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

Leadership Transition - Adobe CEO Shantanu Narayen will step down after a successor is named but will remain as chair of the board, leading to a 6% drop in shares during extended trading [1] - Narayen joined Adobe in 1988 and became CEO in 2007, overseeing a shift from software licenses to subscriptions and focusing on generative AI [2] - The board recognizes Narayen's contributions and is focused on selecting the right leader for the next chapter of growth [3] Financial Performance - Adobe reported a 12% year-over-year revenue growth for the quarter ending February 27, exceeding LSEG consensus [4] - The company forecasts adjusted earnings per share between $5.80 and $5.85, with revenue expectations of $6.43 billion to $6.48 billion, surpassing analyst expectations [5] - Subscription revenue for creative and marketing professionals reached $4.39 billion, also above analyst consensus [6] Market Context - Adobe shares have declined nearly 23% in 2026 amid concerns over disruption from generative AI models, while the S&P 500 index is down about 3% in the same period [5] - The company reported adjusted earnings per share of $6.06, exceeding the expected $5.87, and revenue of $6.40 billion, surpassing the expected $6.28 billion [7]