Adobe set for biggest gain since 2020 after AI sales success

The long-time leader in software for graphic arts professionals has faced a fresh wave of investor anxiety that generative AI will cut into its market.

The results signal that Adobe’s efforts to incorporate AI features into its products are gaining support among customers as the company battles smaller rivals, including startups focused on the emerging technology. Pic: AP Photo/Paul Sakuma

Adobe shares are set for their biggest gain in about four years after projecting strong future sales for its creative products, suggesting customers are adopting the company’s new artificial intelligence-based tools.

A closely watched metric of new creative software business — digital media net new annual recurring revenue — will be $460m in the current quarter, compared with the average estimate of $435m.