Adobe’s Growth Slows as AI Disruption Threatens Creative Software Dominance

Adobe faces mounting Wall Street skepticism as generative AI tools erode its once-unassailable position in creative software. The company's fiscal third-quarter results, due Thursday, are projected to show revenue growth of just 9.3% - potentially its slowest annual pace in over a decade. Shares have plummeted 50% since late 2023, trading at a decade-low valuation of under 16 times earnings.

"AI image generation replacing stock photography and editing tools represents the clearest disruption vector," notes Brian Barbetta of Wellington Management. The rapid ascent of AI startups contrasts sharply with Adobe's decelerating growth trajectory, now forecast to weaken annually through 2028. While maintaining profitability, the creative software pioneer struggles to demonstrate indispensability in an era where text prompts can bypass traditional design suites.