Adobe (NASDAQ: ADBE) trades at $264.02 as of this writing, about 29% below its 52-week high of $370.86. After that slide, the stock costs about 15 times the earnings it reported over the past year. It costs about 11 times the non-GAAP (adjusted) earnings management expects for the current fiscal year, and roughly 10 times what analysts project for the year after that.
Multiples like these are what the market typically assigns to businesses whose profits have stopped growing, or are about to. Adobe grew revenue 13% last quarter, to a record. In other words, the price and the results disagree.
This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.
Continue » Is the creative software giant a business in decline, or one of the cheaper growth stocks in the market? Adobe's fiscal second quarter of 2026 (the period ended May 29) was the best in the company's history by revenue -- $6.62 billion, up 13% year over year, or 11% in constant currency. Growth was 11% in the year-ago quarter and 12% in this year's fiscal first quarter.
Measured in constant currency, all three quarters grew 11% -- steady, not accelerating. The growth was broad, too. Subscription revenue from the company's business professionals and consumers group (the one built around Acrobat and other everyday productivity tools) rose 16% year over year, while subscription revenue from the larger creative and marketing professionals group grew 13%.
Adjusted earnings per share came in at $5.96, up 18% year over year, alongside $4.25 per share on a GAAP basis. The recurring base kept building as well. Adobe exited fiscal Q2 with $27.1 billion in annualized recurring revenue (including about $480 million from newly acquired Semrush), and its remaining performance obligations (contracted revenue not yet recognized) stood at $22.3 billion.
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