Shantanu Narayen announced that he will transition from his role as chief executive of Adobe after serving in the position for more than eighteen years. The company said the transition will occur once the board of directors appoints a successor. Narayen will remain with the company as chair of the board after leaving the CEO role.
Adobe disclosed the leadership plan on March 12, 2026, in San Jose, California. The board has begun a search for the company’s next chief executive and will review both internal and external candidates. Frank Calderoni, Adobe’s lead independent director, will lead the process as chair of a special committee formed to guide the selection.
“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,” Calderoni said in a statement. “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 joined Adobe in 1998 as vice president and general manager and became CEO in 2007. In an email sent to employees on Thursday, March 12, 2026, at 1:04 PM, he said the earnings call he was about to conduct would be his 100th as chief executive. “I want to share with all of you that I have informed the Board of my decision to transition from my role as CEO of Adobe after over 18 years in the job (and the earnings call that I am about to conduct will be my 100th at the greatest company on the planet),” he wrote.
He told employees he will work with Calderoni and the board over the coming months to identify a successor and guide the transition process. After the change in leadership, he will remain chair of the board to support the next CEO, just as Adobe co-founders John Warnock and Charles “Chuck” Geschke supported him when he became chief executive.
In the message to employees, Narayen described the reasons he joined the company. “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,” he wrote. “We have continued to create new markets, deliver world-class products, drive innovation in everything we do, and attract and retain the best and brightest employees.”
During Narayen’s time as CEO, Adobe transitioned its business from selling software licenses to subscription services. Products such as Photoshop, Illustrator, Premiere, and Lightroom have long been used across creative industries. Adobe later introduced a subscription offering for these tools through Creative Suite, which is now called Creative Cloud. Although Adobe was not the first company to use a software-as-a-service model, it became one of the early large technology companies to implement the approach across its product line.
The company expanded substantially during Narayen’s leadership. Adobe’s workforce increased from about 3,000 employees to more than 30,000. Revenue grew from less than $1 billion to more than $25 billion. Narayen told employees that Adobe’s technology reaches billions of people through its products and through digital experiences created by its customers.
Adobe’s stock price rose more than sixfold during his tenure. Over the same period, the S&P 500 increased about 350%.
Narayen, 62, also serves as lead independent director of Pfizer. A filing showed he received $51 million in total compensation for Adobe’s 2025 fiscal year and holds $118 million in Adobe shares, according to FactSet.
Industry executives responded publicly after the announcement. Dylan Field, co-founder and CEO of Figma, wrote on X: “Shantanu is a leader I’ve come to know and respect deeply. He’s thoughtful, kind and relentless in pursuit of Adobe’s vision. Grateful for the time we spent together and wishing him all the best in the years ahead!”
Shantanu is a leader I’ve come to know and respect deeply. He’s thoughtful, kind and relentless in pursuit of Adobe’s vision.
Grateful for the time we spent together and wishing him all the best in the years ahead! https://t.co/jXEotrJnHr
— Dylan Field (@zoink) March 12, 2026
Satya Nadella, chief executive of Microsoft, also posted on X: “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 process and the example you’ve set as a leader.”
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
During Narayen’s tenure, Adobe attempted to acquire Figma, a rapidly growing design software company. Regulators objected to the deal, and both companies later ended the agreement. Adobe paid Figma a $1 billion breakup fee.
The leadership announcement occurred alongside Adobe’s quarterly earnings release. For the fiscal first quarter ending February 27, the company reported adjusted earnings per share of $6.06 compared with the $5.87 expected by analysts surveyed by LSEG. Revenue reached $6.40 billion, exceeding the $6.28 billion estimate.
Revenue increased about 12% year over year during the quarter. Net income reached $1.89 billion, or $4.60 per share, compared with $1.81 billion, or $4.14 per share, during the same quarter the previous year. Adjusted income excluded stock-based and deferred compensation expenses.
Adobe projected fiscal second-quarter adjusted earnings between $5.80 and $5.85 per share with revenue between $6.43 billion and $6.48 billion. Analysts polled by LSEG expected $5.68 per share and $6.42 billion in revenue.
Despite the earnings results, Adobe shares fell 7% in extended trading after the announcement. Investors have been selling software stocks due to concerns about disruption from generative AI models.
Adobe’s stock has declined nearly 23% in 2026 through Thursday’s close, while the S&P 500 has dropped about 3% during the same period. Adobe’s share price also remains more than 60% below its record reached in 2021 after declines of more than 20% in each of the past two years.
Revenue from subscriptions used by creative and marketing professionals reached $4.39 billion in the quarter. That figure represented a 12% increase and exceeded the $4.31 billion consensus estimate compiled by StreetAccount.
Adobe also expanded its AI-related integrations. During the quarter, the company announced that Acrobat, Express and Photoshop apps are available for OpenAI’s ChatGPT assistant. Adobe also expanded a partnership with the advertising company WPP.
Across Acrobat, Creative Cloud, Express and Firefly, Adobe reported 850 million monthly users during the fiscal first quarter, a 17% increase. Narayen told analysts that the adoption “is a clear indication that we have both strong usage and a foundation for monetization.”
The company also said annualized revenue from AI-first products has more than tripled. During the analyst conference call, Narayen said, “That should be our next billion dollar business.”
One area that performed below company expectations was Adobe Stock, the company’s marketplace for stock photos and other media. The service represents a book of business of about $450 billion. During the quarter, its performance declined more sharply than management predicted.
David Wadhwani addressed the change during the call with analysts. “This shift is playing out more quickly than we had planned for, and our focus remains on giving customers meaningful choice between Stock and generative AI as they build their creative and marketing workflows,” he said.
Narayen said the search for Adobe’s next chief executive could take several months. In his message to employees, he also discussed the company’s focus on artificial intelligence. “The next era of creativity is being written right now — shaped by AI, by new workflows and by entirely new forms of expression,” he wrote. “Adobe has never waited for the future to arrive. We’ve anticipated it. We’ve built it. And we’ve led it.”
He told employees that Adobe’s mission, “Empower Everyone to Create,” continues to guide the company’s work in the AI era and said Adobe’s product roadmap and audience strategy position the company for future growth.
“I love Adobe and the privilege of leading it has been the greatest honor of my career,” Narayen wrote. “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.”
