Home > Comparison > Technology > ADBE vs CRWD
The strategic rivalry between Adobe Inc. and CrowdStrike Holdings defines the current trajectory of the technology sector’s software infrastructure landscape. Adobe, a diversified software powerhouse, emphasizes creative and digital experience solutions, while CrowdStrike focuses exclusively on cloud-delivered cybersecurity services. This head-to-head contrasts a broad platform leader with a specialized security innovator. This analysis will pinpoint which company’s strategy offers superior risk-adjusted potential for a diversified portfolio in 2026.
Table of contents
Companies Overview
Adobe Inc. and CrowdStrike Holdings, Inc. each command significant influence in the software infrastructure sector in 2026.
Adobe Inc.: Creative and Customer Experience Powerhouse
Adobe dominates as a diversified software company specializing in creative and customer experience solutions. Its core revenue derives from subscription services like Creative Cloud and Document Cloud, serving enterprises and individual creators. In 2026, Adobe focuses on enhancing its Digital Experience segment to optimize customer engagement and commerce analytics, reinforcing its leadership in content creation and marketing technology.
CrowdStrike Holdings, Inc.: Cloud Security Innovator
CrowdStrike stands out as a cloud-delivered cybersecurity provider specializing in endpoint protection and threat intelligence. It generates revenue primarily through subscriptions to its Falcon platform, protecting endpoints, identities, and workloads. In 2026, CrowdStrike sharpens its Zero Trust security offerings and expands cloud modules, aiming to meet rising global demand for integrated, proactive cyber defense.
Strategic Collision: Similarities & Divergences
Both companies operate in software infrastructure but diverge sharply in business philosophy. Adobe emphasizes a broad ecosystem for creative and marketing workflows, while CrowdStrike pursues an open, cloud-native platform for security. Their primary battleground lies in enterprise software adoption—content versus cybersecurity. Adobe attracts investors seeking stable, diversified digital media growth; CrowdStrike appeals to those prioritizing high-growth cybersecurity innovation.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Adobe Inc. (ADBE) | CrowdStrike Holdings, Inc. (CRWD) |
|---|---|---|
| Revenue | 23.8B | 3.95B |
| Cost of Revenue | 2.71B | 991M |
| Operating Expenses | 12.4B | 3.08B |
| Gross Profit | 21.1B | 2.96B |
| EBITDA | 9.75B | 295M |
| EBIT | 8.93B | 81M |
| Interest Expense | 263M | 26M |
| Net Income | 7.13B | -19M |
| EPS | 16.73 | -0.08 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals the true operational efficiency and growth momentum of Adobe Inc. and CrowdStrike Holdings, Inc. as corporate engines in 2026.
Adobe Inc. Analysis
Adobe’s revenue climbed steadily from $15.8B in 2021 to $23.8B in 2025, reflecting a consistent growth trajectory. Net income surged from $4.8B to $7.1B, supporting robust net margins near 30%. The company maintains strong gross margins above 88%, signaling exceptional cost control and pricing power. In 2025, Adobe’s efficiency intensified with a 25.8% EBIT growth and a 35.1% EPS increase, underscoring sustained profitability improvement.
CrowdStrike Holdings, Inc. Analysis
CrowdStrike posted rapid revenue growth, expanding from $874M in 2021 to $3.95B in 2025, a remarkable 352% increase over five years. However, net income remains negative at -$19M in 2025, despite a positive turnaround in 2024. Gross margins hold at a healthy 75%, yet EBIT margin stagnates near 2%, reflecting elevated operating expenses scaling with growth. The latest year saw revenue jump 29.4%, but profitability metrics contracted, indicating ongoing investment pressures.
Margin Power vs. Revenue Scale
Adobe dominates with superior profitability and margin stability, turning scale into consistent bottom-line gains. CrowdStrike impresses with explosive top-line growth but struggles to convert sales into profit, reflecting a classic high-growth tech profile. For investors prioritizing earnings quality, Adobe presents a more attractive, efficient earnings engine. CrowdStrike suits those focused on aggressive expansion but facing profitability headwinds.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of each company:
| Ratios | Adobe Inc. (ADBE) | CrowdStrike Holdings, Inc. (CRWD) |
|---|---|---|
| ROE | 61.3% | -0.6% |
| ROIC | 36.7% | 0.7% |
| P/E | 19.13 | -5055.66 |
| P/B | 11.73 | 29.71 |
| Current Ratio | 1.00 | 1.67 |
| Quick Ratio | 1.00 | 1.67 |
| D/E | 0.57 | 0.24 |
| Debt-to-Assets | 22.5% | 9.1% |
| Interest Coverage | 33.1 | -4.58 |
| Asset Turnover | 0.81 | 0.45 |
| Fixed Asset Turnover | 10.88 | 4.76 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, exposing hidden risks and uncovering operational excellence critical to investors’ decisions.
