AdobeMEX:ADBE +3.98%89 FCF Margin % is 31.84% as of May. 2026, which is 19% below its 10-year median of 39.35. GuruFocus rates MEX:ADBE with a GF Score™ of 89/100 and a GF Value™ of MXN10,464.42 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,811 Software companies, Adobe ranks better than 96.94% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Adobe's Free Cash Flow for the
three
months ended in May. 2026 was MXN36,556 Mil. Adobe's Revenue for the
three
months ended in May. 2026 was MXN114,821 Mil. Therefore, Adobe's FCF Margin % for the quarter that ended in May. 2026 was 31.84%.
The historical rank and industry rank for Adobe's FCF Margin % or its related term are showing as below:
MEX:ADBE'
s FCF Margin % Range Over the Past 10 Years
Min: 34.09 Med: 39.35 Max: 43.6
Current: 40.84
During the past 13 years, the highest FCF Margin % of Adobe was 43.60%. The lowest was 34.09%. And the median was 39.35%.
MEX:ADBE's FCF Margin % is ranked better than 96.94% of 2811
companies
in the Software industry
Industry Median: 2.4
vs MEX:ADBE: 40.84
Adobe FCF Margin % Related Terms
Adobe FCF Margin % Historical Data
* Premium members only.
The historical data trend for Adobe's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ADBE vs CDNS, INTU, ADP: FCF Margin % Comparison
For the Software - Application subindustry, Adobe's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Adobe FCF Margin % vs Software Industry
For the Software industry and Technology sector, Adobe's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Adobe's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Adobe (MEX:ADBE) has a FCF Margin % of 31.84% as of May. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Adobe and its competitors. This is 19% below median its historical median of 39.35. Over the past decade, Adobe's FCF Margin % has ranged from 34.09 to 43.60. According to the industry distribution chart, Adobe ranks #86 out of 2811 companies in the Software industry, placing it in the top 3.1%.
Is Adobe's FCF Margin % too high?
Adobe's current FCF Margin % of 31.84% is 19% below median its 10-year median of 39.35. Over the past 10 years, this metric has ranged from a low of 34.09 to a high of 43.60. The Software industry median FCF Margin % is 2.40. Adobe's value of 31.84% is 1226.7% above this industry median. Based on the distribution chart, Adobe ranks #86 out of 2811 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Adobe has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Adobe's FCF Margin % compare to CDNS and INTU?
According to the Software industry distribution chart, Adobe ranks #86 out of 2811 companies for FCF Margin %. This places Adobe in the top 3% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.40. Adobe's value of 31.84% is 1226.7% above this benchmark. Historically, Adobe's own FCF Margin % has ranged from 34.09 to 43.60 over the past decade. While the company's 10-year median is 39.35 vs. the industry median of 2.40, Adobe has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.40, based on 2,811 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Adobe's current FCF Margin % of 31.84% is 1226.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Adobe and its competitors. For the Software industry, the median FCF Margin % is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adobe's current FCF Margin % is 31.84%, which is 19% below median its own 10-year median of 39.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adobe stock overvalued right now?
Based on GuruFocus' analysis, Adobe (MEX:ADBE) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN10,464.42, compared to a current price of MXN3,467.59 — trading 66.9% below its estimated fair value. The current FCF Margin % is 31.84%, which is 19% below median its 10-year median of 39.35 and 1226.7% above the Software industry median of 2.40. Adobe's overall GF Score™ is 89/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Adobe (MEX:ADBE), the current FCF Margin % is 31.84% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Adobe (MEX:ADBE) Overvalued in 2026?
Based on GuruFocus' analysis, Adobe stock appears to be undervalued.
The current stock price of MXN3,467.59 is trading 66.9% below its estimated GF Value™ of MXN10,464.42.
GuruFocus considers Adobe to be Significantly Undervalued.
Key valuation signals for MEX:ADBE:
FCF Margin %: 31.84% (19% below median its 10-year median of 39.35)
GF Value™: MXN10,464.42 vs. price of MXN3,467.59 (66.9% below fair value)
Industry Position: 1226.7% above the Software median (#86 of 2811)
No single metric tells the full story. See the MEX:ADBE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing, and engaging with compelling content multiple operating systems, devices, and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
89GF Score
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