Overview
- Narayen will remain board chair and continue to lead until a successor is appointed, with a special committee chaired by lead independent director Frank Calderoni running a search of internal and external candidates.
- Adobe beat fiscal Q1 expectations with $6.40 billion in revenue, up 12% year over year, and adjusted earnings of $6.06 per share; Creative and Marketing Professionals subscription revenue reached $4.39 billion.
- For Q2, Adobe guided to adjusted earnings of $5.80 to $5.85 per share on revenue of $6.43 billion to $6.48 billion.
- The company said annualized revenue from AI-first products more than tripled year over year, alongside new product integrations such as Acrobat, Express and Photoshop apps for ChatGPT and an expanded partnership with WPP.
- The stock fell roughly 6% to 7% in after-hours trading following the news, and shares are down about 22% to 23% this year as investors weigh competitive pressures and the pace of AI monetization.