Software giant Adobe will keep beating the rest

Adobe is in perfect position to profit from the remote-working revolution, says Stephen Connolly.

iPad © Adobe
Adobe has benefited from our increased need for digitisation
(Image credit: © Adobe)

Creative-software group Adobe (Nasdaq: ADBE) came out with record-breaking results this week, beating analysts’ expectations yet again. Exceptional businesses are rare but Adobe is one of them. Over the past five years, profits have leapt 60% annually and cashflow is up over 300%, while gross margins have averaged an eye-catching 86%. And that was before the pandemic. Covid-19 has clearly triggered the need for even more digitisation, and at a faster pace as technology plays an increasing role in our lives. Adobe, which makes this happen, will be enjoying tailwinds for years to come.

An obscure giant

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Investment columnist

Stephen Connolly is the managing director of consultancy Plain Money. He has worked in investment banking and asset management for over 30 years and writes on business and finance topics.