Adobe: Strong Q4 Results, Bargain Valuation -- It's A Buy
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Jonathan WeberInvesting GroupFollow5ShareSavePlay(10min)CommentsSummaryAdobe Inc. is growing nicely while trading at a very inexpensive valuation. delivers robust growth and beats Q4 estimates, continuing a 12-quarter streak of outperformance.ADBE’s subscription revenue rose 11%, driving predictability and strong operating leverage, with margins and EPS outpacing revenue growth.Management guides for FY2026 revenue of ~$26B (+9.2%) and EPS growth of ~12%, with ARR expected to rise over 10%.Valuation at under 15x earnings appears undemanding given reliable 10% growth and AI risks seem overstated; I rate ADBE stock a Buy. Kenneth Cheung/iStock Unreleased via Getty Images Article Thesis Adobe Inc. (ADBE) is a quality company that offers compelling business growth at a very undemanding valuation. Its fiscal Q4 earnings release and guidance for the current fiscalThis article was written byJonathan Weber53.34K FollowersFollowJonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally. He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.Analyst’s Disclosure:I/we have a beneficial long position in the shares of ADBE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You