Adobe (XSWX:ADBE) Operating Income: CHF7,190 Mil (TTM As of May. 2026)


XSWX:ADBE Adobe Inc XSWX:ADBE
84 GF Score
Price CHF183.44
GF Value CHF493.89
Valuation Significantly Undervalued
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What is Adobe Operating Income?

Adobe XSWX:ADBE +4.77% 84 Operating Income is CHF7,190 Mil as of May. 2026. GuruFocus rates XSWX:ADBE with a GF Score™ of 84/100 and a GF Value™ of CHF493.89 (Significantly Undervalued).

Adobe's Operating Income for the three months ended in May. 2026 was CHF1,753 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was CHF7,190 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Adobe's Operating Income for the three months ended in May. 2026 was CHF1,753 Mil. Adobe's Revenue for the three months ended in May. 2026 was CHF5,185 Mil. Therefore, Adobe's Operating Margin % for the quarter that ended in May. 2026 was 33.82%.

Good Sign:

Adobe Inc operating margin is expanding. Margin expansion is usually a good sign.

Adobe's 5-Year average Growth Rate for Operating Margin % was 1.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Adobe's annualized ROC % for the quarter that ended in May. 2026 was 22.47%. Adobe's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 428.76%.

Adobe  (XSWX:ADBE) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Adobe's annualized ROC % for the quarter that ended in May. 2026 is calculated as:

ROC % (Q: May. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2026 ) + Invested Capital (Q: May. 2026 ))/ count )
=7012.996 * ( 1 - 23.5% )/( (22690.026 + 25065.666)/ 2 )
=5364.94194/23877.846
=22.47 %

where

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22958.222 - 1044.188 - ( 5325.281 - max(0, 8803.331 - 8027.339+5325.281))
=22690.026

Invested Capital(Q: May. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=23449.512 - 741.88 - ( 4407.408 - max(0, 9461.905 - 7103.871+4407.408))
=25065.666

Note: The Operating Income data used here is four times the quarterly (May. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Adobe's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: May. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Feb. 2026  Q: May. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=7216.68/( ( (1667.145 + max(-5380.157, 0)) + (1699.195 + max(-5250.346, 0)) )/ 2 )
=7216.68/( ( 1667.145 + 1699.195 )/ 2 )
=7216.68/1683.17
=428.76 %

where Working Capital is:

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1616.907 + 0 + 1085.151) - (1044.188 + 5622.848 + 1415.179)
=-5380.157

Working Capital(Q: May. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1561.316 + 0 + 1135.147) - (741.88 + 5602.877 + 1602.052)
=-5250.346

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (May. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Adobe's Operating Margin % for the quarter that ended in May. 2026 is calculated as:

Operating Margin %=Operating Income (Q: May. 2026 )/Revenue (Q: May. 2026 )
=1753.249/5184.541
=33.82 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Adobe Operating Income Related Terms

Adobe Operating Income Historical Data

* Premium members only.

The historical data trend for Adobe's Operating Income 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.

Adobe Operating Income Chart

Adobe Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5,345.38 5,890.67 5,919.83 6,819.05 6,997.01

Adobe Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,750.26 1,751.00 1,817.17 1,868.87 1,753.25
XSWX:ADBE
84GF Score
Adobe Inc XSWX:ADBE
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Adobe Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF7,190 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of CHF7,190 Mil mean?
Adobe (XSWX:ADBE) has a Operating Income of CHF7,190 Mil as of May. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Adobe and its competitors.
Is Adobe's Operating Income too high?
Adobe's current Operating Income is CHF7,190 Mil. Overall, Adobe has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Adobe's Operating Income compare to DDOG and SNOW?
Adobe's Operating Income of CHF7,190 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Adobe and its competitors. Adobe's current Operating Income is CHF7,190 Mil. 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 (XSWX:ADBE) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF493.89, compared to a current price of CHF183.44 — trading 62.9% below its estimated fair value. The current Operating Income is CHF7,190 Mil. Adobe's overall GF Score™ is 84/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Adobe (XSWX:ADBE), the current Operating Income is CHF7,190 Mil 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 (XSWX:ADBE) Overvalued in 2026?

Based on GuruFocus' analysis, Adobe stock appears to be undervalued. The current stock price of CHF183.44 is trading 62.9% below its estimated GF Value™ of CHF493.89. GuruFocus considers Adobe to be Significantly Undervalued.

Key valuation signals for XSWX:ADBE:

  • Operating Income: CHF7,190 Mil
  • GF Value™: CHF493.89 vs. price of CHF183.44 (62.9% below fair value)
  • GF Score™: 84/100

No single metric tells the full story. See the XSWX:ADBE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Adobe Business Description

Address 345 Park Avenue, San Jose, CA, USA, 95110-2704
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).
84GF Score

Get the complete analysis for XSWX:ADBE

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF183.44
Price
CHF493.89
GF Value