Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

Calculation

Adobe Inc., net profit margin, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02), 10-K (reporting date: 2015-11-27), 10-K (reporting date: 2014-11-28), 10-K (reporting date: 2013-11-29), 10-K (reporting date: 2012-11-30), 10-K (reporting date: 2011-12-02), 10-K (reporting date: 2010-12-03), 10-K (reporting date: 2009-11-27), 10-K (reporting date: 2008-11-28), 10-K (reporting date: 2007-11-30), 10-K (reporting date: 2006-12-01), 10-K (reporting date: 2005-12-02).

1 US$ in millions


The net profit margin exhibited considerable fluctuation over the period from 2005 to 2025. Initial values were relatively high, followed by a period of decline, then a resurgence, and finally, stabilization with a slight upward trend in recent years.

Initial Period (2005-2006)
A significant decrease in net profit margin is observed, moving from 30.66% in 2005 to 19.64% in 2006. This suggests a potential increase in costs or a decrease in pricing power during this timeframe, despite revenue growth.
Volatility and Recovery (2007-2009)
The net profit margin demonstrated volatility between 2007 and 2009, peaking at 24.35% in 2008 before experiencing a substantial decline to 13.12% in 2009. This period likely reflects the impact of broader economic conditions and potentially company-specific challenges.
Gradual Improvement (2010-2014)
From 2010 through 2014, the net profit margin showed a gradual improvement, rising from 20.39% to 6.47%. However, the margin remained relatively low in 2013 and 2014, indicating continued pressure on profitability. The 2013 and 2014 values represent the lowest points in the observed period.
Strong Growth Phase (2015-2020)
A period of strong growth in net profit margin is evident from 2015 to 2020. The margin increased significantly, reaching 40.88% in 2020. This substantial improvement suggests successful cost management, increased operational efficiency, or a shift towards higher-margin products or services. Revenue also experienced significant growth during this period.
Recent Stabilization (2021-2025)
Following the peak in 2020, the net profit margin stabilized, fluctuating between 25.85% and 30.55% from 2021 to 2025. While not exhibiting the dramatic growth of the previous five years, the margin remained at a healthy level, indicating sustained profitability. A slight upward trend is observable in the most recent years, reaching 30.00% in 2025.

Overall, the net profit margin demonstrates a cyclical pattern with periods of decline, recovery, and strong growth. The recent stabilization at a relatively high level suggests a mature and profitable business model.


Comparison to Competitors

Adobe Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02), 10-K (reporting date: 2015-11-27), 10-K (reporting date: 2014-11-28), 10-K (reporting date: 2013-11-29), 10-K (reporting date: 2012-11-30), 10-K (reporting date: 2011-12-02), 10-K (reporting date: 2010-12-03), 10-K (reporting date: 2009-11-27), 10-K (reporting date: 2008-11-28), 10-K (reporting date: 2007-11-30), 10-K (reporting date: 2006-12-01), 10-K (reporting date: 2005-12-02).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)