Adobe ($ADBE) experiences a significant drop of 10% in after-hours trading following a weak revenue forecast for the second quarter. This decline comes despite the company beating earnings estimates. Analysts note that the stock was already stretched, with concerns over generative AI's impact on the company's performance. The drop prompts Adobe to announce a $25 billion share buyback after disclosing a weak outlook. Despite beating earnings, Smartsheet ($SMAR) also sees its shares drop by 11% after-hours due to a soft revenue forecast. PagerDuty ($PD) reports growth but faces challenges, leading to a 9.2% pre-market drop. Adobe CEO Shantanu Narayen discusses the company's strong traction with generative AI during the latest quarter.