Operating Profit Margin
since 2005
Calculation
Adobe Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Nov 29, 2024 | 31.35% | = | 100 | × | 6,741) | ÷ | 21,505) |
| Dec 1, 2023 | 34.26% | = | 100 | × | 6,650) | ÷ | 19,409) |
| Dec 2, 2022 | 34.64% | = | 100 | × | 6,098) | ÷ | 17,606) |
| Dec 3, 2021 | 36.76% | = | 100 | × | 5,802) | ÷ | 15,785) |
| Nov 27, 2020 | 32.93% | = | 100 | × | 4,237) | ÷ | 12,868) |
| Nov 29, 2019 | 29.25% | = | 100 | × | 3,268) | ÷ | 11,171) |
| Nov 30, 2018 | 31.45% | = | 100 | × | 2,840) | ÷ | 9,030) |
| Dec 1, 2017 | 29.69% | = | 100 | × | 2,168) | ÷ | 7,302) |
| Dec 2, 2016 | 25.51% | = | 100 | × | 1,494) | ÷ | 5,854) |
| Nov 27, 2015 | 18.83% | = | 100 | × | 903) | ÷ | 4,796) |
| Nov 28, 2014 | 9.95% | = | 100 | × | 413) | ÷ | 4,147) |
| Nov 29, 2013 | 10.42% | = | 100 | × | 423) | ÷ | 4,055) |
| Nov 30, 2012 | 26.80% | = | 100 | × | 1,180) | ÷ | 4,404) |
| Dec 2, 2011 | 26.07% | = | 100 | × | 1,099) | ÷ | 4,216) |
| Dec 3, 2010 | 26.13% | = | 100 | × | 993) | ÷ | 3,800) |
| Nov 27, 2009 | 23.44% | = | 100 | × | 691) | ÷ | 2,946) |
| Nov 28, 2008 | 28.72% | = | 100 | × | 1,028) | ÷ | 3,580) |
| Nov 30, 2007 | 27.16% | = | 100 | × | 858) | ÷ | 3,158) |
| Dec 1, 2006 | 21.41% | = | 100 | × | 551) | ÷ | 2,575) |
| Dec 2, 2005 | 37.05% | = | 100 | × | 728) | ÷ | 1,966) |
Based on: 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 data reveals several important trends in the financial performance over the reported periods. Revenue exhibits a consistent overall upward trajectory, increasing from approximately $1.97 billion in late 2005 to over $21.5 billion by late 2024. This growth indicates a strong expansion in the company's sales or service income over nearly two decades.
Operating income shows a more fluctuating pattern but generally follows an upward trend in alignment with revenue. It starts at $728 million in 2005, experiences some volatility through the intermediate years — notably a significant dip down to $413 million around 2013–2014 — before steadily climbing to $6.7 billion by 2024. This suggests that while the company has occasionally faced pressures on its operating profits, overall profitability has greatly improved over time.
The operating profit margin percentage, which measures operating income as a proportion of revenue, reflects variations in profitability efficiency more distinctly. Initially, the margin is relatively high at 37.05% in 2005 but then declines to a low of under 10.0% in 2013 and 2014, indicating reduced operational efficiency or increased costs relative to revenue during that period. Following this low, the margin recovers strongly and remains in the 25% to 37% range in subsequent years, reaching values above 34% in most recent periods before slightly easing down to just over 31% in 2024. This recovery suggests improved cost management or enhanced pricing power post-2014.
Overall, despite some volatility in operating income and margins during the middle of the timeline, the company demonstrates resilient revenue growth paired with improving operating profitability in recent years. The rebound and stabilization of the operating profit margin at relatively high levels is indicative of effective strategic or operational adjustments that have reinforced the company's earning capacity beyond merely increasing sales.
- Revenue Trends
- Consistent long-term growth from $1.97 billion (2005) to $21.5 billion (2024).
- Operating Income Trends
- Variable with dips around 2013–2014, then strong recovery to $6.7 billion by 2024.
- Operating Profit Margin Trends
- High margins early on, sharp decline below 10% in 2013–2014, followed by sustained recovery and margins stabilizing above 30% in recent years.
- Insights
- The company experienced mid-period challenges that compressed profitability despite growing revenue, but implemented effective measures to improve operational efficiency and profit generation in later years, resulting in robust financial performance.
