Adobe announces US$25 billion buyback following share slide
Several software companies have announced new buyback plans in an attempt to send a positive signal to investors
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[SAN FRANCISCO] Adobe will buy back as much as US$25 billion of its stock following a steady decline for more than two years over investor concerns that artificial intelligence will disrupt the company’s business.
The new authorisation, which extends till April 2030, “is a direct expression of confidence in our robust cash flow and the long-term value we are delivering to investors”, chief financial officer Dan Durn said on Tuesday (Apr 21).
The shares gained about 2 per cent in extended trading after closing at US$247.18 in New York. The stock has declined 29 per cent this year, and almost 60 per cent since the beginning of 2024.
Adobe is among a group of software companies that investors have soured on over AI’s potential to disrupt their business models. Generative AI has made it easier to produce visual media without Adobe’s expensive products, which have long been the standard for creative professionals. Many of the most popular new AI tools, such as Google’s Veo 3 AI models, are built by competitors.
Several software companies have announced new buyback plans in an attempt to send a positive signal to investors. Salesforce said in March that it would borrow money to quickly purchase US$25 billion of its stock.
Last month, Adobe said that its longtime CEO Shantanu Narayen would resign after the company picked a successor.
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The repurchase authorisation replaces a previous US$25 billion buyback announced in March 2024, which the company has nearly completed. BLOOMBERG
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