Adobe Inc.

Section 1: Company Overview, Shariah Compliance Standards and Fundamentals 

Section 1.1: Adobe Inc. (NASDAQ: ADBE), founded in 1982 and headquartered in San Jose, California, is a prominent American software company widely recognized for its Creative Cloud suite, which includes flagship applications such as Photoshop, Illustrator, and Premiere Pro.

Kalkine’s ‘The Shariah Compliance Report’ covers the Investment Highlights, Shariah-compliance standards, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section 1.2: What are the Key Metrics for Shariah Compliance to be Considered?

The Shariah Compliance Report aims to identify equities that align with Shariah and ethical principles, providing valuable insights on financial metrics, business activities and compliance with Islamic finance norms. 

Key Shariah Screening Criteria and Thresholds

Shariah Metrics for Adobe (NASDAQ: ADBE)

Revenue Segmentation of Adobe in Q3FY25 & Historical Compliance of Financial Ratios:

1.3 The Key Positives, Negatives, and Investment summary   

1.4 Top 10 shareholders:

The top 10 shareholders together form ~31.67% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc., and BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~9.84% and ~6.09%, respectively.

1.5 Key Metrics:

The chart’s movements reflect a combination of Adobe’s capital allocation strategy and quarterly operating dynamics. Cash & equivalents trended downward as the company executed sizable share repurchases and invested in AI-driven product expansion, causing outflows to exceed otherwise strong operating inflows. Free cash flow showed notable volatility—dropping in Q1FY25 due to seasonally softer billing cycles, higher working-capital requirements, and timing-related cash movements, then recovering meaningfully in subsequent quarters as subscription collections improved, ARR expanded, and operating cash flow reached a record level in Q3FY25. The current ratio declined as liquidity tightened and cash balances fell faster than current liabilities, influenced by rising deferred revenue and continued investment outlays, before seeing a mild uptick in Q3FY25 supported by stronger operating cash generation. Overall, the chart illustrates a period of deliberate capital deployment alongside strengthening fundamentals driven by recurring revenue growth.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q3FY25:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Technical Summary:

 Price Performance:

• From March to June, the stock attempted multiple rebounds but failed to break above the declining MA50, which acted as dynamic resistance. Since July, price volatility contracted slightly, but the directional drift remained downward. In November, the stock slipped again after a brief consolidation, confirming continued weakness.
• From a weekly timeframe perspective, the stock is currently positioned at a critical support zone between USD 315 and USD 318. This area has historically acted as a strong demand region, and price stability here will be important for determining whether the trend can stabilise and potentially reverse upward or if a breakdown could trigger further downside momentum.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 26, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.