A Trefis analysis suggests Adobe (ADBE) stock is a compelling buy. The report highlights that the company’s Price-to-Sales (P/S) ratio is 40% lower than it was one year ago.
Trefis points to Adobe’s strong financial health. The company recorded cash flows exceeding $10 billion in fiscal year 2025. This performance was driven by high demand for its AI-powered products.
Adobe’s Total Annualized Recurring Revenue (ARR) grew 11.5% year-over-year, reaching $25.20 billion. This growth stems from increased customer adoption of AI features and updated pricing for Creative Cloud offerings.
Management targets aggressive growth for fiscal year 2026. Adobe aims for over 10% ARR growth and a 45% non-GAAP operating margin.