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SAN JOSE, Calif. — Adobe said Monday, March 16, 2026, that CEO Shantanu Narayen will step down after 18 years in the role, starting a leadership change as the company faces growing pressure to move faster in artificial intelligence, March 16, 2026. Narayen will remain board chair while Adobe searches for its next CEO, a move that comes as the company enters a critical period for its AI and customer experience business.
The search will be led by a special committee headed by board member Frank Calderoni. Adobe said it is considering both internal and external candidates, but did not give a timeline.
In a statement, Calderoni praised Narayen’s record at the company. “Shantanu has been the architect of Adobe’s transformation,” he said. “Our focus is on selecting the leader for Adobe’s next exciting chapter while ensuring continuity during this transition.”
Investors reacted quickly. Adobe shares fell more than 8% in premarket trading after the announcement, reflecting uncertainty about the leadership change and concern about how the company will carry out its AI strategy.
Narayen became CEO in 2007, when Adobe had less than $1 billion in annual revenue and about 3,000 employees. Under his leadership, the company grew to more than $25 billion in annual revenue and more than 30,000 employees. He also led Adobe’s shift away from one-time software sales to a cloud subscription business built around products such as Creative Cloud and Experience Cloud.
In a memo to employees, Narayen pointed to the company’s next phase. “The next era of creativity is being written right now,” he said. “It is being shaped by AI, new workflows, and new forms of expression.”
The leadership change comes as analysts question whether Adobe can turn its AI push into lasting growth. Oppenheimer downgraded the company to “market perform,” citing inconsistent product execution and challenges in its AI transition. KeyBanc rated the stock “underweight,” pointing to slower revenue growth, limited margin upside and strong competition from Canva and other generative AI tools.
Adobe still reported solid results for the first quarter of 2026. The company posted $6.4 billion in revenue and adjusted earnings per share of $6.06, both ahead of expectations. Adobe also said revenue from AI products more than tripled from a year earlier, while monthly active users rose 20%.
Chief Financial Officer Dan Durn said Adobe remains confident about its position. “Adobe is well positioned for continued profitable growth,” he said. He said the company remains focused on AI across its creativity, productivity and customer experience products.
Even so, the company faces a key test. Much of its recent user growth has come from free and lower-cost plans, and Adobe still must turn more of those users into higher-paying business customers. The next CEO will be under pressure to show that AI can generate meaningful revenue, support double-digit annual recurring revenue growth and help Adobe stay competitive against AI-native rivals.
That challenge is especially important for Adobe Experience Cloud, which many companies use to manage customer data, personalize content and improve customer journeys. The next CEO will help shape how quickly Adobe moves on product development and AI features in that part of the business.
Narayen said the opportunity ahead remains large. “Our mission to empower everyone to create represents an even larger opportunity as content powers all experiences in the AI era,” he said.
Adobe remains a strong company, but it is entering a more uncertain phase as AI competition grows. The choice of its next CEO is expected to play a major role in deciding how well the company handles its next stage of growth.