Adobe Inc.
Adobe demonstrates robust profitability with a 61.34% ROE and a strong 30% net margin, reflecting operational excellence. Its P/E at 19.13 signals a fairly valued stock, neither cheap nor stretched. Adobe lacks dividends but invests heavily in R&D, fueling future growth and enhancing shareholder value through innovation.
CrowdStrike Holdings, Inc.
CrowdStrike posts negative profitability metrics, with a -0.59% ROE and -0.49% net margin, indicating operational challenges. Its P/E is negative but marked favorable due to losses, while a high P/B of 29.71 suggests valuation risk. The company retains cash to fund aggressive R&D growth, foregoing dividends for market expansion.
Balanced Strength vs. Growth Gambit
Adobe offers a healthier profitability profile and reasonable valuation, balancing risk and reward well. CrowdStrike’s metrics reveal operational weakness and valuation stretch, fitting growth-seeking investors willing to tolerate higher risk. The choice depends on appetite for stable returns versus aggressive growth potential.
Which one offers the Superior Shareholder Reward?
Adobe Inc. (ADBE) and CrowdStrike Holdings, Inc. (CRWD) both eschew dividends, focusing on growth reinvestment. Adobe boasts robust free cash flow per share of 23.1 and a disciplined capital allocation, avoiding dividend payouts but executing moderate buybacks. CrowdStrike, with weaker margins and negative net income, demonstrates smaller free cash flow of 4.4 per share and minimal buyback activity. Adobe’s strategy reflects sustainable shareholder value via strong cash generation and capital efficiency. I conclude Adobe offers a superior total return profile in 2026, balancing growth with prudent capital returns.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Adobe Inc. and CrowdStrike Holdings, Inc., highlighting their distinct financial strengths and weaknesses:
Adobe demonstrates a more balanced profile with strong returns on equity (5) and assets (5), but moderate debt management (2) and valuation scores (PE 3, PB 1). CrowdStrike relies on a specific edge in moderate debt control (3) but struggles with profitability metrics (ROE 1, ROA 1) and valuation (PE 1, PB 1). Adobe’s diversified strength across profitability and valuation metrics positions it as a more stable investment.
Bankruptcy Risk: Solvency Showdown
The Altman Z-Score gap shows both firms comfortably in the safe zone, with CrowdStrike’s 12.77 far exceeding Adobe’s 8.14, signaling stronger long-term solvency for CrowdStrike in this cycle:
Financial Health: Quality of Operations
Adobe scores a solid 6 on the Piotroski F-Score, indicating healthy operational quality. CrowdStrike’s 4 suggests average financial health, with potential internal red flags compared to Adobe’s stronger metrics:
How are the two companies positioned?
