‘Not a goodbye…’: What Adobe CEO Shantanu Narayen told employees after announcing decision to step down

Shantanu Narayen, Adobe’s long-time CEO, announced that he will step down once his successor is selected. Narayen has led Adobe for 18 years and has played a key role in transforming its flagship products, including Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro and Adobe InDesign, into widely used tools for creative professionals around the world.

Narayen, 62, will continue as CEO until a replacement is appointed. He will continue to serve as chairman of the board of directors at the company after leaving office.

“It’s not goodbye…”: Here’s what Narayen said

“This is definitely not a farewell, but a time for reflection. 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 said.

Speaking about AI, Narayen said: “The next era of creativity is being written right now; it is being shaped by AI, new workflows, and entirely new forms of expression. Adobe never waited for the future to come. We envisioned it. We built it and led it. It’s not just our technology that gives me the greatest confidence, it’s our people. Your creativity, flexibility, and commitment to customers will define this moment.”

I love Adobe, and the privilege of leading it has been the greatest honor of my career. “As we continue to deliver Must Wins in FY26, I will ensure I partner with the right leadership and executive team, the Board, for Adobe’s greatness over the next decade,” he added.

The news on Thursday sent Adobe’s shares falling more than 7% in extended trading, as investors renewed concerns about the company’s strategy amid rapid AI-focused shifts in the industry, Reuters reported.

However, at a time when Adobe is focusing on artificial intelligence, forming partnerships and considering acquisitions to strengthen its leadership in the industry, news of his resignation puts the company in a delicate situation. Reuters reported.

In a separate update, Adobe also released its quarterly financial results; reported double-digit growth in overall revenue and customer subscription segments; This shows continued strong demand for the range.

Changing the software environment

Adobe faces challenges in an evolving software landscape where AI is making access to design tools easier. As a result, the company’s long-standing dominance in the industry is increasingly being challenged by new competitors who are rapidly adopting the technology.

“Investors will focus on whether incoming leadership maintains the balance between disciplined execution and aggressive AI investment, especially as competition in the creative and enterprise AI space intensifies,” said Emarketer analyst Grace Harmon. Reuters.

Concerns have also increased with the emergence of automated AI tools and agents that many believe could disrupt traditional software subscription models and offer faster and more affordable ways to build products.

While Adobe is investing heavily in artificial intelligence to bolster its product suite, “investor doubts about the timing and return on monetization may have led to a decline in share prices,” Harmon said.

Adobe’s shares are down nearly 22% so far this year after already falling more than 21% in 2025; This highlighted investors’ growing concerns about the company’s AI strategy and future growth prospects. Reuters reported.

Adobe estimates revenue will range between $6.43 billion and $6.48 billion for the quarter ending in May. Analysts surveyed Bloomberg It estimated average revenue of $6.43 billion. The company also expects adjusted earnings of $5.80 to $5.85 per share; This is above analysts’ average estimate of $5.70 per share.

For the fiscal first quarter ending Feb. 27, Adobe reported revenue of $6.4 billion, up 12% from a year earlier and beating analysts’ average estimate of $6.28 billion. Adjusted earnings for the period were $6.06 per share, above the expected $5.88 per share. Bloomberg.

In the subscription business, creative and marketing professionals generated $4.39 billion in revenue, while business professionals and consumers generated $1.78 billion in revenue.

(With input from institutions)