Earnings Hit

Adobe reported Q1 2026 earnings on March 13 beating top and bottom lines but faced declines in annual recurring revenue for its traditional stock photo segment due to AI-generated imagery competition. AI disruption battered the segment, leading to a tough post-earnings stock reaction. ARR imagery revenue fell notably as users shift to generative tools. This underscores AI's transformative pressure on creative software markets.

Adobe reported Q1 2026 earnings beat on top and bottom lines but faced pressure in its traditional stock photo segment battered by AI-generated imagery, disclosed March 13, 2026. Annual recurring revenue in imagery declined due to generative AI disruption. CEO Shantanu Narayen noted market momentum persists for core products despite challenges. This highlights ongoing AI transformation in creative industries.