This section dissects Adobe and CrowdStrike’s operational DNA by comparing revenue distribution and internal strengths versus weaknesses. The goal is to confront their economic moats to identify which model offers the most resilient and sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This comparison dissects how Adobe Inc. and CrowdStrike Holdings diversify their income streams and where their primary sector bets firmly lie:
Adobe’s revenue dwarfs CrowdStrike’s, anchored by Digital Media at $40.4B in 2025, complemented by $5.9B from Digital Experience. This mix reveals Adobe’s ecosystem lock-in through creative and marketing software. CrowdStrike relies heavily on Subscription and Circulation at $3.76B, with a smaller $192M from Professional Services, indicating concentration risk but strong SaaS growth. Adobe’s diversified model mitigates volatility better than CrowdStrike’s subscription-heavy focus.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of Adobe Inc. and CrowdStrike Holdings, Inc.:
Adobe Inc. Strengths
- Strong profitability with 30% net margin
- High ROE of 61.34% and ROIC of 36.69%
- Diverse product segments including Digital Media and Digital Experience
- Significant global presence with $14.1B Americas and $6.3B EMEA revenue
- Favorable debt metrics with 22.54% debt-to-assets and strong interest coverage
- High fixed asset turnover at 10.88
CrowdStrike Holdings, Inc. Strengths
- Solid liquidity with current and quick ratios at 1.67
- Low leverage with 0.24 debt-to-equity and 9.07% debt-to-assets
- Growing subscription revenue of $3.76B in 2025
- Favorable fixed asset turnover of 4.76
- Diversified geographic footprint including $2.68B US and $619M EMEA revenue
- Neutral WACC at 8.6%
Adobe Inc. Weaknesses
- Unfavorable WACC at 10.6%, higher than ROIC cautioning capital cost
- Low current ratio at 1.0 may signal liquidity risk
- High price-to-book at 11.73 suggests premium valuation
- Zero dividend yield
- Moderate asset turnover at 0.81
CrowdStrike Holdings, Inc. Weaknesses
- Negative profitability with -0.49% net margin and negative ROE
- Minimal ROIC at 0.7% signals weak capital efficiency
- High price-to-book of 29.71 indicates valuation risk
- Unfavorable asset turnover at 0.45
- Zero dividend yield
- Interest coverage low at 3.07, increasing financial risk
Adobe’s strengths lie in robust profitability and diversified product segments, but liquidity and valuation metrics present caution. CrowdStrike shows strong liquidity and low leverage but faces challenges with profitability and asset efficiency. These contrasts impact strategic priorities around capital allocation and growth investments.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competition erosion. Let’s examine how Adobe and CrowdStrike defend their turf:
Adobe Inc.: Subscription Powerhouse with Intangible Asset Moat
Adobe’s moat stems from its dominant Creative Cloud subscription ecosystem and strong brand identity. This yields high ROIC at 26%, stable 88.6% gross margins, and consistent cash flow. New AI-driven creative tools and expanding digital experience platforms deepen its moat in 2026.
CrowdStrike Holdings, Inc.: Rapid Growth via Network Effects
CrowdStrike’s moat relies on its cloud-native Falcon platform’s network effects and threat intelligence. Despite negative net margin, its accelerating revenue growth (+29% last year) reflects expanding market share. Its rising ROIC trend signals improving capital efficiency, but it faces margin pressure as it scales globally.
Subscription Ecosystem vs. Cloud Security Network: Adobe’s Moat Runs Deeper
Adobe’s moat is wider and more durable, demonstrated by a 26% ROIC well above WACC, while CrowdStrike still sheds value despite growth. Adobe’s entrenched customer base and recurring revenues better defend market share against competition.
Which stock offers better returns?
Over the past 12 months, Adobe Inc. and CrowdStrike Holdings, Inc. showed contrasting price movements with marked volatility and shifting trading volumes.
Trend Comparison
Adobe Inc.’s stock fell 46.85% over the past year, marking a bearish trend with decelerating losses. The price ranged between 578.34 and 293.25, showing extreme volatility (std dev 78.57).
CrowdStrike’s stock rose 36.72% over the same period, indicating a bullish trend despite deceleration. Prices fluctuated widely between 543.01 and 217.89, with volatility near Adobe’s level (std dev 80.24).
CrowdStrike outperformed Adobe with a strong positive return versus Adobe’s steep decline. Both stocks showed recent downward slopes, but CrowdStrike delivered the highest market performance overall.
Target Prices
Analysts present a bullish consensus for both Adobe Inc. and CrowdStrike Holdings, projecting significant upside from current prices.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Adobe Inc. | 280 | 500 | 390.31 |
| CrowdStrike Holdings, Inc. | 353 | 706 | 551.26 |
Adobe’s consensus target of 390.31 suggests a 33% upside from its 293.25 price, indicating robust confidence. CrowdStrike’s 551.26 target offers a 25% premium, reflecting strong growth expectations but also higher valuation risks.
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How do institutions grade them?
