Wall Street analysts have slashed their outlook on Adobe Inc. to its lowest level since 2013, citing fears that the company’s core creative‑software business may falter amid the rapid rise of generative AI tools. The downgrade follows a series of earnings releases that showed slower growth in the flagship Photoshop and Illustrator suites, while the firm’s newer AI‑powered features have yet to translate into a significant revenue boost. Analysts point to a broader shift in the creative‑software market, where subscription models and cloud services are increasingly contested by AI‑driven platforms that can automate design tasks.

For Adobe Inc., the challenge is twofold: maintaining its long‑standing dominance in professional design while investing heavily in AI research to stay relevant. If the company fails to accelerate its AI roadmap, investors fear a prolonged decline in earnings and a potential erosion of market share. The next quarter’s earnings will be a key test of whether Adobe Inc. can turn the AI threat into a growth opportunity.