Adobe’s earnings have grown sharply over the past decade, but its stock has lagged the broader market after investors reassessed how much they were willing to pay for that growth.
The comparison reversed after the 2021 peak. The index fund gained about 77% from that November close, while Adobe shares fell roughly 65%. The stock also dropped about 31% in 2026 through the period described, declining from approximately $350 at the end of the previous year as software shares sold off amid concerns that artificial-intelligence agents could replace some subscription-based software work.
At a valuation of about 10 times adjusted earnings, the stock reflects much lower expectations than it did in 2021, when it traded above 50 times adjusted earnings. That contrast implies the recent performance has been driven more by changing valuation and uncertainty over AI’s effect on Adobe’s customers than by a collapse in the company’s reported earnings growth.