This section compares recent institutional grades for Adobe Inc. and CrowdStrike Holdings, Inc.:
Adobe Inc. Grades
The table below summarizes recent grading updates from leading financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2026-01-26 |
| Oppenheimer | Downgrade | Perform | 2026-01-13 |
| BMO Capital | Downgrade | Market Perform | 2026-01-09 |
| Jefferies | Downgrade | Hold | 2026-01-05 |
| Citigroup | Maintain | Neutral | 2025-12-17 |
| BMO Capital | Maintain | Outperform | 2025-12-15 |
| Keybanc | Downgrade | Underweight | 2025-12-15 |
| Wolfe Research | Maintain | Outperform | 2025-12-11 |
| TD Cowen | Maintain | Hold | 2025-12-11 |
| Oppenheimer | Maintain | Outperform | 2025-12-11 |
CrowdStrike Holdings, Inc. Grades
Below is the latest grading information from reputable financial firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Macquarie | Maintain | Neutral | 2026-01-27 |
| BTIG | Maintain | Buy | 2026-01-13 |
| Citigroup | Maintain | Buy | 2026-01-13 |
| Keybanc | Downgrade | Sector Weight | 2026-01-12 |
| Berenberg | Upgrade | Buy | 2026-01-09 |
| Stephens & Co. | Maintain | Overweight | 2025-12-18 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-18 |
| Freedom Capital Markets | Upgrade | Buy | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-12-04 |
| Goldman Sachs | Maintain | Buy | 2025-12-04 |
Which company has the best grades?
CrowdStrike consistently holds stronger buy and overweight ratings compared to Adobe’s neutral and hold grades. This suggests investors may perceive better near-term growth prospects in CrowdStrike.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Adobe Inc.
- Dominates diversified software with strong brand loyalty but faces intense SaaS competition.
CrowdStrike Holdings, Inc.
- Operates in cybersecurity, a rapidly evolving field with fierce competition and innovation demands.
2. Capital Structure & Debt
Adobe Inc.
- Moderate debt-to-equity ratio (0.57) with strong interest coverage (33.96x) supports financial stability.
CrowdStrike Holdings, Inc.
- Lower debt-to-equity (0.24) and moderate interest coverage (3.07x) reflect cautious leverage but thinner safety margin.
3. Stock Volatility
Adobe Inc.
- Beta of 1.53 indicates higher volatility than the market, increasing investor risk.
CrowdStrike Holdings, Inc.
- Beta near 1.03 suggests volatility close to market average, offering somewhat steadier price movement.
4. Regulatory & Legal
Adobe Inc.
- Faces standard tech sector scrutiny on data privacy and intellectual property.
CrowdStrike Holdings, Inc.
- Cybersecurity focus exposes it to regulatory pressures on data protection and breach liabilities.
5. Supply Chain & Operations
Adobe Inc.
- Primarily cloud-based delivery reduces supply chain risks but depends on global data infrastructure.
CrowdStrike Holdings, Inc.
- Cloud-native platform similarly limits physical supply chain exposure but relies on continuous tech upgrades.
6. ESG & Climate Transition
Adobe Inc.
- Increasing ESG awareness pressures Adobe to maintain sustainable operations amid global tech scrutiny.
CrowdStrike Holdings, Inc.
- ESG demands challenge CrowdStrike to balance rapid growth with ethical cybersecurity practices and environmental impact.
7. Geopolitical Exposure
Adobe Inc.
- Global footprint exposes Adobe to trade tensions and regulatory differences across markets.
CrowdStrike Holdings, Inc.
- CrowdStrike’s global operations similarly face geopolitical risks, especially in data sovereignty and cross-border regulations.
Which company shows a better risk-adjusted profile?
Adobe’s dominant market position and robust financial health mitigate risks better than CrowdStrike, which faces profitability challenges and higher operational risks. Adobe’s strong interest coverage and Altman Z-score in the safe zone contrast with CrowdStrike’s thinner margins and moderate Piotroski score, suggesting Adobe offers a superior risk-adjusted profile in 2026.
Final Verdict: Which stock to choose?
Adobe Inc. stands out as a powerhouse of efficiency and value creation. Its durable competitive moat stems from consistently earning returns well above its cost of capital. The main point of vigilance is its tight liquidity position, which could pressure short-term flexibility. Adobe suits investors aiming for steady, long-term growth in mature tech.
CrowdStrike’s strategic moat lies in its cloud-native cybersecurity platform with strong recurring revenues. It offers greater liquidity and a more conservative balance sheet than Adobe. Despite current profitability challenges, CrowdStrike fits investors favoring dynamic growth with an appetite for higher volatility and turnaround potential.
If you prioritize durable profitability and a proven value creator, Adobe outshines with its efficient capital use and robust margins. However, if you seek high-growth exposure and can tolerate short-term earnings volatility, CrowdStrike offers better growth momentum and a safer liquidity profile. Both represent distinct investment archetypes with different risk-return trade-offs.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Adobe Inc. and CrowdStrike Holdings, Inc. to enhance your investment decisions:
