Adobe CEO Shantanu Narayen will leave after company picks successor

Adobe He said CEO Shantanu Narayen will step down once his successor is appointed and remain as chairman of the design software company. Shares lost 7% of their value in long trading.

Narayen joined Adobe in 1988 as vice president and general manager and became CEO in 2007. Under Narayen, Adobe has moved from software licenses to Creative Cloud app suite subscriptions, and the company is now looking to expand through generative AI. Tried to buy fast-growing design software company figmaBut regulators backed down and the companies canceled the deal, resulting in Adobe paying Figma a $1 billion breakup fee.

“On behalf of the Board of Directors, I want to recognize Shantanu’s contributions as CEO and architect of Adobe’s transformation over the past 18 years and his contributions to position Adobe for success in the AI-driven era,” said Frank Calderoni, Adobe’s lead independent director. expression. “As we take the next step in succession planning, we are focused on selecting the right leader for the company’s next exciting chapter of growth, and we are grateful for Shantanu’s continued leadership as CEO to ensure a smooth transition.”

Narayen, 62, is the lead independent director. Pfizer In addition to his responsibilities at Adobe, he received total compensation of $51 million for fiscal year 2025. filing. He owns $118 million worth of Adobe stock, according to FactSet.

One memory Narayen wrote to employees that he would remain on the board to support the next Adobe CEO, just as he did when co-founders John Warnock and Charles “Chuck” Geschke became chairman.

“What attracted me to Adobe 28 years ago was our leadership in creating new market categories, world-class products, our desire to continually innovate in every functional area of ​​the company, and the people I met during the interview process,” Narayen wrote. “We have continued to create new markets, deliver world-class products, drive innovation in everything we do, and attract and retain the best and brightest employees.”

Adobe’s shares have increased more than sixfold under Narayen’s watch, while the S&P 500 has gained nearly 350% in the process.

“Shantanu is a leader I know and respect deeply,” wrote Figma co-founder and CEO Dylan Field. x post. “He is thoughtful, kind, and relentlessly pursuing Adobe’s vision. We are grateful for our time together and wish him the best in the years to come!”

Satya Nadella, CEO of partner Adobe MicrosoftHe congratulated Narayen.

“You’ve built one of the world’s most important software companies and expanded what’s possible for creators, entrepreneurs, and brands,” Nadella wrote. in x. “What always stands out to me is the empathy you bring to the creative process and the example you set as a leader.”

Along with the leadership announcement, Adobe also reported strong results and guidance.

Here is the company’s performance compared to the LSEG consensus:

• Earnings per share: $6.06 adjusted, expected $5.87
• Revenues: 6.40 billion dollars, while the expectation was 6.28 billion dollars

Adobe’s revenue grew nearly 12% year over year in the fiscal first quarter ending Feb. 27. expression. Net income of $1.89 billion, or $4.60 per share, increased from $1.81 billion, or $4.14 per share, in the same quarter a year ago. Adjusted income excludes share-based and deferred compensation expense.

The company said annual revenue from AI-first products has more than tripled.

For guidance, Adobe called for adjusted earnings per share of $5.80 to $5.85 and revenue of $6.43 billion to $6.48 billion in the fiscal second quarter. Analysts surveyed by LSEG expected revenue of $5.68 per share and revenue of $6.42 billion.

Investors are punishing software stocks due to concerns about disruption to productive AI models. Adobe shares are down about 23% so far in 2026 as of Thursday’s close, while the S&P 500 index is down about 3% over the same period. The stock has lost more than 60 percent of its record high in 2021 after falling more than 20 percent in each of the last two years.

Revenue from subscriptions for creative and marketing professionals rose 12% to $4.39 billion, above the $4.31 billion consensus among analysts surveyed by StreetAccount.

This quarter, Adobe, Acrobat, Express and Photoshop applications For OpenAI’s ChatGPT assistant extended partnership with advertising company WPP.

Adobe had 850 million monthly users across Acrobat, Creative Cloud, Express and Firefly in the fiscal first quarter, Narayen said in a conference call with analysts. Adoption is “a clear indication that we have both strong usage and monetization foundation,” he said.

— CNBC’s Ari Levy contributed to this report.

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