Adobe signals slow growth in generative AI tech, disappoints investors

Adobe Inc. gave a lukewarm outlook for sales in 2024, disappointing investors who expected new generative artificial intelligence tools would quickly boost the software company’s results.

Revenue will be about $21.4 billion in the fiscal year ending in December 2024, the company said Wednesday in a statement. Profit, excluding some items, will be as much as $18 a share. Analysts, on average, estimated sales of $21.7 billion and adjusted profit of $18 a share.

Wall Street expects Adobe to be one of the first software giants to benefit from the excitement over generative AI technology, which responds to prompts by producing unique text or images.