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Adobe Begins CEO Search as Shantanu Narayen Plans to Step Down After 18 Years

After-hours trading slumps on questions about Adobe’s AI path despite a quarterly beat.

Overview

  • Shantanu Narayen will leave the CEO post once a successor is named and will remain chair of the board, continuing to lead during the transition.
  • The board formed a special committee chaired by lead independent director Frank Calderoni to evaluate internal and external candidates.
  • Fiscal Q1 topped estimates with adjusted earnings of $6.06 per share and revenue of $6.40 billion, up about 12% year over year.
  • Adobe said annualized revenue from AI-first products more than tripled year over year and guided Q2 revenue to $6.43–$6.48 billion with EPS of $5.80–$5.85.
  • Shares fell about 6%–7% in extended trading as investors questioned competitive positioning in the generative-AI era following the blocked Figma deal and $1 billion breakup fee.