Adobe shares have fallen 55.1% since their December 6, 2024 high, yet free cash flow over the last four quarters reached $10.6 billion, or 10.8% of market value at the October 29 close, versus 4.2% for the median S&P 500 company. Subscription revenue rose 12.0% over twelve months, with an operating margin of 35.7% against 18.5% for the S&P 500. At August 28, 2026, Adobe held $5.64 billion in cash and short-term investments against $6.76 billion owed. Investors may worry that AI will reshape software, and shares fell 6.7% on September 4 after the company named Anil Chakravarthy as CEO starting December 1; annual recurring revenue reached $27.5 billion, up 11.2%. Adobe's free creative apps draw more than 100 million monthly users, and it finalized the $340 million acquisition of Topaz Labs in late September.
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