ADBE vs. MSFT

Last updated Apr 1, 2026

Compare and contrast key facts about Adobe Inc (ADBE) and Microsoft Corporation (MSFT).

Performance

ADBE vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Adobe Inc (ADBE) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

ADBE vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ADBE Adobe Inc	-30.55%	-21.29%	-25.46%	77.28%	-40.65%	13.38%	51.64%	45.78%	29.10%	70.22%
MSFT Microsoft Corporation	-23.28%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Fundamentals

Market Cap ADBE : $99.91B MSFT : $2.76T
EPS ADBE : $17.05 MSFT : $15.98
PE Ratio ADBE : 14.26 MSFT : 23.16
PEG Ratio ADBE : 1.00 MSFT : 1.62
PS Ratio ADBE : 4.20 MSFT : 9.04
PB Ratio ADBE : 8.74 MSFT : 7.06
Total Revenue (TTM) ADBE : $24.45B MSFT : $305.45B
Gross Profit (TTM) ADBE : $21.82B MSFT : $209.50B
EBITDA (TTM) ADBE : $9.71B MSFT : $191.39B

Returns By Period

In the year-to-date period, ADBE achieves a -30.55% return, which is significantly lower than MSFT's -23.28% return. Over the past 10 years, ADBE has underperformed MSFT with an annualized return of 9.83%, while MSFT has yielded a comparatively higher 22.44% annualized return.

ADBE

• 1D: 0.81%
• 1M: -7.37%
• YTD: -30.55%
• 6M: -31.09%
• 1Y: -36.62%
• 3Y*: -14.24%
• 5Y*: -12.84%
• 10Y*: 9.83%

MSFT

• 1D: 3.12%
• 1M: -5.75%
• YTD: -23.28%
• 6M: -28.23%
• 1Y: -0.64%
• 3Y*: 9.54%
• 5Y*: 9.74%
• 10Y*: 22.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Return for Risk

ADBE vs. MSFT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ADBE

ADBE Risk / Return Rank: 6
ADBE Sharpe Ratio Rank: 2
ADBE Sortino Ratio Rank: 4
ADBE Omega Ratio Rank: 5
ADBE Calmar Ratio Rank: 11
ADBE Martin Ratio Rank: 5

MSFT

MSFT Risk / Return Rank: 38
MSFT Sharpe Ratio Rank: 41
MSFT Sortino Ratio Rank: 34
MSFT Omega Ratio Rank: 35
MSFT Calmar Ratio Rank: 41
MSFT Martin Ratio Rank: 40

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ADBE vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Adobe Inc (ADBE) and Microsoft Corporation (MSFT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ADBE	MSFT	Difference
Sharpe ratio Return per unit of total volatility	-1.19	-0.02	-1.16
Sortino ratio Return per unit of downside risk	-1.66	0.15	-1.82
Omega ratio Gain probability vs. loss probability	0.79	1.02	-0.23
Calmar ratio Return relative to maximum drawdown	-0.84	-0.05	-0.79
Martin ratio Return relative to average drawdown	-1.73	-0.12	-1.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ADBE vs. MSFT - Sharpe Ratio Comparison

The current ADBE Sharpe Ratio is -1.19, which is lower than the MSFT Sharpe Ratio of -0.02. The chart below compares the historical Sharpe Ratios of ADBE and MSFT, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	ADBE	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.19	-0.02	-1.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.36	0.37	-0.74
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	0.84	-0.55
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.74	-0.33

Correlation

The correlation between ADBE and MSFT is 0.46, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

ADBE vs. MSFT - Dividend Comparison

ADBE has not paid dividends to shareholders, while MSFT's dividend yield for the trailing twelve months is around 0.94%.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ADBE Adobe Inc	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MSFT Microsoft Corporation	0.94%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%

Drawdowns

ADBE vs. MSFT - Drawdown Comparison

The maximum ADBE drawdown since its inception was -79.89%, which is greater than MSFT's maximum drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for ADBE and MSFT.

Drawdown Indicators

	ADBE	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-79.89%	-69.38%	-10.51%
Max Drawdown (1Y) Largest decline over 1 year	-44.18%	-33.91%	-10.27%
Max Drawdown (5Y) Largest decline over 5 years	-65.88%	-37.15%	-28.73%
Max Drawdown (10Y) Largest decline over 10 years	-65.88%	-37.15%	-28.73%
Current Drawdown Current decline from peak	-64.69%	-31.43%	-33.26%
Average Drawdown Average peak-to-trough decline	-25.80%	-21.77%	-4.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	21.32%	12.46%	+8.86%

Volatility

ADBE vs. MSFT - Volatility Comparison

Adobe Inc (ADBE) has a higher volatility of 12.02% compared to Microsoft Corporation (MSFT) at 6.48%. This indicates that ADBE's price experiences larger fluctuations and is considered to be riskier than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ADBE	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.02%	6.48%	+5.54%
Volatility (6M) Calculated over the trailing 6-month period	23.69%	19.15%	+4.54%
Volatility (1Y) Calculated over the trailing 1-year period	30.98%	26.46%	+4.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.53%	26.19%	+9.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.87%	26.89%	+6.98%

Financials

ADBE vs. MSFT - Profitability Comparison

The chart below illustrates the profitability comparison between Adobe Inc and Microsoft Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

ADBE - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Adobe Inc reported a gross profit of 5.73B and revenue of 6.40B. Therefore, the gross margin over that period was 89.6%.

MSFT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Microsoft Corporation reported a gross profit of 55.30B and revenue of 81.27B. Therefore, the gross margin over that period was 68.0%.

ADBE - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Adobe Inc reported an operating income of 2.42B and revenue of 6.40B, resulting in an operating margin of 37.8%.

MSFT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Microsoft Corporation reported an operating income of 38.28B and revenue of 81.27B, resulting in an operating margin of 47.1%.

ADBE - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Adobe Inc reported a net income of 1.89B and revenue of 6.40B, resulting in a net margin of 29.5%.

MSFT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Microsoft Corporation reported a net income of 38.46B and revenue of 81.27B, resulting in a net margin of 47.3%.