Comparison to Competitors
Adobe Inc., operating profit margin, long-term trends, comparison to competitors
| Adobe Inc. | Accenture PLC | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 29, 2024 | 31.35% | 14.79% | 29.10% | -0.07% | 42.71% | 22.29% | 44.64% | 28.99% | 10.83% | 8.52% | 14.38% | 12.42% | 22.13% | 2.52% |
| Dec 1, 2023 | 34.26% | 13.74% | 30.59% | -8.48% | 42.47% | 21.86% | 41.77% | 26.21% | 5.39% | 5.62% | 3.29% | 8.49% | 21.72% | -3.57% |
| Dec 2, 2022 | 34.64% | 15.21% | 30.15% | -9.82% | 39.38% | 20.20% | 42.06% | 25.74% | -8.46% | -3.43% | 2.07% | 4.90% | 22.87% | -2.27% |
| Dec 3, 2021 | 36.76% | 15.08% | 26.07% | -10.58% | 38.40% | 25.95% | 41.59% | 37.58% | -26.66% | -7.15% | 2.14% | 4.36% | 17.48% | -5.76% |
| Nov 27, 2020 | 32.93% | 14.69% | 24.06% | -30.34% | 22.86% | 28.34% | 37.03% | 35.57% | -107.41% | -5.25% | 1.74% | 4.40% | 16.83% | -13.85% |
| Nov 29, 2019 | 29.25% | 14.59% | 21.05% | — | 21.86% | 27.33% | 34.14% | 34.26% | — | -1.87% | 4.03% | 1.22% | 15.48% | -16.42% |
| Nov 30, 2018 | 31.45% | 14.04% | 18.53% | — | 19.99% | 25.10% | 31.77% | 34.34% | — | -5.68% | 2.25% | -1.63% | 11.54% | -14.15% |
| Dec 1, 2017 | 29.69% | 12.60% | 16.67% | — | 19.01% | 26.95% | 24.82% | 33.69% | — | -10.21% | 0.77% | -5.25% | 12.76% | -24.00% |
| Dec 2, 2016 | 25.51% | 13.82% | 13.49% | — | 19.24% | 26.46% | 23.65% | 34.02% | — | -13.79% | 1.72% | -30.41% | 13.10% | -22.77% |
| Nov 27, 2015 | 18.83% | 13.48% | 16.77% | — | 16.39% | 17.60% | 19.41% | 36.29% | — | -14.39% | -2.71% | -16.55% | 11.88% | -27.38% |
| Nov 28, 2014 | 9.95% | 13.49% | 13.07% | — | 20.52% | 29.16% | 31.97% | 38.56% | — | -36.00% | -7.03% | -22.24% | 12.09% | -32.69% |
| Nov 29, 2013 | 10.42% | 14.27% | 12.94% | — | 21.74% | 29.56% | 34.38% | 39.49% | — | -4.70% | -3.63% | -15.61% | 12.56% | -43.07% |
| Nov 30, 2012 | 26.80% | 13.00% | 15.96% | — | 24.89% | 28.35% | 29.52% | 36.92% | — | 1.53% | -1.55% | -15.42% | 10.82% | — |
| Dec 2, 2011 | 26.07% | 12.69% | 10.47% | — | 20.55% | 26.15% | 38.83% | 33.78% | — | — | 5.88% | — | 13.86% | — |
| Dec 3, 2010 | 26.13% | 12.62% | -3.09% | — | 18.72% | 24.98% | 38.57% | 33.79% | — | — | 8.83% | — | 13.33% | — |
| Nov 27, 2009 | 23.44% | 11.41% | -14.50% | — | 18.51% | 21.43% | 34.85% | 35.79% | — | — | 5.92% | — | 15.31% | — |
| Nov 28, 2008 | 28.72% | 11.90% | -151.48% | — | 16.42% | 21.19% | 37.23% | 34.97% | — | — | 2.71% | — | 16.39% | — |
| Nov 30, 2007 | 27.16% | 11.62% | 19.68% | — | 18.06% | 23.85% | 36.23% | 33.20% | — | — | -0.72% | — | 9.74% | — |
| Dec 1, 2006 | 21.41% | 10.10% | 15.14% | — | 18.50% | 23.89% | 37.20% | 32.93% | — | — | 6.49% | — | 2.69% | — |
| Dec 2, 2005 | 37.05% | 12.35% | 8.94% | — | 24.17% | 25.72% | 36.60% | 34.09% | — | — | 3.70% | — | -5.34% | — |
Based on: 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).