Adobe's $25 Billion Buyback Sends a Clear Signal. Yet Shares Remain Dirt Cheap.
Adobe's board authorized a new $25 billion share repurchase program, signaling confidence in its cash flow and long-term value, despite a 27% year-to-date decline in its shares. The company's revenue rose 12% year over year to $6.40 billion in its first quarter of fiscal 2026.
Adobe's board authorized a $25 billion share repurchase program, set to run until April 30, 2030. The company's shares have declined 27% year to date, amid concerns that generative AI will erode its pricing power. Despite this, Adobe's revenue rose 12% to $6.40 billion in its first quarter of fiscal 2026. Annualized recurring revenue (ARR) exited the quarter at $26.06 billion, up 10.9%. ARR from Adobe's AI-first applications more than tripled year over year. The company repurchased $2.5 billion of its own stock during fiscal Q1 and is guiding for revenue of $25.9 billion to $26.1 billion for the full year. Adobe's shares trade at about 11 times forward earnings, making it one of the cheapest large-cap software names.
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