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 low single-digit growth and margin pressure from AI competition, pricing in no robust AI monetization. Variant view: Adobe's Firefly and AI-integrated tools are driving new customer adoption and ARR growth that offsets any legacy dilution. The market underappreciates the durability of Adobe's creative moat.
📉 Reward/risk: 4.0:1
🏢 Business Quality: 8/10 - Strong moat, high margins, sticky enterprise creative workflows, but facing potential disruption from generative AI tools; excellent capital returns via buybacks.
📊 Valuation: cheap — Trailing non-GAAP P/E ~8.5x, EV/Revenue ~3.2x, FCF yield ~7%. Historical 5-year avg P/E 25-35x; peer group (CRM, MSFT) trades 20x+ forward.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/ADBE0612