March 12, 2026 — San Jose, Calif. Adobe CEO Shantanu Narayen announced plans to step down after an 18-year tenure once a successor is appointed, according to the company’s official leadership update. He will remain as board chair to support the transition. The news came alongside Adobe’s fiscal first-quarter 2026 earnings report, which showed revenue of $6.40 billion, up 12% year-over-year and beating analyst expectations of $6.28 billion.
Adobe shares tumbled 7% in extended trading following the Adobe CEO Shantanu Narayen to step down after 18-year tenure announcement, amid concerns over the company’s AI strategy and leadership change, as reported by CNBC.
Earnings Highlights
Adobe reported adjusted earnings per share of $6.06, surpassing estimates of $5.87, with net income rising to $1.89 billion. Annualized revenue from AI-first products more than tripled, and monthly users across key services reached 850 million, up 17%. However, Adobe Stock declined more than expected. Guidance for the second quarter included revenue of $6.43–$6.48 billion.
Transition Details
A special committee, chaired by lead independent director Frank Calderoni, will oversee the CEO search, considering internal and external candidates. The process is expected to take several months.
“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. 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.”
Narayen’s Reflections
In a memo to employees, Narayen reflected on joining Adobe 28 years ago and leading its growth from under 3,000 employees and less than $1 billion in revenue to over 30,000 employees and more than $25 billion in revenue.
“This is not a goodbye by any means but a time for reflection… Our mission, Empower Everyone to Create, represents an even larger opportunity in the AI era.”
— Shantanu Narayen, employee memo
He emphasized Adobe’s positioning to lead in AI-driven creativity.
Reports across outlets confirmed the Adobe CEO Shantanu Narayen to step down after 18-year tenure, highlighting pressures from AI disruptions and competition, per Fortune and Wall Street Journal.
Market and Social Reaction
Adobe shares were down 23% year-to-date prior to the announcement, part of a software sector selloff. Reuters noted added uncertainty over AI strategy. On X, discussions linked to the news, including a Moneycontrol post teasing the Adobe CEO Shantanu Narayen to step down after 18-year tenure.
Narayen’s tenure since 2007 included shifting to a subscription model via Creative Cloud, driving significant stock growth. For more analysis, see related coverage.