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Adobe CEO Shantanu Narayen to Step Down After Successor Is Named

Investor skepticism over Adobe’s AI strategy sent shares lower following the succession plan.

Overview

  • Narayen will remain board chair and continue to lead until a successor is appointed, with a special committee led by Frank Calderoni running the CEO search.
  • Adobe posted fiscal Q1 results above estimates—adjusted EPS $6.06 and revenue $6.40 billion—with Q2 guidance slightly ahead of Wall Street.
  • The company said annualized revenue from AI-first products more than tripled year over year as it expands Firefly and AI features across Creative Cloud, Acrobat and Express.
  • Shares fell roughly 6–7% in extended trading, leaving the stock down about 23% in 2026 as concerns about AI-driven disruption weigh on software valuations.
  • Narayen’s 18-year tenure included the shift to subscriptions and a scrapped $20 billion Figma deal that resulted in a $1 billion breakup fee.