Adobe vs. Intuit: Which Beaten-Down Software Stock Is a Better Buy?
Adobe and Intuit, two dominant software providers, have seen their stocks decline despite strong revenue growth and AI-driven business expansion. A comparison suggests Adobe is a better buy due to its lower valuation.
Adobe and Intuit, two leading software companies, have experienced significant stock declines in 2026 despite delivering strong results and leveraging AI to drive their businesses. Adobe's revenue reached $6.4 billion in its fiscal first quarter of 2026, up 12% year over year, with non-GAAP earnings per share jumping 19% to $6.06. The company's AI-first annualized recurring revenue more than tripled year over year. Adobe's stock is now trading at a price-to-earnings ratio of 14.4, considered conservative for a company of its caliber. In contrast, Intuit's revenue grew 17% year over year to $4.7 billion in its fiscal second quarter of 2026, with online ecosystem revenue rising 21%. However, Intuit's stock trades at a price-to-earnings ratio of about 26, making it pricier than Adobe. As a result, Adobe appears to be a better buy due to its wider margin of safety.
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