Compare moats
Up to three covered companies, band by band. Every call is a curated editorial judgment, never a disclosed figure — and every band carries its cited basis.
| Eli Lilly and Company | Applied Digital | Adobe | |
|---|---|---|---|
| Moat rating | wide Eli Lilly's FY2025 10-K states "Intellectual property protection is critical" and that compound patents provide roughly 20-year market exclusivity ("patents in each relevant country last for a period of 20 years"), warning that loss of patent protection causes a "severe and rapid decline in revenues." Backed by an 83.0% gross margin (up from 81.3% in 2024) and a fast-growing, patent-protected incretin franchise (Mounjaro +99%, Zepbound +175% in 2025), the economic moat is wide and durable. Source: LLY FY2025 10-K. | none The FY2026 10-K (filed 2026-07-29) shows contracted revenue, not a demonstrated competitive edge. About 1,410 MW is leased under 15-year take-or-pay, non-cancellable base terms worth about $36.2 billion, but only about 100 MW of the roughly 1.5 GW that is contracted and either operating or under construction was operating and earning revenue at May 31, 2026, and Item 1A says "lessees may have the right to terminate applicable leases if there are significant delays in construction." Item 1A also concedes "We do not have the resources to compete with larger providers of similar products or services at this time," and the Competition section names 13 power-advantaged developers the company competes with. Signed leases give revenue visibility, but the filing does not show a durable advantage. | narrow The FY2025 10-K's own Competition section says the markets for Adobe's solutions are characterized by 'limited barriers to entry, short product lifecycles, customer price sensitivity ... and the frequent entry of new solutions or competitors', and Item 1A adds that Adobe 'face[s] increasing competition from companies offering generative and agentic AI solutions, including but not limited to prompt-based and multi-modal creation and editing, document productivity and understanding' - the two categories that carry the Digital Media segment. That disclosed contestability caps the moat below wide, while the same filing's industry-standard app designations and 89% consolidated gross margin keep it well above none. |
| Moat type | intangibles ip Per the LLY FY2025 10-K, the pharma protection "anticipated to be of most relevance" is "patents claiming the active ingredient (the compound patent)," supplemented by regulatory data protection, FDA approvals, and brands — i.e., intangible assets. The 10-K notes that without such protection, products face intense generic and biosimilar price competition that erodes revenue quickly. | none The 10-K claims three advantages: power-advantaged sites (it believes securing power and interconnection ahead of demand is 'the principal constraint on new HPC capacity and a core differentiator for us from many of our competitors'), a standardized 'franchise-style' design, and hyperscaler master service and master telecom service agreements 'that are difficult to obtain.' The filing does not show any of them to be durable. Its Competition section says competition 'centers on securing and developing sites with access to large-scale, reliable, and cost-competitive power and interconnection' and names 13 power-advantaged developers going after the same leases, and Item 1A concedes it lacks the resources to compete with larger providers. Signed leases are take-or-pay and non-cancellable, so a tenant leaving for convenience owes 'the full remaining contractual value,' but that is contractual lock-in on each lease rather than a moat source, so no moat type is assigned. | switching costs The 10-K frames Adobe's differentiation as an integrated ecosystem the customer's work lives inside: Creative Cloud Pro subscribers get 'cloud storage to easily sync, access, collaborate and share their work, files and assets', the AI platform offers a choice of models 'without the friction of switching between workflows and platforms', and on the enterprise side 'Our competitive differentiation comes from the increased value we provide customers by integrating the Adobe Experience Platform with our comprehensive set of solutions'. 96% of FY2025 revenue is subscription, with $22.52B of remaining performance obligations, up 13% year over year. |
| Leadership | co leader Duopoly with Novo Nordisk: Novo's own FY2025 20-F names "Novo Nordisk and Eli Lilly [as] the most significant companies measured by market share" in the global diabetes and GLP-1 markets. Lilly is ascendant — the 20-F concedes Wegovy's years-long US anti-obesity prescription lead "was overtaken by a competing GLP-1 based product in the beginning of 2025" (Lilly's tirzepatide) — but Novo still cites Ozempic as "the leading product by sales," so co-leader is the honest band. Sources: Novo Nordisk FY2025 20-F; LLY FY2025 10-K. | behind The 10-K makes no leadership claim and gives no ranking or share figure. Item 1A concedes "We do not have the resources to compete with larger providers of similar products or services at this time" and that some rivals have "substantially greater liquidity and financial resources than we do." Its Competition section places APLD against established operators (Digital Realty, Equinix), hyperscalers that build their own capacity, independent developers and 13 named power-advantaged developers (IREN, Cipher Digital, TeraWulf, Hut 8, Riot, CleanSpark, HIVE, Core Scientific, Bitdeer, Galaxy Digital, Fermi, Keel Infrastructure, MARA). | clear leader In the segment that is 74% of FY2025 revenue ($17.65B of $23.77B) the 10-K asserts leadership outright: Illustrator 'our industry-standard vector graphics app', After Effects 'our industry-standard motion graphics and visual effects app', Acrobat 'a leading document productivity app', and 'category and brand leadership' in the Competition section. The claim does not extend to the whole company - the same section says the marketing solutions 'face broad competition from large, established enterprise software and cloud companies'. |
