March 12, 2026 — San Jose, Calif. Adobe CEO Shantanu Narayen announced in an internal memo that he plans to step down after an 18-year tenure once a successor is named, transitioning to the role of board chair. The news came alongside the company’s first-quarter earnings report, which beat expectations but saw shares drop amid concerns over its AI strategy.
Narayen informed the board of his decision ahead of Adobe’s earnings call, his 100th as CEO. He will work with lead director Frank Calderoni and the board over the coming months to identify a successor and ensure a smooth transition.
I have informed the Board of my decision to transition from my role as CEO of Adobe after over 18 years in the job… I will stay on as Chair of the Board to support the next CEO just as John and Chuck did when I took on this role.
Narayen highlighted Adobe’s growth under his leadership, from fewer than 3,000 employees and under $1 billion in revenue to more than 30,000 employees and over $25 billion in annual revenue.
Earnings Beat Amid Stock Slide
Adobe reported Q1 revenue of $6.40 billion, topping estimates of $6.28 billion, with adjusted EPS of $6.06 versus $5.87 expected. Annualized revenue from AI-first products more than tripled. However, shares fell 7% in extended trading, down 23% year-to-date, reflecting investor worries about AI disruption and slower Adobe Stock revenue growth. Q2 guidance projected $6.43–$6.48 billion in revenue and $5.80–$5.85 adjusted EPS.
Frank Calderoni praised Narayen in a statement:
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.
AI Era Transition and Tenure Legacy
Narayen emphasized Adobe’s positioning in the “AI era,” stating the company’s mission to “Empower Everyone to Create” offers vast opportunities. Reports framed the departure amid pressure to deliver on AI amid competition and a failed Figma deal, as covered by Fortune and the Wall Street Journal.
The announcement echoed widely, with Moneycontrol’s newsletter highlighting “Shantanu Narayen to step down from Adobe after 18-year run” in a promoted X post. Similar headlines appeared in CNBC, Yahoo Finance, and CMSWire, underscoring “Shantanu Narayen to step down from Adobe after 18-year run” as a key tech story.
Local outlet San Francisco Chronicle noted the impact on the Bay Area company. Narayen remains committed to Adobe’s FY26 goals during the search.
Our mission, Empower Everyone to Create, represents an even larger opportunity in the AI era.
Adobe’s shift to AI-driven workflows continues, with executives stressing customer choice in tools.