Sept 12 (Reuters) - Photoshop maker Adobe

forecast fourth-quarter earnings below analysts' estimates on

Thursday, signaling stiff competition and soft demand for its

AI-integrated editing tools amid challenging economic

conditions.

Shares of the company fell 9.2% in extended trading.

High interest rates and a tough economy have led enterprises

and individuals to focus on cutting costs, putting pressure on

Adobe's growth.

Founded in 1982, Adobe is one of the largest suppliers of

software for visual and video artists, which include household

names such as Acrobat, Photoshop and Premiere Pro.

The San Jose, California-based company also faces

competition from startups such as Stability AI and Midjourney,

which provide similar AI services - including generating images

from text prompts.

Adobe expects revenue for the fourth quarter to be between

$5.50 billion and $5.55 billion, compared with LSEG estimates of

$5.61 billion.

Excluding items, it expects quarterly profit to be between

$4.63 and $4.68 per share, compared with estimates of $4.67 per

share.

Adobe is set to launch a new generative AI-powered video

creation tool called Adobe Firefly Video Model in a limited

series later this year, which is expected to garner the

attention of creative professionals.

Revenue for the quarter ended Aug. 30 was $5.41 billion,

above LSEG estimates of $5.37 billion.

Operating expenses for the third quarter were $2.86 billion,

compared with $2.61 billion a year earlier.