| Pricing power | moderate Mixed. The LLY 10-K shows an 83.0% gross margin (up 1.7pp), evidence of strong list-price power on exclusive branded drugs; but it repeatedly notes 2025 revenue growth was "partially offset by lower realized prices" for both Mounjaro and Zepbound, alongside heavy PBM/formulary rebate pressure and default anti-obesity coverage restrictions (e.g., US self-insured employers "must generally opt in" for obesity-drug coverage). Net pricing power is therefore moderate, not strong. | weak Item 1A says "Due to the limited number of hyperscalers, we expect that a limited number of customers will continue to account for a high percentage of our revenue for the foreseeable future," and that if customers' equipment usage declines or they discontinue use of its facilities, APLD "may be compelled to lower our lease prices in some instances or risk losing a significant customer." One customer was 59% of FY2026 revenue from continuing operations. Take-or-pay, non-cancellable terms protect contracted revenue over the base term, and Note 19 reports a $39.1M HPC Hosting segment profit on $385.3M of segment revenue in FY2026, but those terms are agreed with a small group of concentrated buyers. | strong Per the same 10-K's segment table, Digital Media earned a 95% gross profit margin in FY2025 (96% FY2024, 95% FY2023) and consolidated gross margin held at 88%/89%/89% across FY2023-FY2025 while revenue grew 11% to $23.77B. 96% of revenue is subscription and remaining performance obligations reached $22.52B, up 13%. Item 1A's warning of 'downward pressure on pricing and gross margins' has not shown up in realized margin. |
| Summary | Lilly's moat rests on patent-protected, FDA-approved branded medicines led by its tirzepatide incretin franchise: per the FY2025 10-K, Mounjaro ($22.97B) and Zepbound ($13.54B) together generated roughly 56% of 2025's $65.2B revenue (up 99% and 175% respectively), while compound patents confer ~20-year market exclusivity and support an 83.0% gross margin. Durable competition only emerges after patents and regulatory data protection lapse, at which point the 10-K warns generics and biosimilars drive a "severe and rapid decline in revenues." | Applied Digital designs, builds and operates purpose-built, liquid-cooled HPC data centers, which it calls 'AI factories', and leases the capacity to CoreWeave and investment-grade hyperscalers. At May 31, 2026 its 10-K lists five campuses (Polaris Forge 1-3 and Delta Forge 1-2) with about 1,410 MW contracted under roughly 15-year take-or-pay, non-cancellable leases worth about $36.2 billion over the base terms. The filing claims three sources of advantage: it controls power-advantaged sites, it uses a standardized 'franchise-style' design built to deliver about 150 MW in about 14 to 18 months, and it holds hyperscaler master agreements that are 'difficult to obtain.' The same document shows how early the company is. About 100 MW was operating and earning revenue. One customer was 59% of FY2026 revenue from continuing operations. It competes with Digital Realty, Equinix, hyperscalers that build their own capacity and 13 named power-advantaged developers, and it concedes that it lacks the resources to compete with larger providers. Signed leases give long-dated revenue visibility, but the filing does not show a durable competitive advantage. | Adobe's durable advantage is the cost of leaving rather than any disclosed market share. Its FY2025 10-K calls Illustrator 'our industry-standard vector graphics app' and After Effects 'our industry-standard motion graphics and visual effects app', describes Acrobat as 'a leading document productivity app', and sells them as one subscription ecosystem where assets, workflows and collaboration are cloud-resident. The economics follow: Digital Media earned a 95% gross profit margin on $17.65B of FY2025 revenue, 74% of the company. The same filing is unusually candid about the limits, calling its markets characterized by 'limited barriers to entry' and warning that competition will 'continue to intensify' with named generative and agentic AI entrants in both creation and document productivity - so the moat reads narrow rather than wide, held today by realized pricing and switching costs rather than by structural protection. |
| Chain position | Upstream branded-drug originator. Per the FY2025 10-K, US distribution flows through three wholesalers (McKesson, Cencora, Cardinal Health), each accounting for over 10% of consolidated revenue, into consolidated PBMs/payers whose formularies and rebate demands constrain net price; Lilly is also expanding a direct-to-patient channel, LillyDirect. | Developer and landlord of power-advantaged, liquid-cooled AI data-center capacity, leased long-term to CoreWeave and investment-grade hyperscalers. | An AI-application layer company that both builds its own commercially safe Firefly foundation models and licenses 'an extensive ecosystem of third-party models', distributing generative AI into creative, document and marketing workflows. |
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| Long-horizon vote | +0.30 at weight 0.20 · swarm neutral Editorial prior, not backtested. | -0.20 at weight 0.20 · swarm neutral Editorial prior, not backtested. | +0.24 at weight 0.20 · swarm neutral Editorial prior, not backtested. |