Adobe Drops the Most in Two Years on Fears of AI Disruption
- Fiscal year sales, profit forecasts fall short of estimates
- Software maker plans a new higher-priced tier for AI tools
Adobe’s stock has dropped 7.8% this year, lagging behind software peers and industry benchmarks.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Adobe Inc.’s shares fell the most in more than two years after the firm gave a disappointing annual sales outlook, underscoring anxieties that the creative software company may lose business to emerging artificial intelligence-based startups.
Revenue will be about $23.4 billion in the fiscal year ending in November 2025, the company said Wednesday in a statement. Earnings, excluding some items, will be $20.20 a share to $20.50 a share. Analysts, on average, estimated sales of $23.8 billion and adjusted profit of $20.52 a share, according to data compiled by Bloomberg.