Adobe Shares Tumble on Weak Revenue Forecast Amid AI Competition Concerns

Despite exceeding first-quarter expectations, Adobe's cautious outlook and AI competition fears weigh on investor sentiment.

Adobe shares fell approximately 12% following a weaker-than-expected quarterly revenue forecast, sparking concerns over AI competition and its financial outlook.
The company reported first-quarter earnings that exceeded expectations, with a revenue of $5.18 billion and adjusted earnings per share of $4.48.
Adobe anticipates second-quarter revenue to be between $5.25 billion and $5.30 billion, slightly below analysts' expectations of $5.31 billion.
Analysts remain optimistic about Adobe's AI initiatives, particularly its generative AI tool Firefly, despite a slower monetization ramp.
Adobe announced a $25 billion share buyback program, signaling confidence in its long-term growth prospects.