April 21 (Reuters) - Adobe on Tuesday announced a share repurchase program worth up to $25 billion through April 30, 2030, as the Photoshop maker seeks to reassure investors of its growth strategy amid the rise of creative autonomous tools.
Its shares rose around 2% in extended trading, but the stock has fallen around 30% this year as investors weigh the effects of new agentic models that many fear could hamper demand for traditional software and design products such as those provided by Adobe.
"Our
new $25 billion share repurchase authorization is a direct expression of confidence in our robust cash flow and the long-term value we are delivering to investors," said Adobe CFO Dan Durn.
Fears were compounded when top AI firm Anthropic unveiled Claude Design last week, which allows users to create designs, prototypes and presentations using its chatbot.
In a bid to fend off competition from autonomous tools, Adobe on Monday launched a suite of AI products to help clients automate and personalize digital marketing functions.
These rapidly evolving models come at a highly uncertain time for Adobe after longtime CEO Shantanu Narayen decided to exit the role in March, sparking concerns about the trajectory of its AI strategy.
Investors have been on the heels of Adobe for years to show meaningful returns from its AI products as the technology has enabled smaller firms such as Figma to challenge its industry dominance.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)
