How Does Adobe Stock Compare With Peers?
Adobe’s stock has significantly underperformed over the past year, but how does it truly stack up against peers navigating the evolving software and cloud landscape? A closer look as of 2/24/2026 reveals strong profitability, with the highest free cash flow margin and second-best operating margin, alongside an attractive valuation reflected in its lowest PE ratio. However, its moderate revenue growth lags behind top performers like Microsoft and Google, suggesting limited upside without stronger catalysts.
- ADBE’s 36.6% operating margin reflects its efficient SaaS model, yet trails MSFT’s 46.7% due to MSFT’s cloud dominance and AI integration.
- ADBE’s 10.5% revenue growth from digital media & AI tools outpaces CRM, but lags MSFT, ORCL, GOOGL, ADSK, boosted by cloud/AI infrastructure demand.
- ADBE’s stock down 42.6% in 1 year, underperforming peers, with a 14.9 PE, signals market re-evaluating growth/AI impacts vs. strong cloud leaders.
Here’s how Adobe stacks up across size, valuation, and profitability versus key peers.
| ADBE | MSFT | CRM | ORCL | GOOGL | ADSK | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 106.4 | 2,890.7 | 175.8 | 418.5 | 3,753.8 | 47.1 |
| Revenue ($ Bil) | 23.8 | 305.5 | 40.3 | 61.0 | 402.8 | 6.9 |
| PE Ratio | 14.9 | 24.2 | 24.3 | 27.1 | 28.4 | 42.4 |
| LTM Revenue Growth | 10.5% | 16.7% | 8.4% | 11.1% | 15.1% | 15.6% |
| LTM Operating Margin | 36.6% | 46.7% | 22.0% | 31.9% | 32.0% | 23.9% |
| LTM FCF Margin | 41.4% | 25.3% | 32.0% | -21.6% | 18.2% | 30.2% |
| 12M Market Return | -42.6% | -3.0% | -39.5% | -13.1% | 74.1% | -22.6% |
For more details on Adobe, read Buy or Sell ADBE Stock. Below we compare ADBE’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
| ADBE | 10.5% | 10.5% | 10.8% | 10.2% |
| MSFT | 16.7% | 14.9% | 15.7% | 6.9% |
| CRM | 8.4% | 8.7% | 11.2% | 18.3% |
| ORCL | 11.1% | 8.4% | 6.0% | 17.7% |
| GOOGL | 15.1% | 15.1% | 13.9% | 8.7% |
| ADSK | 15.6% | 11.5% | 9.8% | 14.1% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
| ADBE | 36.6% | 36.6% | 36.0% | 34.3% |
| MSFT | 46.7% | 45.6% | 44.6% | 41.8% |
| CRM | 22.0% | 20.2% | 17.2% | 5.9% |
| ORCL | 31.9% | 31.5% | 30.3% | 27.6% |
| GOOGL | 32.0% | 32.0% | 32.1% | 27.4% |
| ADSK | 23.9% | 22.3% | 20.5% | 19.8% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
| ADBE | 14.9 | 20.9 | 35.8 | 50.2 |
| MSFT | 24.2 | 35.3 | 35.5 | 38.7 |
| CRM | 24.3 | 41.1 | 78.7 | 1255.0 |
| ORCL | 27.1 | 43.7 | 43.7 | 33.4 |
| GOOGL | 28.4 | 28.7 | 23.3 | 23.9 |
| ADSK | 42.4 | 57.2 | 69.8 | 63.9 |
Still not sure about ADBE stock? Consider portfolio approach.
The Right Way To Invest Is Through Portfolios
Individual stocks are unpredictable. A smart portfolio helps you invest, limits downside shocks, and provides upside exposure.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.