ADBE vs. MSFT
ADBE (Adobe Inc) and MSFT (Microsoft Corporation) are both stocks. Both operate in the Software - Infrastructure industry within the Technology sector. Over the past 10 years, ADBE returned 10.41%/yr vs 22.79%/yr for MSFT. Their 0.47 correlation means their historical movements had little consistent relationship.
Performance
ADBE vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, ADBE achieves a -24.73% return, which is significantly lower than MSFT's -18.89% return. Over the past 10 years, ADBE has underperformed MSFT with an annualized return of 10.41%, while MSFT has yielded a comparatively higher 22.79% annualized return.
ADBE
- 1D
- 5.72%
- 1M
- 27.61%
- 6M
- -12.07%
- YTD
- -24.73%
- 1Y
- -28.94%
- 3Y*
- -20.73%
- 5Y*
- -15.78%
- 10Y*
- 10.41%
- ALL TIME*
- 19.74%
MSFT
- 1D
- -0.71%
- 1M
- 5.96%
- 6M
- -18.55%
- YTD
- -18.89%
- 1Y
- -23.20%
- 3Y*
- 5.72%
- 5Y*
- 7.39%
- 10Y*
- 22.79%
- ALL TIME*
- 24.63%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
ADBE Adobe Inc | $1.43B | $1.32B | $1.47B |
| $12.17B | $12.65B | $15.40B |
ADBE vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ADBE Adobe Inc | -24.73% | -21.29% | -25.46% | 77.28% | -40.65% | 13.38% | 51.64% | 45.78% | 29.10% | 70.22% |
MSFT Microsoft Corporation | -18.89% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between ADBE and MSFT is 0.43, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.43 |
Correlation (3Y) Balances recent behavior with more history. | 0.48 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.62 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.68 |
Correlation (All Time) Calculated using the full available price history since Aug 20, 1986 | 0.47 |
The correlation between ADBE and MSFT shifts across timeframes, from 0.43 (1 year) to 0.68 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
ADBE:
$104.71B
MSFT:
$2.90T
ADBE:
$17.42
MSFT:
$17.94
ADBE:
15.12
MSFT:
21.77
ADBE:
1.07
MSFT:
1.26
ADBE:
4.34
MSFT:
8.77
ADBE:
9.19
MSFT:
6.58
ADBE:
$25.20B
MSFT:
$331.84B
ADBE:
$22.46B
MSFT:
$225.47B
ADBE:
$9.68B
MSFT:
$207.52B
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Return for Risk
ADBE vs. MSFT — Risk / Return Rank
ADBE
MSFT
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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ADBE | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.08 | ||
| Sortino ratioReturn per unit of downside risk | +0.12 | ||
| Omega ratioGain probability vs. loss probability | 0.89 | 0.87 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | -0.61 | -0.67 | +0.06 |
| Martin ratioReturn relative to average drawdown | -1.17 | -1.20 | +0.03 |
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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.
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Drawdown Indicators
| ADBE | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.89% | -69.38% | -10.51% |
Max Drawdown (1Y)Largest decline over 1 year | -47.37% | -34.50% | -12.87% |
Max Drawdown (3Y)Largest decline over 3 years | -69.53% | -34.50% | -35.03% |
Max Drawdown (5Y)Largest decline over 5 years | -71.90% | -37.15% | -34.75% |
Max Drawdown (10Y)Largest decline over 10 years | -71.90% | -37.15% | -34.75% |
Current DrawdownCurrent decline from peak | -61.73% | -27.50% | -34.23% |
Average DrawdownAverage peak-to-trough decline | -26.12% | -21.80% | -4.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 25.31% | 19.31% | +6.00% |
Volatility
ADBE vs. MSFT - Volatility Comparison
Adobe Inc (ADBE) has a higher volatility of 14.79% compared to Microsoft Corporation (MSFT) at 7.39%. 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.
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Volatility by Period
| ADBE | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 14.79% | 7.39% | +7.40% |
Volatility (6M)Calculated over the trailing 6-month period | 32.62% | 24.25% | +8.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 38.14% | 27.69% | +10.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 37.29% | 27.11% | +10.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 34.80% | 27.17% | +7.63% |
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 0.91%.
| Position | 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 | 0.91% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Financials
ADBE vs. MSFT - Financials Comparison
This section allows you to compare key financial metrics between Adobe Inc and Microsoft Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
ADBE vs. MSFT - Profitability Comparison
ADBE - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Adobe Inc reported a gross profit of 5.90B and revenue of 6.62B. Therefore, the gross margin over that period was 89.2%.
MSFT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Microsoft Corporation reported a gross profit of 60.48B and revenue of 90.01B. Therefore, the gross margin over that period was 67.2%.
ADBE - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Adobe Inc reported an operating income of 2.24B and revenue of 6.62B, resulting in an operating margin of 33.8%.
MSFT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Microsoft Corporation reported an operating income of 40.60B and revenue of 90.01B, resulting in an operating margin of 45.1%.
ADBE - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Adobe Inc reported a net income of 1.71B and revenue of 6.62B, resulting in a net margin of 25.9%.
MSFT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Microsoft Corporation reported a net income of 35.77B and revenue of 90.01B, resulting in a net margin of 39.7%.
Frequently Asked Questions
ADBE and MSFT have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ADBE has higher volatility (14.79%) compared to MSFT (7.39%). In terms of maximum drawdown, ADBE dropped -79.89% vs MSFT's -69.38%.
ADBE currently has the higher Sharpe Ratio (-0.76 vs -0.84), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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