Nasdaq stock exchange. You can find our stock symbol under ADBE.
Who owns the most Adobe stock?
Vanguard is the largest shareholder of Adobe (ADBE) stock. Institutional investors hold a significant portion of Adobe's shares, with Vanguard owning the most.
What was Adobe's highest share price?
Adobe's highest share price was $688.37 on November 19, 2021. This represents the company's all-time high stock closing price.
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