Adobe’s longtime CEO, Shantanu Narayen, will step down once a successor is appointed, the design software giant said on Thursday, sending shares down over 7% in extended trading.
Narayen, who has led the company for 18 years, will remain as chair to support the transition.
The announcement comes amid growing concerns over Adobe’s AI strategy, as new automated tools threaten to disrupt traditional software subscription models. Analysts say investors will be watching whether incoming leadership balances disciplined execution with aggressive AI investment, especially as competition in creative and enterprise AI intensifies.
Adobe reported first-quarter revenue of US$6.40 billion, beating estimates of US$6.28 billion, and adjusted earnings per share of US$6.06, above forecasts of US$5.87. Revenue from its Creative and Marketing subscription segments came in at US$4.39 billion, surpassing analyst expectations of US$4.32 billion.
Despite strong financials, Adobe shares have fallen around 22% year-to-date after declining more than 21% in 2025, reflecting investor caution over the AI-driven shift in its product offerings. The company forecasts second-quarter revenue between US$6.43 billion and US$6.48 billion, roughly in line with expectations.
Reuters
