ADBENEUTRAL

ADBE Gross Margin Analysis

89.1%

Higher than 95% of Technology sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after covering the direct costs of producing its goods or services — Adobe’s 89.1% means it retains nearly 89 cents of every dollar earned from product sales.

Sector Performance

95th percentile

ADBE

89.1%

Sector Median

66.3%

Sector Avg

62.2%

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Deep Analysis

This is well above the sector median of 62.2%, placing Adobe in the 95th percentile among technology peers. No trend data is available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and only a single historical value of 89.1% has been provided. The current level is exceptionally high, signaling strong pricing power and efficient cost management, but without a trend direction the sustainability of this margin is unclear, adding uncertainty to the investment case. While the high margin is a positive indicator, it does not contradict the overall NEUTRAL verdict, as the lack of trend information leaves the metric alone insufficient to shift the rating.

Frequently Asked Questions

What does the Gross Margin tell investors about ADBE?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ADBE's Gross Margin compare to its sector?

ADBE's Gross Margin of 89.1% compares to a Technology sector median of 66.3%, placing it in the 95th percentile.

Who are ADBE's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: BRZE (65.7%), AVGO (67.2%), ADI (67.3%), TSM (67.7%), MDB (72.2%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.