Adobe Slips After Revenue Outlook Fails to Sway AI Skeptics

Adobe Inc. shares fell the most in three months after the creative-software company gave a sales outlook for the current quarter that failed to calm investors who have been skeptical it can hold its own against AI-focused upstarts.

Adobe has become a central focus of investors debating whether artificial intelligence tools will disrupt traditional software industry leaders. Design applications like those from Canva Inc. and image-creation tools from AI firm Midjourney Inc. have gained steam while Adobe has weaved generative AI tools through its products, including Photoshop. In February, it introduced separate subscriptions for its AI video generator, trying to compete with similar tools from rivals including OpenAI and Runway.