Adobe stock slide reported

Adobe shares closed at $225.35 on April 10, down about 35.6% over the past year as investors kept marking down the design-software company. (finance.yahoo.com) The stock is now near the bottom of its 52-week range of $224.13 to $422.95, according to Yahoo Finance market data. Yahoo also listed Adobe’s market value at about $91.9 billion at Friday’s close. (finance.yahoo.com) The slide has come even as Adobe kept posting growth. The company said first-quarter fiscal 2026 revenue reached $6.40 billion, up 11% from a year earlier, and non-Government Accounting Principles earnings per share rose to $6.06 from $5.08. (adobe.com, finance.yahoo.com) Adobe said on March 12 that “AI-first” annual recurring revenue more than tripled year over year, while Yahoo Finance’s earnings transcript said growth in those products was offset by a faster-than-expected decline in the traditional stock-content business. (sec.gov, finance.yahoo.com) That tension has shaped the stock’s rerating. Adobe is still selling subscriptions for Photoshop, Illustrator and marketing software, but investors have been revaluing companies whose older tools now compete with image, video and design features built into newer artificial-intelligence products. (finance.yahoo.com, techcrunch.com) Competition is no longer limited to Adobe’s usual software rivals. Canva said in February it had more than 265 million monthly active users and more than 31 million paid users in 2025, with growth tied in part to its artificial-intelligence tools. (techcrunch.com) Adobe also added a leadership overhang in March. The company said Chief Executive Officer Shantanu Narayen, who has led Adobe for 18 years, will step down after a successor is appointed and remain board chair. (adobe.com) Reuters reported on March 13 that Adobe shares fell after that announcement as investors weighed the chief executive transition alongside questions about Adobe’s strategy against rising artificial-intelligence competition. (reuters.com) A separate legal issue hit the company the same week. Adobe said it finalized a settlement with the United States Department of Justice over disclosure and subscription-cancellation practices in litigation filed in June 2024, while saying it denied wrongdoing. (adobe.com, cnbc.com) Adobe’s own filings still show a large, profitable business. In fiscal 2025, the company reported record revenue of $23.52 billion, fourth-quarter revenue of $6.19 billion and operating cash flow of more than $10 billion. (adobe.com) For now, the market is valuing Adobe less like a software company with steady subscription growth and more like an incumbent that has to prove its artificial-intelligence products can replace pressure on its older businesses. (finance.yahoo.com, finance.yahoo.com)