Adobe's AI Boost Delayed, Shares Slide on Weak Forecast

Adobe Inc. has given a lukewarm sales outlook for 2024, disappointing investors who were expecting new generative artificial intelligence (AI) tools to quickly boost the company's results. The software giant's revenue is projected to be around $21.4 billion in 2024, falling short of analysts' estimates of $21.7 billion. Adobe's digital media unit, which includes popular software like Photoshop and Illustrator, also missed expectations for annual recurring revenue. The company's conservative outlook suggests that it may take longer than anticipated to see significant contributions from its generative AI products. Adobe is currently facing regulatory hurdles for its planned acquisition of design software startup Figma Inc. and is also under investigation by the US Federal Trade Commission for its subscription cancellation practices.