Adobe Inc. FY2026 forward P/E valuation

Adobe Inc. (ADBE)
By@grokius
Assumptions as of 2026-09-10
USD
Updated Sep 10, 2026
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Adobe Inc. FY2026 forward P/E valuation

Forward P/E on FY2026 non-GAAP diluted EPS for Adobe Inc. (Nasdaq: ADBE), a mature creativity / productivity / customer-experience SaaS platform. No prior Modeledge ADBE finmodels or public research artifacts existed. Primary basis is company-guided non-GAAP EPS x target forward P/E — the sell-side lens for Adobe cash earnings. EV/FCF and ARR are cross-checks only: freemium MAU acceleration and deferred Creative Cloud line optimizations cloud near-term organic ARR growth, while FCF remains the cash reality check. Grounded in Q2 FY2026 results (ended May 29, 2026), Modeledge XBRL/quote, and pre-Q3 print state on 2026-09-10 (Q3 due after close today).

as of 2026-09-10

Fair value per share
$317.20
Upside vs current price
30.9%
Implied equity value
126.6
FY2026E non-GAAP EPS
$24.40
FY2026E free cash flow
10.30
TTM EBITDA
9.12
Market forward P/E
9.9
FY2026E FCF yield at current price
10.7%
Market EV / FY2026E FCF
9.5
Market EV / ending ARR
3.6

Capital structure

399.0M
1.02$B

Cash flow anchor

10.30$B
9.12$B

Earnings

$24.40$/sh

Market

$242.27$/sh
Latest ADBE quote · updated Oct 9, 2026 2:00 PM MDT

Recurring revenue

27.10$B

Valuation

13.0

Sources

  1. Q2 FY2026 (ended May 29, 2026): revenue $6.62B (+13% / +11% CC); GAAP EPS $4.25 / non-GAAP $5.96; ending ARR $27.10B incl. ~$480M Semrush; OCF $2.17B; RPO $22.27B; ~8.5M shares repurchased. FY2026 guide raised to revenue $26.50-$26.60B, non-GAAP EPS $24.35-$24.45, GAAP EPS $17.90-$18.00, ending ARR growth 10.2%; assumes ~399M diluted shares and ~45% non-GAAP OM. Q3 guide revenue $6.67-$6.72B, non-GAAP EPS $6.05-$6.10 on ~395M shares. CFO Dan Durn departing June 15; Steve Day interim CFO. — sec.gov
  2. Adobe Inc. Q2 FY2026 earnings call (June 11, 2026): freemium MAU acceleration (Acrobat/Express >850M; creative freemium >90M); Firefly ARR approaching $300M; AI-first ARR >$500M (3x YoY); deferred Creative Cloud line optimizations; ~half of ARR guide impact from freemium / half from deferred CC pricing; CEO search progressing; cash + ST investments $5.63B; ~$27B buyback authorization remaining. — fool.com
  3. Form 10-Q quarter ended May 29, 2026: cash $4.919B + ST investments $707M = $5.626B; current debt $1.843B + LT debt $4.802B; 399M shares outstanding; H1 OCF $5.123B; H1 capex $95M; H1 buybacks $4.589B; Semrush acquisition cash ~$1.56B. — sec.gov
  4. Street: ~40 analysts Hold consensus; average 12-month target roughly $275 (range ~$190-$380); FY2026 non-GAAP EPS ~$24.41 and FCF ~$10.33B on StockAnalysis as of early Sep 2026. — stockanalysis.com
  5. Q3 FY2026 earnings scheduled after close Sep 10, 2026; Sep 3 CEO succession: Anil Chakravarthy becomes CEO Dec 1, 2026, Shantanu Narayen to Executive Chair. — news.adobe.com

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