Adobe forecasts fiscal 2025 revenue below estimates on slower subscription spending

(Reuters) -Photoshop maker Adobe (NASDAQ:ADBE) forecast annual revenue below Wall Street estimates on Wednesday, indicating the company’s investments to weave AI into its software applications were taking longer to bear fruit.

Shares of the San Jose, California-based company fell over 6% in extended trading.

The company forecast revenue between $23.30 billion and $23.55 billion compared with estimates of $23.78 billion, according to data compiled by LSEG.

While Adobe projected strong growth for the second half of the year in June, its forecast on Wednesday indicated the company was still struggling to monetize its AI push.