Adobe: Buy Post-Earnings

Louis Gerard 3.96K Followers Follow Summary Adobe delivered a double beat on revenue and EPS, with robust 12.9% Y/Y growth and raised FY26 guidance. Firefly ARR surged 40% sequentially, Creative freemium MAU crossed 100M, and total MAU exceeded 1B, supporting the growth thesis. Gross margin remains strong at 88.7% despite inference cost pressures, and ADBE repurchased $2.23B in stock this quarter. I maintain a Strong Buy rating as ADBE trades at a sub-10x non-GAAP P/E, offers best-in-class FCF yield, and consistent growth. JHVEPhoto/iStock Editorial via Getty Images Introduction Adobe ( ADBE ), a firm that I consider to be a great opportunity in the market and a holding of mine, just released its latest earnings and despite the strong headline numbers, the stock is This article was written by Louis Gerard 3.96K Followers Follow As a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basically, anything that has been unloved for unjustified reasons that could offer substantial returns. Energy Transfer is one of those companies that I came across when no one wanted to touch it and now I can't resolve myself to sell it. I will always focus more on long-term value investing but I can sometimes lose myself in possible deal arbitrage such as with Microsoft/ Activision Blizzard, Spirit Airlines/Jetblue (that one still hurts), and Nippon/U.S. Steel (perfect exit at $50.19). I tend to shun businesses that I can't understand either high-tech or certain consumer goods such as fashion (give me a Levi's jeans). I don't understand why anyone would invest in cryptocurrencies as well. Through Seeking Alpha, I aim to connect with like-minded investors, share insights, and build a collaborative community of individuals seeking superior returns and informed decision-making, currently on a quest to review every public company. 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.