Adobe CEO Shantanu Narayen has revealed he will step down after more than 18 years at the helm. The transition is gradual, Narayen will continue leading as CEO until a successor is appointed and will then remain with the company as Chair of the Board.
In an internal memo to employees, Narayen described the moment as “a time for reflection,” highlighting that the upcoming earnings call would mark his 100th at Adobe. The board has named lead independent director Frank Calderoni to head a special committee reviewing both internal and external candidates. Narayen noted on the call that the search is expected to take a few months.
Narayen spearheaded Adobe's transition from selling boxed software to prioritizing a subscription model, which now generates over $25 billion in yearly revenue. This leadership transition marks the end of a transformative era. When Narayen assumed the role of CEO in 2007, Adobe had approximately 3,000 employees and generated less than $1 billion in revenue.
Today, Adobe employs 30,000+, earns over $25 billion annually, and its stock has risen sixfold. Narayen transformed Adobe from traditional software licensing to a subscription-first model with Creative Cloud, making it one of the world’s largest SaaS businesses.
Not all of Adobe’s moves paid off. Its $20 billion bid to acquire Figma collapsed, leaving the company with a $1 billion breakup fee. The stock has also fallen nearly 23 percent in 2026 as investors weigh the potential disruption from generative AI.
Despite these challenges, Adobe surpassed Q1 expectations with AI-first product revenue tripling year-over-year. The company posted fiscal Q1 revenue of $6.40 billion, up 12 percent from last year, and reported an adjusted EPS of $6.06 compared with the $5.87 forecast. Monthly users jumped 17 percent to 850 million and fiscal Q2 guidance exceeded analyst estimate