Adobe CEO Shantanu Narayen says he will step down as CEO after successor has been named

Adobe said CEO Shantanu Narayen will step down as CEO after a successor has been named, and remain as chair of the design software company’s board. Shares were down 6% in extended trading.

Narayen joined Adobe in 1988 as a vice president and general manager, and he became CEO in 2007. Under Narayen, Adobe pushed from software licenses to subscriptions to its Creative Cloud application bundle, and the company is now working to expand through generative artificial intelligence.

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

The company also reported strong results and quarterly guidance.

Here’s how the company did in comparison with LSEG consensus:

• Earnings per share: $6.06 adjusted vs. $5.87 expected
• Revenue: $6.40 billion vs. $6.28 billion expected

Adobe’s revenue grew about 12% year over year in the quarter, which ended on Feb. 27, according to a statement.

With respect to guidance, Adobe called for 5.80 to $5.85 in fiscal second-quarter adjusted earnings per share on $6.43 billion to $6.48 billion billion in revenue. Analysts polled by LSEG were looking for $5.68 per share and $6.42 billion in revenue.

Investors have been punishing software stocks because of concerns about disruption from generative AI models. Adobe shares were down nearly 23% so far in 2026 as of Thursday’s close, while the S&P 500 index was down about 3% in the same period.

Revenue from subscriptions for creative and marketing professionals totaled $4.39 billion, up 12% and above the $4.31 billion consensus among analysts polled by StreetAccount.

During the quarter, Adobe announced the availability of Acrobat, Express and Photoshop apps for OpenAI’s ChatGPT assistant, along with an expanded partnership with advertising company WPP.

Executives will discuss the results on a conference call starting at 5 p.m. ET.

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