‘Not a goodbye…’: What Adobe CEO Shantanu Narayen told employees after announcing decision to step down

Shantanu Narayen, the longtime CEO of Adobe, announced on Thursday that he will step down once a successor is chosen. Narayen has led Adobe for 18 years, playing a key role in turning its flagship products, including Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, and Adobe InDesign, into widely used tools for creative professionals around the world.

At 62, Narayen will continue serving as CEO until a replacement is appointed. After stepping down from the role, he will remain involved with the company as its board chairman.

“Not a goodbye…”: Here's what Narayen said

"This is not a goodbye by any means, but a time for reflection. What attracted me to Adobe 28 years ago was our leadership in creating new market categories, world-class products, a relentless desire to innovate in every functional area of the company and the people I met during the interview process," Narayen said.

Speaking on AI, Narayen said, “The next era of creativity is being written right now — shaped by AI, by new workflows and by entirely new forms of expression. Adobe has never waited for the future to arrive. We’ve anticipated it. We’ve built it. And we’ve led it. What gives me the greatest confidence isn’t just our technology — it’s our people. Your ingenuity, resilience and commitment to customers are what will define this moment.”

He added, "I love Adobe, and the privilege of leading it has been the greatest honour of my career. I will ensure that I set up Adobe for its next decade of greatness with the right leader and executive team, in partnership with the Board, while continuing to deliver on our FY26 Must Wins."

The news caused Adobe’s shares to fall more than 7% in extended trading as investors renewed concerns about the company’s strategy amid rapid, AI-driven changes in the industry, reported Reuters.

However, the news of his stepping down places the company in a sensitive situation, as it comes at a time when Adobe is intensifying its focus on artificial intelligence, forming partnerships and considering acquisitions to strengthen its leadership in the industry, Reuters reported.

In a separate update, Adobe also released its quarterly financial results, reporting double-digit growth in overall revenue and in its customer subscription segments, indicating continued strong demand for its range of products.

Changing software landscape

Adobe is facing challenges in an evolving software environment where artificial intelligence is making design tools easier to access. As a result, the company’s long-standing dominance in the industry is increasingly being challenged by new competitors that are rapidly adopting the technology.

“Investors will likely focus on whether incoming leadership maintains a balance between disciplined execution and aggressive AI investment, especially as competition in creative and enterprise AI intensifies,” said Emarketer analyst Grace Harmon, reported Reuters.

Concerns have also grown with the emergence of automated AI tools and agents, which many believe could disrupt traditional software subscription models and introduce faster and more affordable ways to create products.

While Adobe has bet heavily on artificial intelligence to bolster its product suite, “investor scepticism about monetization timing and payoff may have factored into a drop in its share prices,” Harmon said.

Shares of Adobe have dropped about 22% so far this year, after already falling more than 21% in 2025, highlighting growing investor concerns about the company’s AI strategy and future growth prospects, Reuters reported.

Adobe forecasts revenue for the quarter ending in May will range between $6.43 billion and $6.48 billion. Analysts surveyed by Bloomberg put the average estimate at $6.43 billion. The company also expects adjusted profit of $5.80 to $5.85 per share, higher than the analysts’ average projection of $5.70 per share.

In the fiscal first quarter, which ended on 27 February, Adobe reported revenue of $6.4 billion, marking a 12% increase from a year earlier and exceeding analysts’ average estimate of $6.28 billion. Adjusted earnings for the period came in at $6.06 per share, beating the expected $5.88 per share, as reported by Bloomberg.

Within its subscription business, creative and marketing professionals contributed $4.39 billion in revenue, while business professionals and consumers generated $1.78 billion.

(With inputs from agencies)