Adobe Inc.

Adobe has a good track record of capital allocation. Management prioritizes reinvestment in high-return R&D (Adobe spends 20% of revenue on R&D, around $7B in FY2024), fueling future growth. Adobe also returns surplus cash to shareholders via buybacks.

In March 2024 it authorized a new $25 billion buyback program) and has used accelerated share repurchases in 2024. These repurchases are designed to offset dilution from stock-based compensation. While Adobe does issue some equity for employee compensation, buybacks and limited dilution help prevent significant share count inflation.

Adobe has historically avoided major debt-financed acquisitions (aside from the attempted Figma deal, which it ultimately did not finalize). The company remains disciplined: it halted the Figma acquisition and paid a small fee rather than overpaying.

Overall, capital is well managed – reinvested into the moat (AI, cloud infrastructure) and smartly returned via buybacks, which reinforces shareholder value.