India, June 12 -- Adobe entered the second half of fiscal 2026 with impressive financial momentum, reporting record quarterly revenue, stronger profitability and accelerating adoption of its artificial intelligence products. Despite outperforming market expectations and lifting its full-year outlook, the company faced a sharp selloff in its shares while investors appeared more focused on leadership uncertainty and rising competitive pressures than on Adobe's latest financial achievements.

The Photoshop maker's stock declined more than 6% during regular trading and extended losses after hours, highlighting growing concerns about the company's long-term strategy in an increasingly AI-driven creative software market.

Adobe (ADBE) Stock Upd...