Shares of Adobe Inc (NASDAQ:ADBE) experienced a significant decline in pre-market trading on Thursday, following the company's release of a revenue forecast that fell short of expectations.

The Photoshop maker saw its shares drop by 11.75% during pre-market hours on Thursday, according to Benzinga Pro. This decline followed a lackluster full-year revenue forecast, raising concerns about the timeline for returns on AI investments.

Adobe released its fourth-quarter financial results after the market closed on Wednesday. The company reported revenue of $5.61 billion, surpassing the consensus estimate of $5.54 billion. Adjusted earnings per share were $4.81, exceeding analyst predictions of $4.66 per share.

Despite beating estimates for eight consecutive quarters, Adobe's guidance for the upcoming year fell short of expectations. The company anticipates first-quarter revenue between $5.63 billion and $5.68 billion, compared to estimates of $5.73 billion. Full-year 2025 revenue is expected to range from $23.3 billion to $23.55 billion, below the projected $23.79 billion.

Adobe's stock faced selling pressure due to this soft guidance. The company plans to discuss the quarter further during a call with analysts and investors from 5 p.m. to 6 p.m. ET. RBC analyst Matthew Swanson told Reuters that the lack of explicit monetization metrics for Adobe's GenAI product roadmap is a concern for investors.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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