What changed
$ADBE — BUY 📊 | 6 MONTHS THESIS
🎯 FQ2 FY2026 (ends May) | reported Jun 11 | Rev $6.6B | EPS $5.96 vs $5.81 🟢 | Margin 33.8%
💡 Consensus expects stagnant revenue and gradual margin erosion, pricing ADBE at ~9x forward adjusted P/E and 8x EV/EBITDA—multiples typical for declining hardware businesses, not a subscription software leader with 30%+ net margins and aggressive share buybacks.
📉 Reward/risk: 3.48:1
🏢 Business Quality: 8/10/10 - Adobe holds a dominant moat in creative and document software, has high switching costs, best-in-class gross margins (90%), and a subscription model ensuring stable cash flows, but growth has stalled and faces AI-driven competitive risks.
📊 Valuation: cheap - TTM adjusted P/E ~9.5x, GAAP P/E ~12.7x, EV/EBITDA ~8x (estimated), FCF yield 12.4%; all are near multi-year lows and far below SaaS peers...
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/ADBE0611