Adobe CEO steps down after 18 years
What's the story
Adobe's long-serving CEO, Shantanu Narayen (62), has announced his resignation amid investor concerns over the company's future in the artificial intelligence (AI) space. Narayen has been at the helm of Adobe for 18 years and will continue to serve as CEO until a successor is appointed. He will also continue as board chairman after stepping down from his executive role.
Market reaction
Narayen's departure raises strategic concerns for Adobe
Narayen's impending departure has raised questions about strategic continuity, capital allocation priorities, and pace of innovation at Adobe. The company's shares fell by nearly 7% after the announcement. The stock has already fallen by some 23% in 2026, nearing a three-year low. Grace Harmon, an analyst at eMarketer, said investors will be closely watching how the new leadership balances disciplined execution with aggressive AI investment amid rising competition in creative and enterprise AI sectors.
Legacy impact
Narayen's legacy at Adobe
Under Narayen's leadership, Adobe has witnessed tremendous growth. The company's annual revenue has increased nearly sixfold to about $24 billion since he took over in late 2007. The workforce has also grown from some 7,000 employees to over 30,000. He is credited with pioneering the subscription-based business model for software products instead of one-time purchases of individual applications.
AI challenges
Investor scrutiny and competition challenges
Despite his successful tenure, Narayen's leadership has come under scrutiny from investors in recent years. The rise of generative AI has made it easier to create visual media without Adobe's expensive products. Many popular new AI creative tools, such as Google's Veo 3 AI models, are developed by competitors, further intensifying the competition for Adobe.
Financial outlook
Positive momentum in AI products and revenue projections
Despite the challenges, Adobe's AI-first products such as Firefly have seen their annual recurring revenue more than triple in the fiscal first quarter compared to last year. The company also projected revenue for the period ending in May to be between $6.43 billion and $6.48 billion, matching analysts' average estimate of $6.43 billion. Profit excluding some items is expected to be between $5.80 and $5.85 a share, slightly higher than an average projection of $5.70.
Quotes
Microsoft and Figma CEOs react on the news
Satya Nadella, CEO of Microsoft, shared a special post for Narayen on X, praising his role in shaping Adobe into a major software company. He wrote Narayen had "a legendary run at Adobe." Dylan Field, CEO of Figma, which Adobe attempted to acquire in 2022, described Narayen as "thoughtful, kind, and relentless in pursuing Adobe's vision."
Twitter Post
Check out Nadella's post
Congrats Shantanu, on a legendary run at Adobe! You’ve built one of the most important software companies in the world, and expanded what’s possible for creators, entrepreneurs, and brands everywhere. What has always stood out to me is the empathy you’ve brought to the creative…
— Satya Nadella (@satyanadella) March 12, 2026